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

Follow Power Engineering International on Twitter




Editor's Picks

EnAppSys Capacity Margin

Return of high winds set to boost UK capacity margin

The fire that saw half of the Didcot B power plant taken off the grid this week will not threaten the UK’s energy security...
Dr Andrew Minchener OBE

World Bank ‘misguided’ on decision not to bankroll coal

The head of the IEA Clean Coal Centre says moves by the World Bank and other institutions to end investment in coal-fired ...

Almunia says Hinkley approval sets no precedent

European Commission vice-president Joaquín Almunia said today that the EC’s approval for Hinkley Point C nuclear plant in ...
Nuclear power plant

E.ON files for $481m in damages against German government

Angela Merkel’s German government is facing a $481m compensation claim from E.ON over regulations imposed on the company’s...

China tops renewables investment poll but UK slips down

China is now the top destination for renewables investment in the world according to an influential poll published today.

PEI Magazine Issues



>> Current Issue           >> Past Issues

Latest Wire News

BASF Brings Hands-On Science to More Than 2,000 Schoolchildren During National Chemistry Week

BASF Brings Hands-On Science to More Than 2,000 Schoolchildren During National Chemistry Week

SCS-Certified Products Among Top 10 Products Honored by BuildingGreen at Greenbuild 2014

SCS-Certified Products Among Top 10 Products Honored by BuildingGreen at Greenbuild 2014

Arabella Exploration Backs Into Additional Acreage

Arabella Exploration Backs Into Additional Acreage

FLIR Systems Announces Third Quarter 2014 Financial Results

FLIR Systems Announces Third Quarter 2014 Financial Results

Despite Declining Demand, BASF Increases Sales and Earnings in the Third Quarter of 2014

Despite Declining Demand, BASF Increases Sales and Earnings in the Third Quarter of 2014


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 ...

Buyers Guide Companies

AVC Specialists Inc

POWERCON 900 electrostatic precipitator voltage controllers, RAPPERCON 9...

Huggenberger AG

Standardkessel-Baumgarte Group

Founded more than 80 years ago, Standardkessel and Baumgarte are today a...

URS

URS plans, designs, engineers, constructs, retrofits, and maintains powe...

Moisttech

Dynamic Systems Inc

Barcode Tracking Includes: > Equipment & Tool > Inventory > ID Badge Sys...

EPG Enginuity Portable Grid

Enginuity Portable Grid (EPG) designs and manufactures unique rental gra...

Mid America Engine Inc

Mid-America Engine is a distributor and reseller of new and used, diesel...

Paharpur USA

Manufactures water cooling towers, air cooled heat exchangers (fin fan c...

M+M Turbinen-Technik GmbH

M+M Turbinen-Technik designs and manufactures steam turbines and package...

Buyers Guide Products

Gas turbine maintenance / overhaul / (blade) repair / outage management

Outage delivery/managementProject manageme...

Hydro turbine maintenance / repair / overhaul / rebuild service

Outage support in workshop/on-site Site i...

Inspection service (Nondestructive testing and evaluation)

Life time evaluationPhased array /Ultrason...

Spare parts manufacturing / Re-engineering / CNC / CMM / Machining / workshop service

CMM/laser scanning technology (workshop, r...

Steam turbine maintenance / overhaul / (blade) repair / outage management

Outage delivery/managementOn-site inspecti...

Transformer Oil Moisture Measurement Instruments

Vaisala offers a wide variety of online tr...

DPT145 Multiparameter Transmitter for SF6 Gas

DPT145 is a unique innovation that enables...

ASCR Advanced SCR

80% + NOx Reduction - Lower Capital and Op...

SNCR - NOxOUT and HERT

25-50% NOx reduction - Urea-based Customiz...

TIFI Targeted In-Furnace Injection

Improve Fuel Flexibility - Reduce Slagging...

Power Engineering International

Whitepapers

Understanding Moisture Dynamics in Power Transformers

How to lower your total cost of ownership on DC Control Power

In this whitepaper, we look at implementing battery management solutions and how smart battery management effectively lowers the total cost of DC Control power systems and the risk of their failure...

Portfolio Optimization by PLEXOS

To achieve Portfolio Optimization, PLEXOS performs the Security Constrained Unit Commitment and Economic Dispatch using Mixed Integer Programming (MIP) to minimize a cost function subject to all op...

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 >>