{"id":5112,"date":"2024-10-23T02:02:03","date_gmt":"2024-10-23T02:02:03","guid":{"rendered":"https:\/\/energeia-usa.com\/?p=5112"},"modified":"2025-01-27T20:32:34","modified_gmt":"2025-01-27T20:32:34","slug":"natural-gas-decarbonization-strategies-and-impacts","status":"publish","type":"post","link":"https:\/\/energeia-usa.com\/natural-gas-decarbonization-strategies-and-impacts\/","title":{"rendered":"Natural Gas Decarbonization Strategies and Impacts"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"5112\" class=\"elementor elementor-5112\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-17b2f9c8 e-con-full e-flex e-con e-parent\" data-id=\"17b2f9c8\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4d5ea656 elementor-widget elementor-widget-spacer\" data-id=\"4d5ea656\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-a82be49 c-box e-flex e-con-boxed e-con e-parent\" data-id=\"a82be49\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-66503b2 e-con-full e-flex e-con e-child\" data-id=\"66503b2\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-69160e7 elementor-widget elementor-widget-post-info\" data-id=\"69160e7\" data-element_type=\"widget\" data-widget_type=\"post-info.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul class=\"elementor-inline-items elementor-icon-list-items elementor-post-info\">\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item elementor-repeater-item-dc7e6e9 elementor-inline-item\" itemprop=\"about\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text elementor-post-info__item elementor-post-info__item--type-terms\">\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-post-info__terms-list\">\n\t\t\t\t<span class=\"elementor-post-info__terms-list-item\">Webinars<\/span>\t\t\t\t<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-aff6ad6 elementor-widget elementor-widget-theme-post-title elementor-page-title elementor-widget-heading\" data-id=\"aff6ad6\" data-element_type=\"widget\" data-widget_type=\"theme-post-title.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Natural Gas Decarbonization Strategies and Impacts<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-53d4cf3 elementor-share-buttons--view-icon elementor-share-buttons--skin-framed elementor-share-buttons--shape-circle elementor-share-buttons--color-custom elementor-grid-0 elementor-widget elementor-widget-share-buttons\" data-id=\"53d4cf3\" data-element_type=\"widget\" data-widget_type=\"share-buttons.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-grid\" role=\"list\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-grid-item\" role=\"listitem\">\n\t\t\t\t\t\t<div class=\"elementor-share-btn elementor-share-btn_facebook\" role=\"button\" tabindex=\"0\" aria-label=\"Share on facebook\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-share-btn__icon\">\n\t\t\t\t\t\t\t\t<i class=\"fab fa-facebook\" aria-hidden=\"true\"><\/i>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-grid-item\" role=\"listitem\">\n\t\t\t\t\t\t<div class=\"elementor-share-btn elementor-share-btn_linkedin\" role=\"button\" tabindex=\"0\" aria-label=\"Share on linkedin\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-share-btn__icon\">\n\t\t\t\t\t\t\t\t<i class=\"fab fa-linkedin\" aria-hidden=\"true\"><\/i>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-grid-item\" role=\"listitem\">\n\t\t\t\t\t\t<div class=\"elementor-share-btn elementor-share-btn_twitter\" role=\"button\" tabindex=\"0\" aria-label=\"Share on twitter\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-share-btn__icon\">\n\t\t\t\t\t\t\t\t<i class=\"fab fa-twitter\" aria-hidden=\"true\"><\/i>\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-1ad489a e-con-full e-flex e-con e-child\" data-id=\"1ad489a\" data-element_type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-5d244c9 e-con-full e-flex e-con e-child\" data-id=\"5d244c9\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e6a808a elementor-invisible elementor-widget elementor-widget-button\" data-id=\"e6a808a\" data-element_type=\"widget\" data-settings=\"{&quot;_animation&quot;:&quot;fadeIn&quot;}\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/my.demio.com\/recording\/BpdKNXzW\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"far fa-play-circle\"><\/i>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Watch Webinar<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cf977a8 elementor-invisible elementor-widget elementor-widget-button\" data-id=\"cf977a8\" data-element_type=\"widget\" data-settings=\"{&quot;_animation&quot;:&quot;fadeIn&quot;}\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Gas-Sector-Decarbonisation_US_Webinar_241022v2-BLOG.pdf\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-download\"><\/i>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">View presentation<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-80c84e8 elementor-widget elementor-widget-theme-post-excerpt\" data-id=\"80c84e8\" data-element_type=\"widget\" data-widget_type=\"theme-post-excerpt.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\tNatural gas decarbonization pathways, including how those pathways would impact the economy and reshape energy markets and bulk system needs. Read on to learn more about the techniques we have developed to optimize natural gas decarbonization from a whole-of-system perspective\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-75659ac elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"75659ac\" data-element_type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-10dd91d c-box e-flex e-con-boxed e-con e-parent\" data-id=\"10dd91d\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4409342 elementor-widget elementor-widget-text-editor\" data-id=\"4409342\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The United States is moving towards a net zero carbon future, with key sectors needing targeted actions to achieve that vision. As the combustion of natural gas creates a significant share of domestic emissions, reaching net zero necessitates decarbonizing the natural gas system and its end uses.