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Policy & Regulation

UK power sector – a new path for gas?

The prospects for gas-fired power generation are looking brighter in the UK thanks to new government policies and lower prices The prospects for gas-fired power generation are looking brighter in the UK thanks to new government policies and lower prices.
By Catriona Scott 17 December 2015 Europe & Russia / Supply & Demand 0 24305
Langage gas fired power station, Devon, United Kingdom. The prospects for gas-fired power generation are looking brighter in the UK thanks to new government policies and lower prices. (Centrica)

Gas is struggling in the European power sector because its comparatively high cost means it is losing out against cheap coal. This has been particularly true in recent years as the price of coal has fallen in Europe, boosting its use in power generation. 

Although coal use in power had been on a declining trend, over the last few years the fuel has won against gas. Coal’s share of fuel inputs into power generation was over 40% in 2006, and then fell by more than 30%...