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July 21, 2026Asia-Pacific Journal of Business & Commerce

Does Renewable Energy Expansion Substitute for Gas Demand in the Power Sector? Evidence from Flexibility Demand

Seojin Lee Hong Chong Cho

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Key Points

This research analyzes how the expansion of renewable energy influences gas demand patterns in the power sector.
Utilized daily data from January 2023 to December 2025
Estimated traditional time series models alongside XGBoost models
Examined the sensitivity of gas demand to load variability indicators
Gas demand responds more sensitively to load variability than simple increases in renewable energy generation
During high electricity demand periods, gas demand increases nonlinearly to address expanded load variability
Gas demand may remain stable or even increase under conditions of rising electricity demand and supply uncertainty

Implication

Analysis reveals that increased renewable energy impacts gas demand variability, suggesting strategic resource roles.

Abstract

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Cite This Study

Lee et al. (2026) studied this question.

synapsesocial.com/papers/6a61aeeefaa9903c51169e60 https://doi.org/10.35183/ajbc.2026.07.18.2.31

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