<\/p>\n<p>The following sections summarize Energeia\u2019s recent research into natural gas decarbonization pathways, including how those pathways would impact the economy and reshape energy markets and bulk system needs. Read on to learn more about the techniques we have developed to optimize natural gas decarbonization from a whole-of-system perspective.<\/p>\n<h2>Gas Sector Contributors in United States\u2019 Emissions<\/h2>\n<p>The United States rejoined the Paris Agreement in 2021. The federal government also developed a net-zero goal by 2050 via executive order,<a href=\"#_ftn1\" name=\"_ftnref1\"><sup>[1]<\/sup><\/a> though this target was not included in its 2021 Nationally Determined Contribution (NDC), a climate action plan every country must submit every five years as part of the Paris Agreement.<\/p>\n<p>Figure 1 presents the United States\u2019 emission projections by economic sector under business as usual.<\/p>\n<p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cb17c63 elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"cb17c63\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"2334\" height=\"843\" src=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Emissions-Projections-by-Sector.png\" class=\"attachment-full size-full wp-image-5123\" alt=\"\" srcset=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Emissions-Projections-by-Sector.png 2334w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Emissions-Projections-by-Sector-300x108.png 300w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Emissions-Projections-by-Sector-1024x370.png 1024w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Emissions-Projections-by-Sector-768x277.png 768w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Emissions-Projections-by-Sector-1536x555.png 1536w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Emissions-Projections-by-Sector-2048x740.png 2048w\" sizes=\"(max-width: 2334px) 100vw, 2334px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Figure 1\u2013 United State\u2019s Emissions Projections by Economic Sector, Source: Energeia Research, US EIA (2022)<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-90326f3 elementor-widget elementor-widget-text-editor\" data-id=\"90326f3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Whilst electricity generation is rapidly decarbonizing thanks to renewable energy, emissions in other sectors pose challenges. The US Environmental Protection Agency (EPA) estimates that in 2022 emissions from natural gas consumption (like heating and cooking) represented 78% of the direct fossil fuel CO2 emissions from the residential and commercial sector.<a href=\"#_ftn1\">[2]<\/a> Decarbonizing\u00a0<span style=\"font-style: inherit; font-weight: inherit; color: var( --e-global-color-text ); text-align: var(--text-align); background-color: var( --e-global-color-astglobalcolor5 );\">natural gas is therefore crucial for achieving state and federal carbon reduction targets, and local and national organizations need to focus on innovative strategies to decarbonize it.<\/span><\/p>\n<h2>Gas Decarbonization Key Pathways<\/h2>\n<div><span style=\"font-style: inherit; font-weight: inherit; color: var( --e-global-color-text ); text-align: var(--text-align); background-color: var( --e-global-color-astglobalcolor5 );\">Numerous pathways to gas decarbonization exist, with three primary approaches summarized in Table 1 below. The first approach involves altering the fuel itself. This is done by using renewable natural gas (RNG, aka biomethane) or hydrogen blending in existing delivery networks. The second approach utilizes thermal energy networks (TENs) to distribute zero-carbon heat generated from sources such as geothermal networks, waste heat, water bodies, or sewer heat recovery. Lastly, end-use electrification (i.e. the replacement of fossil fuel-based appliances, equipment and systems with electric alternatives powered by renewable energy) can decarbonize most natural gas sector end uses, provided there is sufficient, zero carbon electricity available to meet demand.<\/span><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-970d837 elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"970d837\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1100\" height=\"920\" src=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Summary-of-Key-Gas-Decarb-Pathways.png\" class=\"attachment-full size-full wp-image-5128\" alt=\"\" srcset=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Summary-of-Key-Gas-Decarb-Pathways.png 1100w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Summary-of-Key-Gas-Decarb-Pathways-300x251.png 300w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Summary-of-Key-Gas-Decarb-Pathways-1024x856.png 1024w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Summary-of-Key-Gas-Decarb-Pathways-768x642.png 768w\" sizes=\"(max-width: 1100px) 100vw, 1100px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Table 1 \u2013 Summary of Key Gas Decarbonization Pathways. Source: Energeia Research<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-83fe2db elementor-widget elementor-widget-text-editor\" data-id=\"83fe2db\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Since each approach has its relative strengths and weaknesses, many jurisdictions are adopting a hybrid approach. The hybrid approach integrates one or more of these pathways, i.e. hydrogen and RNG blending, TENs, and end use electrification.