- Electricity generators in Europe turn to coal as gas shortages continue
- Limited supplies from Russia worsens gas shortages
- Energy prices on the increase
Electricity generators in Europe have turned to coal as a solution for the current gas shortages on the continent. The recent gas shortages caused by the depleted reserves and low supplies from Russia and Norway has forced electricity generators to turn to coal for electricity generation.
Marco Saalfrank, Head of Continental Europe merchant trading at Axpo Solutions AG, said, “We are observing some tightness also in the coal market,” On the other hand, coal-fired power plants are turning in profits as production increases. Energy prices in Europe have experienced a gradual increase as the continent pushes for a more ambitious climate deal.
Dale Hazelton, Head of thermal coal at Wood Mackenzie, stated that the price increase is due to a combination of energy shortages across both fossil and renewable sources of energy. “Gas supply is short, coal supply is short and renewables aren’t going great and we are now in this crazy situation; it’s the only way we can describe it,” Hazelton said.