Irena calls time on role of gas in Europe’s transition
Deteriorating economics undermine case for gas-fired power plants as a back-up for renewables, agency says
Worsening economics mean gas-fired power generation is unlikely to play a significant role in Europe’s energy transition, even as peaking capacity to back up intermittent renewables, according to the International Renewable Energy Agency (Irena). The economics of gas-fired generation were deteriorating sharply even before the current price spikes, with the growing share of low-cost renewables curbing the operating hours of gas power plants, Irena says in a new report, titled Renewable Power Generation Costs in 2021. This opens the way for greater deployment of balancing technologies such as hydrogen, pumped storage and batteries, the report says. “Natural gas is losing its transition role in
Also in this section
23 April 2024
Europe must unlock cross-border CO₂ trade if it wants to build a viable CCS sector for the long term
16 April 2024
US and European oil majors snap up smaller players and look to accelerate development in a region deemed to possess all the key elements for successful CCUS deployment
15 April 2024
Demand for credits seen rising 20% this year despite issues around integrity and standardisation
11 April 2024
Volatile allowance prices and small size of voluntary market undermine ability to drive investment, says Oxford Institute for Energy Studies