Report claims cheap coal power diminishing gas prospects

According to research from Deutsche Bank coal prices will need to rise by $80 per tonne in order for gas power generation to compete.

Because of the ongoing decline in European coal prices coupled with a tight gas market, gas power remains expensive.
Gas power plant
"In terms of comparative value to a power generator, natural gas is currently trading at a level which is so expensive relative to coal that coal prices would have to rise to $163 per tonne in Europe and $169 per tonne in the UK in order to restore competitiveness to natural gas for baseload power generation," Deutsche Bank said in a research note.

The situation presents problems to the European Union's energy policy which wants to see a shift from coal-fired power generation towards gas, which sends fewer emissions into the atmosphere than electricity generated from coal.

The bank also said that current gas prices were far too high to create an incentive to invest into new gas-fired power generation, a move policy makers desire in order to move away from coal-fired capacity to meet European and national emissions reduction targets.

For more gas power generation news

Recommend this article Recommend this article () Yo recommended this article Yo recommended this article ()
Follow Power Engineering International on Twitter

Editor's Picks

Command and Control Centre

Combating the emerging cyber threat to power infrastructure

Earlier this month Power Engineering International reported on the news of the detection of a cybercrime operation that po...

White Rose CCS is biggest winner in EC €1bn funding

The European Commission has awarded funding worth a total of €1bn ($1.3bn) to 19 clean energy projects, with the biggest w...

Asia to outpace Europe in renewables investment says BNEF

The Asia-Pacific region will spend $3.6 trillion between now and 2030 to meet its power demands, and two thirds of that su...
Drax

Analysis demonstrates greater diversity in UK power market

The latest independent analysis of the UK electricity market shows that while coal has retained its top share of the power...
High-performance clean coal tech

MHPS and Zhejiang in clean coal joint venture

Mitsubishi Hitachi Power Systems, Ltd. (MHPS) has signed a contract with Zhejiang Feida Environmental Science & Techno...

PEI Magazine Issues



>> Current Issue           >> Past Issues

Latest Wire News

Umbra Applied Technologies Group Begins Oil Production

Umbra Applied Technologies Group Begins Oil Production

Scorpio Bulkers Inc. Announces Second Quarter Earnings Release Date

Scorpio Bulkers Inc. Announces Second Quarter Earnings Release Date

Total Safety Acquires Z-Safety Systems

Total Safety Acquires Z-Safety Systems

Lithium Exploration Group CEO Distributes July Newsletter Part 2 of 3 -- Oilfield Waste

Lithium Exploration Group CEO Distributes July Newsletter Part 2 of 3 -- Oilfield Waste

National Automation Services, Inc. Updates Shareholders on Progress of Up-Listing

National Automation Services, Inc. Updates Shareholders on Progress of Up-Listing

Editorial Guides

How to cut your OPEX

How to cut your OPEX In a constantly evolving electricity market, factors such as over capacity and low coal costs can pu...

Alstom Editorial Guide: Thailand to showcase latest upgrade of Alstom's GT26 in combined-cycle

Read all about Alstom's new advanced GT26 gas turbine in the North Bangkok CCPP expansion project online with the Power En...

PLEXOS® Integrated Energy Model – Leading the Field in Energy Market Modelling

PLEXOS® Integrated Energy Modelling is an advanced software tool that employs the latest mathematical programming methods ...

Power Engineering International

Whitepapers

Evaluating cogeneration for your facility: A look at the potential energy-efficiency, economic and environmental benefits

The energy-efficiency, economic and environmental benefits of cogeneration are the subject of this in-depth white paper. The paper argues that producing electricity and heat/cooling from the same f...

The Effect of Moisture on the Breakdown Voltage of Transformer Oil

Power transformers utilize oil as a heat transfer medium and a dielectric material, together with cellulose. Breakdown voltage (dielectric strength) is one of the most important parameters of trans...

Improving Mission Critical Cooling Systems With More Reliable Level Sensing

The choice of coolant level sensor may seem like an insignificant detail when designing complex machinery such as emergency generators and cranes, but if this sensor fails, the operator has no warn...

Steps Towards a Low Carbon Future: Solutions and Technologies That Will Support the Global Revolution Required

A smart grid is becoming more and more essential as clean energy becomes more dominant. In addition, the demand for electricity is expected to treble the ability to supply it over the next decade. ...

Latest Digital Edition

  Power
  Engineering
  International
Look Inside >
Cover
Current Issue

Article Archives for Power Engineering International Magazine

Latest Energy Jobs

View more Job Listings >>