No end in sight for mothballed power plants

The continuing rise in the price of gas being imported from Russia means European utilities will be unable to put mothballed gas-fired power plants back into operation.
Mothballed gas-fired power plant owned by RWE
Bloomberg reports that rates for Russian fuel at the German border last month jumped the mostà‚ in seven years, extending their gain since September to almost 50 percent, according to the International Monetary Fund.à‚ The price of fuel from Moscow-based Gazprom PJSC may increase further even as prices on traded hubs decline, according to analysts including Deutsche Bank AG.

The clean-dark spread, a measure of gas power plant profitability, has been negative in Germany since January 2012, according to Bloomberg. That has led to the closure of plants, leaving the fuel trailing coal, nuclear, wind and biomass in electricity generation last year.à‚ 

“Rising gas prices crush the hope that German utilities could bring back previously mothballed gas-fired power stations any time soon,”à‚ said Elchin Mammadov, an energy analyst at Bloomberg Intelligence in London.

No posts to display