New fossil gas-fired power generation in Europe may not be economic over its lifetime
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
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