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Renewables and Nuclear to Limit Gas Demand for Power Gen in 2024

NATURAL GAS

European gas demand for power could be limited in 2024 due to sustained hydro output, improving nuclear-plant availability and a rising share of wind and solar generation according to Bloomberg.

  • A 14-17% decline in demand seen in 2023 is expected to be extended.
  • A structurally tight supply outlook will maintain market sensitivity to upswings in European gas demand with planned coal-plant closings reducing dispatchable power capacity.
  • Spark spreads could remain above dark spreads amid falling gas prices and elevated carbon costs.
  • European gas demand fell by 18-20% over 2021-23 due to price driven cuts and abnormally mild weather.


Source: Bloomberg

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