Gas-Fired Power Is Now Cheaper Than Offshore Wind Again
JANUARY 25, 2023
tags: gas, wind power
By Paul Homewood
There are increasingly strong signs that European gas prices are back to pre-war lows and may stop that way. [TTF is the European benchmark]. As Timera explain, part of the reason is demand destruction in Europe and Asia, with gas replaced by coal and slowing economic growth in China. Gradually as well LNG capacity is starting to expand.
Catalyst Digital Energy, the UK energy consultants, agree, with day ahead UK prices down to 178p/therm at the end of December.
Naturally this has an effect on consumer prices for gas, but there is also an effect on power prices too, and these are back down to £160/MWh on the wholesale market.
You will recall the many references a few months ago to the claim that gas power is now nine times as expensive as wind power. As was pointed out at the time, this was based on a very short spike in gas prices in August. For most of last year gas was much cheaper than that.
https://notalotofpeopleknowthat.wordpress.com/2023/01/25/gas-fired-power-is-now-cheaper-than-offshore-wind-again/
