The natural gas glut is reshaping electricity markets
Wind, nuclear, and coal all look expensive compared to natural gas generation.
Wind, nuclear, and coal all look expensive compared to natural gas generation.
Over at Bloomberg, Julie Johnsson and Mark Chediak document how low natural gas prices are reshaping聽electricity markets. Wind, nuclear, and coal all look expensive compared to natural gas generation:
The hard question, of course, is whether low natural gas prices will persist, particularly if everyone decides to rush into gas-fired generation:
鈥淭he way to make $4 gas $8 gas is for everyone to go out and build combined-cycle natural-gas plants,鈥� Michael Morris, non-executive chairman of American Electric Power (AEP) Inc., said at an industry conference in November. 鈥淲e need to be cautious about how we go about this.鈥�
The whole article is worth a read if you follow these issues. (ht: Jack B.)