Monday, 27 January 2020

Natural Gas Price Drop to Cut Coal Market Share for Power in EU - Bloomberg

Natural Gas Price Drop to Cut Coal Market Share for Power in EU - Bloomberg:

Cheaper natural gas prices this year are likely to cement Europe’s shift away from coal as a fuel for producing power.

Abnormally mild winter weather has cut demand for the fuel as a flood of new supplies entered the world’s biggest gas market. That along with higher costs for carbon-emissions allowances has tilted the economics of generating electricity away from coal and toward using more gas.

The shift has been welcomed by policy makers led by German Chancellor Angela Merkel’s administration, which is looking at ways to accelerate the closure of its coal industry. Its priority is keeping power flowing while reaching ambitious pollution targets in the Paris Agreement on climate change. A lower cost for gas helps along that process.


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