Gas and Coal Competition in the EU Power Sector
Thematic studies June 2014 213 pages PDF format
Despite its many assets, a confluence of factors – including flat electricity demand, rising use of renewable energy sources, falling wholesale electricity market prices, high gas prices relative to coal and low CO2 prices – has eroded the competitiveness of natural gas in the EU power sector. The share of natural gas in the EU electricity mix has decreased from 23% in 2010 to 20.5% in 2012. By contrast, coal-fired power stations have been operating at high loads, increasing coal demand by the sector. This thorough analysis by CEDIGAZ of gas, coal and CO2 dynamics in the context of rising renewables is indispensable to understand what is at stake in the EU power sector and how it will affect future European gas demand.