February 07, 2023 10:33 GMT
IEA Forecast Coal to Gas Switching Potential
The steep decline in European gas prices, together with the strong gains in carbon prices are putting coal and gas-fired generation in closer competition for 2023 according to the IEA.
- TTF prices collapsed by close to 60% since last mid-December, one of its steepest drops on record.
- Rotterdam coal prices meanwhile were more resilient, while carbon prices rose to above €90/t mark.
- The combination of these factors is gradually changing the outlook for fuel-switching dynamics in the power sector, with the most efficient gas-fired plants now entering the coal-to-gas switching range.