<\/p>\n<p>One of the key challenges facing jurisdictions is how to decommission the gas network in the face of mass electrification or a TENs, both from a technological and economic perspective.<\/p>\n<h2>Best Practice in Gas Network Decommissioning<\/h2>\n<div>\n<p>There are two key questions underpinning gas network decommissioning:<\/p>\n<ul>\n<li>How do we define a decommissioning solution with minimal disruption?<\/li>\n<li>How do we determine the best way to recover the associated costs?<\/li>\n<\/ul>\n<p>Energeia researched two major projects exploring gas decommissioning to identify current best practice \u2013 one in Northern California and the other in Austria.<\/p>\n<h2>International Best Practices<\/h2>\n<p>The Northern California project is a collaboration between California\u2019s largest investor-owned utility (IOU), Pacific Gas and Electric (PG&amp;E), and the California Energy Commission (CEC).<a href=\"#_ftn1\" name=\"_ftnref1\">[3]<\/a> The study focused on the Oakland area and explored the effects large-scale gas network decommissioning would have on consumers, especially in economically disadvantaged communities.<\/p>\n<p>The University of Vienna project investigated the most cost-effective decommissioning and refurbishment approaches for existing gas networks. The project included a case study analysis of a portion of the existing Austrian gas network.<a href=\"#_ftn2\" name=\"_ftnref2\">[4]<\/a><\/p>\n<p>Both analyses prioritize the order of staged decommissioning segments of the gas infrastructure under two key considerations:<\/p>\n<ol>\n<li>Hydraulic Feasibility<\/li>\n<li>Cost Effectiveness<\/li>\n<\/ol>\n<p>Figure 3 diagrams the sequencing criteria for decommissioning regional gas networks and the prioritization system is then tested via a series of pilots, such as those listed in Table 4.<\/p>\n<p>\u00a0<\/p>\n<\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7a77200 elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"7a77200\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1408\" height=\"785\" src=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Evaluation-Framework-for-Strategic-Gas-Decommissioning-in-Northern-California-Interim-Report-for-CEC-PIR-20-009.jpg\" class=\"attachment-full size-full wp-image-5124\" alt=\"\" srcset=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Evaluation-Framework-for-Strategic-Gas-Decommissioning-in-Northern-California-Interim-Report-for-CEC-PIR-20-009.jpg 1408w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Evaluation-Framework-for-Strategic-Gas-Decommissioning-in-Northern-California-Interim-Report-for-CEC-PIR-20-009-300x167.jpg 300w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Evaluation-Framework-for-Strategic-Gas-Decommissioning-in-Northern-California-Interim-Report-for-CEC-PIR-20-009-1024x571.jpg 1024w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Evaluation-Framework-for-Strategic-Gas-Decommissioning-in-Northern-California-Interim-Report-for-CEC-PIR-20-009-768x428.jpg 768w\" sizes=\"(max-width: 1408px) 100vw, 1408px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Figure 3 \u2013 Gas Distribution Shutdown Targeting Criteria, Source: Gridworks (2022)<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a9b97b9 elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"a9b97b9\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1433\" height=\"549\" src=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Prioitisation-System-Piloting_Gas-Decommissioning-in-Northern-California-Interim-Report-for-CEC-PIR-20-009.jpg\" class=\"attachment-full size-full wp-image-5126\" alt=\"\" srcset=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Prioitisation-System-Piloting_Gas-Decommissioning-in-Northern-California-Interim-Report-for-CEC-PIR-20-009.jpg 1433w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Prioitisation-System-Piloting_Gas-Decommissioning-in-Northern-California-Interim-Report-for-CEC-PIR-20-009-300x115.jpg 300w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Prioitisation-System-Piloting_Gas-Decommissioning-in-Northern-California-Interim-Report-for-CEC-PIR-20-009-1024x392.jpg 1024w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Prioitisation-System-Piloting_Gas-Decommissioning-in-Northern-California-Interim-Report-for-CEC-PIR-20-009-768x294.jpg 768w\" sizes=\"(max-width: 1433px) 100vw, 1433px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Table 4 \u2013 Prioritization System Piloting, Source: Gridworks (2023)<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6e73fcb elementor-widget elementor-widget-text-editor\" data-id=\"6e73fcb\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Informed by these studies and other research, Energeia developed a gas decommissioning optimization framework to identify the best segmentation approach:<\/p>\n<ol>\n<li>Categorize consumers into defined areas, with priority based on cost per unit of consumption<\/li>\n<li>Categorize distribution system segments and identify those with low-cost decommissioning, e.g. spurs, or high near-term investment needs, failing asset classes<\/li>\n<li>Prioritize decommissioning of the gas segments with the highest cost-to-serve per unit of consumption and lowest net decommissioning costs<\/li>\n<\/ol>\n<p>To accurately understand the impact of removing segments of the gas network, hydraulic load flow modelling is used to quantify the impact and to identify related least cost investments needed to stabilize pressure where needed.