Report from Growing Concerns, Possible Solutions: The Interdependency of Natural Gas and Electricity Systems

The issue of electricity-natural gas interdependence is becoming a major energy policy and regulatory issue in all jurisdictions around the world. In this paper, we develop a model that looks at natural gas and electricity simultaneously, and apply it to the scenarios for European decarbonization at the horizon 2030/2050. The increased role of gas fired plants in RES dominated electricity markets and the dependence on gas imports make this particular striking for the European energy market. We provide a first comprehensive combined analysis of electricity and natural gas infrastructure issues with an applied focus. We analyze different scenarios of the long-term European decarbonization pathways sketched out by the Energy Roadmap 2050. We identify criteria issues related to electricity and/or natural gas infrastructure in and the interrelation between both markets. The new modeling approach of “combining” energy markets clearly leads to insights that go beyond the traditional, sector-specific approach.