Natural gas for generation: a solution or a problem?

Abstract

Natural gas is an essential energy source that has many applications, including heating homes and businesses, powering industrial and agricultural production, and, most recently, generating a substantial amount of electricity needs. Thus, natural gas plays a vital role in achieving the nation's economic and environmental goals. The high price and high volatility of natural gas has been a great concern for those expecting to profit from gas-fired generation units in the competitive electricity markets. Among the reasons for the emergence of gas-fired generation capacity are the high efficiency and environmental friendliness of gas-fired units and presumed low gas prices. This paper discusses the advantages and disadvantages of using natural gas for generating electricity. The bottom line is that natural gas cannot be a long-term fuel choice for generating electricity. Fuel diversification and devotion should be a common understanding among industry, government, academics, and the general public.