<\/p>\n<p>In addition to determining the least cost approach for the distribution network, Energeia researched customer barriers to gas decommissioning. Our key finding, shown in Figure 4, was that customers primarily concerned with the high upfront costs of electrification.<\/p>\n<p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-60252b79 e-flex e-con-boxed e-con e-parent\" data-id=\"60252b79\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-21d7cbde elementor-widget elementor-widget-text-editor\" data-id=\"21d7cbde\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Listen or click through at your own pace<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-6d9418db e-flex e-con-boxed e-con e-parent\" data-id=\"6d9418db\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-3c74bf7c e-con-full e-flex e-con e-child\" data-id=\"3c74bf7c\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-54f0a909 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"54f0a909\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/my.demio.com\/recording\/BpdKNXzW\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"far fa-play-circle\"><\/i>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">WATCH WEBINAR<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-62044176 e-con-full e-flex e-con e-child\" data-id=\"62044176\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-6e1b8526 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"6e1b8526\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Gas-Sector-Decarbonisation_US_Webinar_241022v2-BLOG.pdf\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-download\"><\/i>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">DOWNLOAD PRESENTATION<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-a6c7f7a e-flex e-con-boxed e-con e-parent\" data-id=\"a6c7f7a\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-8052cc9 elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"8052cc9\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"590\" src=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Consumer-Barrier-Identification-and-Markers-1024x590.png\" class=\"attachment-large size-large wp-image-5121\" alt=\"\" srcset=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Consumer-Barrier-Identification-and-Markers-1024x590.png 1024w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Consumer-Barrier-Identification-and-Markers-300x173.png 300w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Consumer-Barrier-Identification-and-Markers-768x442.png 768w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Consumer-Barrier-Identification-and-Markers-1536x885.png 1536w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Consumer-Barrier-Identification-and-Markers-2048x1180.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Figure 4 \u2013 Consumer Barriers Identified in Desktop Research and Interviews, Source: Energeia Research<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-1a2cade e-flex e-con-boxed e-con e-parent\" data-id=\"1a2cade\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1cdc8d1 elementor-widget elementor-widget-text-editor\" data-id=\"1cdc8d1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Based on the above, Energeia identified a range of key strategies for policymakers to address these key consumer barriers, including:<\/p>\n<ul>\n<li>Economic support for consumers to overcome the higher upfront costs of electrification<\/li>\n<li>Educating consumers about the key benefits of electrification to respond to a range of information gaps identified in the above figure<\/li>\n<li>Streamlining the electrification process with turnkey services can assist in addressing the inconvenience barrier from switching over existing gas end uses, and<\/li>\n<\/ul>\n<p>There is also the issue of who should bear the cost of decommissioning and writing down the gas network assets. The Australian Energy Regulator (AER)<a href=\"#_ftn1\">[5]<\/a> has allowed gas network owners to use accelerated asset depreciation to recoup costs sooner while more consumers continue using the gas network. However, this increases and accelerates possibility of a death spiral for the consumers connected to gas and remains an unresolved this point of contention.<\/p>\n<p>A 2024 report by Ofgem in the UK identifies the key issues and potential options for who funds the remaining gas assets. Options for who pays include:<\/p>\n<ul>\n<li><strong>Government<\/strong> \u2013 Write-down and decommissioning costs are recouped from current and future taxpayers, avoiding a premature death spiral;<\/li>\n<li><strong>Gas network investors<\/strong> \u2013 Ofgem highlights this would \u201ccreate asset stranding risk\u201d and \u201clikely not\u00a0be in\u00a0the\u00a0consumer\u00a0interest\u201d;<a href=\"#_ftn1\">[6]<\/a><\/li>\n<li><strong>Future consumers<\/strong> \u2013 Ofgem notes that this will be a relatively small group of consumers, with many falling into \u2018vulnerable\u2019 categories;<\/li>\n<li><strong>Current consumers<\/strong> \u2013 Requires an increase in network charges in advance of actually incurring cost to be put into a decommissioning fund; and<\/li>\n<li><strong>Purchasers of the networks for repurposing<\/strong> \u2013 The decommissioning costs would be passed on to future asset investors, reducing purchase their price.<\/li>\n<\/ul>\n<p>Similar discussions are being held in most other jurisdictions, but few appreciate the impact on decommissioning cost efficiency.