A second important market likely to strengthen in near future years is electric power generation. That market is turning strongly away from coal in the U.S. and Europe and toward alternatives like solar and wind which are non-base load sources, meaning they work during some days and some hours a lot better than others. When they don’t work, the generating plants must have “peaking capacity” to bring them quickly up to nameplate capacity. Natural gas is the way to obtain short term bursts of generating capacity.
An example of this was described in the Oil & Gas Journal (4/7/08) in an article about the enormous new additions to wind power being constructed in Texas and Oklahoma as follows (p.19):
“Between Amarillo and Midland, capacity factors can rise of fall by 60% within 12 hrs. So by 2011, when Texas has about 10,000 Mw of installed wind capacity, power generation might rise or fall by 6,000 Mw in half a day, requiring the sudden start-up or short-down of 15 - 20 peaking plants
to balance the load. “
Are wind and solar key parts of America’s coming energy revolution? If so, count on natural gas as well.
http://seekingalpha.com/article/83143-solar-and-wind-will-drive-natural-gas-up