January 27, 2023 08:49 GMT
Gas-Coal Fuel Switching Could Return In EU Power Market
Declining European natural gas prices in recent weeks have supported some competition between gas and coal in the power sector, which could lift gas demand in the spring and summer according to Argusmedia.
- The TTF front-month contract was on 19 January only €5.63/MWh above the point at which it would be more profitable to run 55pc-efficient gas-fired units than 40pc-efficient coal-fired units — the closest the price has come to that support level since 8 June last year.
- Above average EU gas storage levels, milder weather and lower gas demand have weighed on TTF gas prices since the start of the heating period. The TTF front-month averaged just under €63/MWh on 1-25, compared with €118/MWh in December.
- EU gas storage levels stood at 74.81% of capacity on 25 Jan, AGSI data show.
- TTF FEB 23 down -3.4% at 52.93€/MWh