<\/p>\n<h2>Optimizing Gas Decarbonization<\/h2>\n<p>Energeia developed an economic model of Australian gas network decommissioning under two shutdown scenarios based on the best practice research above. This model was used to evaluate the effect these different scenarios would have on the speed at which gas network assets are decommissioned and customers electrify.<\/p>\n<p>The two gas network shutdown methods modeled were:<\/p>\n<ul>\n<li><strong>Threshold<\/strong> \u2013 This scenario involves shutting down the gas network by suburb once a certain threshold is reached, based on a percentage reduction in gas consumption compared to the base year. For this analysis, the threshold percent reduction was assumed to be 20%, being the threshold below which it is cheaper to decommission.<a href=\"#_ftn1\">[7]<\/a><\/li>\n<li><strong>Phased<\/strong> \u2013 This scenario shuts down an equal number of suburbs each year over a predefined period, resulting in the steady decommissioning of the entire gas network.<\/li>\n<\/ul>\n<p>This approach may be more realistic from a planning and delivery point of view, but at the cost of potentially higher costs due to premature decommissioning.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-000c1a5 elementor-widget elementor-widget-text-editor\" data-id=\"000c1a5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Energeia developed a set of gas network cost allocation policy scenarios to be tested under the two gas network shutdown scenarios described above using our customer price response model. The cost allocation scenarios aim to test how the rate of consumer electrification is impacted by different methods of recovering gas network asset value and decommissioning cost. The three cost allocation policies Energeia modeled can be seen in Table 6 below.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c7e226f elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"c7e226f\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1020\" height=\"317\" src=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Summary-of-Cost-Allocation-Options.png\" class=\"attachment-large size-large wp-image-5127\" alt=\"\" srcset=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Summary-of-Cost-Allocation-Options.png 1020w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Summary-of-Cost-Allocation-Options-300x93.png 300w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Summary-of-Cost-Allocation-Options-768x239.png 768w\" sizes=\"(max-width: 1020px) 100vw, 1020px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Table 6 \u2013 Summary of Cost Allocation Options, Source: Energeia Research<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c542977 elementor-widget elementor-widget-text-editor\" data-id=\"c542977\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"MsoNormal\">Figure 5 illustrates the impact of these cost allocation options on gas network prices for the phase scenario. The results show that the taxpayer-funded method helped to keep gas prices down, preventing mass consumer defection as costs rise. This approach can minimize the write-down costs for consumer gas appliances and industrial gas assets.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dab9265 elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"dab9265\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"2338\" height=\"847\" src=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Illustrative-Impact-of-Cost-Allocation.png\" class=\"attachment-full size-full wp-image-5125\" alt=\"\" srcset=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Illustrative-Impact-of-Cost-Allocation.png 2338w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Illustrative-Impact-of-Cost-Allocation-300x109.png 300w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Illustrative-Impact-of-Cost-Allocation-1024x371.png 1024w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Illustrative-Impact-of-Cost-Allocation-768x278.png 768w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Illustrative-Impact-of-Cost-Allocation-1536x556.png 1536w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Illustrative-Impact-of-Cost-Allocation-2048x742.png 2048w\" sizes=\"(max-width: 2338px) 100vw, 2338px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Figure 5 \u2013 Illustrative Impact of Cost Allocation Options on Gas Network Prices, Source: Energeia Modeling. Note: Energeia assumed a gas network shutdown timing of 2030 - 2045<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b5d4ebf elementor-widget elementor-widget-text-editor\" data-id=\"b5d4ebf\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Energeia also modeled the impact of different policy support levels for the Phased decommissioning and Accelerated Cost Recovery scenario. Four different rates of policy support from highest to lowest were modeled: no intervention, delayed, balanced, and accelerated. The impacts of these policy scenarios on phase network decommissioning (as a % of 2023 network size) are shown in Figure 6. The analysis shows that the threshold approach can lead to rapid shutdowns, due to consumer defection from higher gas network prices under an accelerated cost recovery policy.