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Identifying emerging smart grid impacts to upstream and midstream natural gas operations

McIntyre, Annie M.

The Smart Grid has come to describe a next-generation electrical power system that is typified by the increased use of communications and information technology in the generation, delivery and consumption of electrical energy. Much of the present Smart Grid analysis focuses on utility and consumer interaction. i.e. smart appliances, home automation systems, rate structures, consumer demand response, etc. An identified need is to assess the upstream and midstream operations of natural gas as a result of the smart grid. The nature of Smart Grid, including the demand response and role of information, may require changes in upstream and midstream natural gas operations to ensure availability and efficiency. Utility reliance on natural gas will continue and likely increase, given the backup requirements for intermittent renewable energy sources. Efficient generation and delivery of electricity on Smart Grid could affect how natural gas is utilized. Things that we already know about Smart Grid are: (1) The role of information and data integrity is increasingly important. (2) Smart Grid includes a fully distributed system with two-way communication. (3) Smart Grid, a complex network, may change the way energy is supplied, stored, and in demand. (4) Smart Grid has evolved through consumer driven decisions. (5) Smart Grid and the US critical infrastructure will include many intermittent renewables.