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-98558d0 e-grid e-con-boxed e-con e-parent\" data-id=\"98558d0\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-12ed463 elementor-widget elementor-widget-image\" data-id=\"12ed463\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"766\" src=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/2023-Gas-Distribution-Network-Size_Threshold-1024x766.png\" class=\"attachment-large size-large wp-image-5120\" alt=\"\" srcset=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/2023-Gas-Distribution-Network-Size_Threshold-1024x766.png 1024w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/2023-Gas-Distribution-Network-Size_Threshold-300x225.png 300w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/2023-Gas-Distribution-Network-Size_Threshold-768x575.png 768w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/2023-Gas-Distribution-Network-Size_Threshold.png 1053w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Figure 6 \u2013 Illustrative Threshold (Left), Source: Energeia Research<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5d4f455 elementor-widget elementor-widget-image\" data-id=\"5d4f455\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"764\" src=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/2023-Gas-Distribution-Network-Size_Phased-1024x764.png\" class=\"attachment-large size-large wp-image-5119\" alt=\"\" srcset=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/2023-Gas-Distribution-Network-Size_Phased-1024x764.png 1024w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/2023-Gas-Distribution-Network-Size_Phased-300x224.png 300w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/2023-Gas-Distribution-Network-Size_Phased-768x573.png 768w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/2023-Gas-Distribution-Network-Size_Phased.png 1056w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Figure 6 \u2013 Phased (Right) Shutdown, Source: Energeia Research<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-ce0e1fa e-flex e-con-boxed e-con e-parent\" data-id=\"ce0e1fa\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-642f35a elementor-widget elementor-widget-text-editor\" data-id=\"642f35a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2>Takeaways and Recommendations<\/h2>\n<p class=\"MsoNormal\">The key takeaways and recommendations for gas decommissioning (derived from Energeia\u2019s best practice research and innovative analysis) are summarized below.<\/p>\n<p><strong>Key Takeaways<\/strong><\/p>\n<ul>\n<li>As the second largest source of CO2 emissions by fuel type, decarbonizing the United States\u2019 natural gas consumption is essential<\/li>\n<li>Electrification is one option for decarbonization; however, there are other options including green hydrogen, other clean fuels, and TENs<\/li>\n<li>A hybrid approach appears to be the most common current approach, which enables technological advancement<\/li>\n<li>Electrification can deliver full decarbonization of the natural gas system, but it comes at a cost, which includes gas asset write-downs and decommissioning costs<\/li>\n<li>Optimizing decommissioning costs requires a whole-of-system approach (including electricity and gas sectors, and consumer equipment costs)<\/li>\n<li>Gas decommissioning data availability is limited; more robust and accessible data is needed to identify the optimal pathway<\/li>\n<li>Key considerations include decommissioning timing, duration, triggers and segmentation of the gas system, as well as bans, incentives, and cost allocation<\/li>\n<li>Significant decommissioning and write-down costs, including customer appliances, may favor pushing out these costs<\/li>\n<\/ul>\n<p><strong>Key Recommendations<\/strong><\/p>\n<ul>\n<li>Take a wide view of potential pathways to decarbonizing the natural gas system, including TENs and clean fuels to minimize overall costs<\/li>\n<li>Investigate costs for emerging technologies like TENs and zero-carbon fuels and potentially invest in research and development to bring costs down<\/li>\n<li>More data on costs is essential to making the best possible decisions<\/li>\n<li>When optimizing the decarbonization pathway, it is essential to take a whole-of-system approach, including customer appliance costs<\/li>\n<\/ul>\n<p>Watch the full webinar playback below and follow along with the complete presentation.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-754563b e-flex e-con-boxed e-con e-parent\" data-id=\"754563b\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-40e004b elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"40e004b\" data-element_type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d516071 elementor-widget elementor-widget-text-editor\" data-id=\"d516071\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><a href=\"#_ftnref1\" name=\"_ftn1\"><sup>[1]<\/sup><\/a> Executive Order 14057: Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability<\/p>\n<p><a style=\"background-color: #ffffff; transition-property: all;\" href=\"https:\/\/energeia-usa.com\/?p=5112&amp;elementor-preview=5112&amp;ver=1729645455#_ftnref1\" name=\"_ftn1\">[2]<\/a>\u00a0U.S. EPA (07\/08\/2024), Sources of Greenhouse Gas Emissions, see\u00a0<a style=\"background-color: #ffffff; transition-property: all;\" href=\"https:\/\/www.epa.gov\/ghgemissions\/sources-greenhouse-gas-emissions#:~:text=Combustion%20of%20natural%20gas%20and,and%20commercial%20sector%20in%202022\">https:\/\/www.epa.gov\/ghgemissions\/sources-greenhouse-gas-emissions#:~:text=Combustion%20of%20natural%20gas%20and,and%20commercial%20sector%20in%202022<\/a>.<\/p>\n<p style=\"font-size: 19.2px; font-style: normal; font-weight: 400;\"><a style=\"transition-property: all;\" href=\"https:\/\/energeia-usa.com\/?p=5112&amp;elementor-preview=5112&amp;ver=1729645455#_ftnref1\" name=\"_ftn1\">[3]<\/a>\u00a0Tactical Gas Decommissioning Project Overview (2022), see\u00a0<a style=\"transition-property: all;\" href=\"https:\/\/gridworks.org\/2022\/06\/tactical-gas-decommissioning-project-overview\/\">https:\/\/gridworks.org\/2022\/06\/tactical-gas-decommissioning-project-overview\/<\/a><\/p>\n<p style=\"font-size: 19.2px; font-style: normal; font-weight: 400;\"><a style=\"transition-property: all;\" href=\"https:\/\/energeia-usa.com\/?p=5112&amp;elementor-preview=5112&amp;ver=1729645455#_ftnref2\" name=\"_ftn2\">[4]<\/a>\u00a0Designing a model for the cost-optimal decommissioning and refurbishment investment decision for gas networks: Application on a real test bed in Austria until 2050, see\u00a0<a style=\"transition-property: all;\" href=\"https:\/\/www.sciencedirect.com\/science\/article\/pii\/S2211467X23000883\">https:\/\/www.sciencedirect.com\/science\/article\/pii\/S2211467X23000883<\/a><\/p>\n<p style=\"font-size: 19.2px; font-style: normal; font-weight: 400;\"><a style=\"background-color: #ffffff; transition-property: all;\" href=\"https:\/\/energeia-usa.com\/?p=5112&amp;elementor-preview=5112&amp;ver=1729645455#_ftnref1\" name=\"_ftn1\">[5]<\/a>\u00a0Australian Gas Networks Gas distribution access arrangement (2023), see\u00a0<a style=\"background-color: #ffffff; transition-property: all;\" href=\"https:\/\/www.aer.gov.au\/system\/files\/AER%20-%20AGN%202023-28%20-%20Final%20decision%20-%20Attachment%204%20Regulatory%20depreciation%20-%20June%202023_0.pdf\">https:\/\/www.aer.gov.au\/system\/files\/AER%20-%20AGN%202023-28%20-%20Final%20decision%20-%20Attachment%204%20Regulatory%20depreciation%20-%20June%202023_0.pdf<\/a><\/p>\n<p style=\"font-size: 19.2px; font-style: normal; font-weight: 400;\"><a style=\"background-color: #ffffff; transition-property: all;\" href=\"https:\/\/energeia-usa.com\/?p=5112&amp;elementor-preview=5112&amp;ver=1729645455#_ftnref1\" name=\"_ftn1\">[6]<\/a>\u00a0RIIO-3 Sector Specific Methodology Consultation \u2013 Finance Annex (2024), Ofgem https:\/\/www.ofgem.gov.uk\/sites\/default\/files\/2023-12\/RIIO-3%20SSMC%20Finance%20Annex.pdf, pg 69.<\/p>\n<p style=\"font-size: 19.2px; font-style: normal; font-weight: 400;\"><a style=\"background-color: #ffffff; color: #191970; transition-property: all; outline: 0px;\" href=\"https:\/\/energeia-usa.com\/?p=5112&amp;elementor-preview=5112&amp;ver=1729645455#_ftnref1\" name=\"_ftn1\">[7]<\/a>\u00a0The actual threshold requires significant analysis and will be utility specific.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-2d5fafc2 e-flex e-con-boxed e-con e-parent\" data-id=\"2d5fafc2\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-6728c3f8 e-con-full e-flex e-con e-child\" data-id=\"6728c3f8\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-163bd39d elementor-align-center elementor-widget elementor-widget-button\" data-id=\"163bd39d\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/my.demio.com\/recording\/BpdKNXzW\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"far fa-play-circle\"><\/i>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">WATCH WEBINAR<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-a31d615 e-con-full e-flex e-con e-child\" data-id=\"a31d615\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1aad7938 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"1aad7938\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2024\/10\/Gas-Sector-Decarbonisation_US_Webinar_241022v2-BLOG.pdf\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-download\"><\/i>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">DOWNLOAD PRESENTATION<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-9c6a713 e-flex e-con-boxed e-con e-parent\" data-id=\"9c6a713\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7b30ebb elementor-widget elementor-widget-heading\" data-id=\"7b30ebb\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">You may also like\n\n\n\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-d351911 e-flex e-con-boxed e-con e-parent\" data-id=\"d351911\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ad124f3 elementor-grid-3 elementor-grid-tablet-2 elementor-grid-mobile-1 elementor-posts--thumbnail-top elementor-widget elementor-widget-posts\" data-id=\"ad124f3\" data-element_type=\"widget\" data-settings=\"{&quot;classic_columns&quot;:&quot;3&quot;,&quot;classic_columns_tablet&quot;:&quot;2&quot;,&quot;classic_columns_mobile&quot;:&quot;1&quot;,&quot;classic_row_gap&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:35,&quot;sizes&quot;:[]},&quot;classic_row_gap_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;classic_row_gap_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"posts.classic\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-posts-container elementor-posts elementor-posts--skin-classic elementor-grid\" role=\"list\">\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-5601 post type-post status-publish format-standard has-post-thumbnail hentry category-reports tag-consulting tag-decarcarbonisation tag-electrictiy tag-electric-vehicle tag-infrastructure tag-intelligence-and-data tag-transport\" role=\"listitem\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/energeia-usa.com\/moreno-valley-irp\/\" tabindex=\"-1\" >\n\t\t\t<div class=\"elementor-post__thumbnail\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"206\" src=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/Moreno_5314411200_a4bcbb18b8_o-300x206.jpg\" class=\"attachment-medium size-medium wp-image-5602\" alt=\"\" srcset=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/Moreno_5314411200_a4bcbb18b8_o-300x206.jpg 300w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/Moreno_5314411200_a4bcbb18b8_o-1024x702.jpg 1024w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/Moreno_5314411200_a4bcbb18b8_o-768x526.jpg 768w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/Moreno_5314411200_a4bcbb18b8_o.jpg 1140w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/div>\n\t\t<\/a>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<h3 class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/energeia-usa.com\/moreno-valley-irp\/\" >\n\t\t\t\tMoreno Valley Integrated Resource Plan (IRP)\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\t\t<div class=\"elementor-post__excerpt\">\n\t\t\t<p>Energeia was engaged by Moreno Valley Utility (MVU) to develop their 2023-25 Integrated Resource Plan (IRP). As part of this process, Energeia will be analyzing\t\t<\/div>\n\t\t\n\t\t<a class=\"elementor-post__read-more\" href=\"https:\/\/energeia-usa.com\/moreno-valley-irp\/\" aria-label=\"Read more about Moreno Valley Integrated Resource Plan (IRP)\" tabindex=\"-1\" >\n\t\t\tRead More \u00bb\t\t<\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t<\/article>\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-5585 post type-post status-publish format-standard has-post-thumbnail hentry category-projects tag-consulting tag-electrictiy tag-electric-vehicle tag-intelligence-and-data\" role=\"listitem\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/energeia-usa.com\/bess-forecasting\/\" tabindex=\"-1\" >\n\t\t\t<div class=\"elementor-post__thumbnail\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"169\" src=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/shutterstock_2263158027-300x169.jpg\" class=\"attachment-medium size-medium wp-image-5586\" alt=\"\" srcset=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/shutterstock_2263158027-300x169.jpg 300w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/shutterstock_2263158027-1024x576.jpg 1024w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/shutterstock_2263158027-768x432.jpg 768w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/shutterstock_2263158027-1536x864.jpg 1536w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/shutterstock_2263158027-2048x1152.jpg 2048w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/div>\n\t\t<\/a>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<h3 class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/energeia-usa.com\/bess-forecasting\/\" >\n\t\t\t\tBESS Forecasting for an Array of Cities Nationwide\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\t\t<div class=\"elementor-post__excerpt\">\n\t\t\t<p>Energeia\u2019s research and data engineering expertise proved essential in building a comprehensive custom database of utility grid infrastructure spatial data for each target market.<\/p>\t\t<\/div>\n\t\t\n\t\t<a class=\"elementor-post__read-more\" href=\"https:\/\/energeia-usa.com\/bess-forecasting\/\" aria-label=\"Read more about BESS Forecasting for an Array of Cities Nationwide\" tabindex=\"-1\" >\n\t\t\tRead More \u00bb\t\t<\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t<\/article>\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-5560 post type-post status-publish format-standard has-post-thumbnail hentry category-projects tag-consulting tag-electrictiy tag-intelligence-and-data tag-policymakers\" role=\"listitem\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/energeia-usa.com\/ladwp-develops-ihrp\/\" tabindex=\"-1\" >\n\t\t\t<div class=\"elementor-post__thumbnail\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"147\" src=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/shutterstock_2432230045-300x147.jpg\" class=\"attachment-medium size-medium wp-image-5561\" alt=\"\" srcset=\"https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/shutterstock_2432230045-300x147.jpg 300w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/shutterstock_2432230045-1024x500.jpg 1024w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/shutterstock_2432230045-768x375.jpg 768w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/shutterstock_2432230045-1536x750.jpg 1536w, https:\/\/energeia-usa.com\/wp-content\/uploads\/2025\/05\/shutterstock_2432230045-2048x1000.jpg 2048w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/div>\n\t\t<\/a>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<h3 class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/energeia-usa.com\/ladwp-develops-ihrp\/\" >\n\t\t\t\tLADWP Develops an Integrated Human Resources Plan to Aid the LA100 Program\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\t\t<div class=\"elementor-post__excerpt\">\n\t\t\t<p>Los Angeles Department of Water and Power (LADWP) gathered a team of leading industry experts, including Energeia, to develop an Integrated Human Resources Plan (IHRP)\t\t<\/div>\n\t\t\n\t\t<a class=\"elementor-post__read-more\" href=\"https:\/\/energeia-usa.com\/ladwp-develops-ihrp\/\" aria-label=\"Read more about LADWP Develops an Integrated Human Resources Plan to Aid the LA100 Program\" tabindex=\"-1\" >\n\t\t\tRead More \u00bb\t\t<\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t<\/article>\n\t\t\t\t<\/div>\n\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Natural gas decarbonization pathways, including how those pathways would impact the economy and reshape energy markets and bulk system needs. Read on to learn more about the techniques we have developed to optimize natural gas decarbonization from a whole-of-system perspective<\/p>\n","protected":false},"author":5,"featured_media":5117,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2],"tags":[11,12,27],"class_list":["post-5112","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-webinars","tag-consulting","tag-intelligence-and-data","tag-natural-gas"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.0 - 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