More gas than coal?

Blue Peter · Post by **Blue Peter** » 01 May 2014, 09:41

Looking at the grid for the last few days, we've suddenly started using more gas than coal.

Has there been any change to cause this? I was under the impression that cheap coal, and the need to get coal power station hours in quickly, explained why coal was generating most of our electricity. So, has coal suddenly risen in price (or gas fallen)? Or have one or more coal power stations closed recently? Or...?

Peter.

BritDownUnder · Post by **BritDownUnder** » 01 May 2014, 09:54

Very low levels of wind generation in the last few days could be one reason.

Post by **adam2** » 01 May 2014, 10:54

Also gas prices have fallen significantly from about 70 pence a therm to about 50 pence.
SOME gas for power generation is purchased in advance on fixed price contracts, but extra gas beyond that contracted for, can be purchased as needed at the prevailing market price.

PS_RalphW · Post by **PS_RalphW** » 01 May 2014, 11:01

Also more coal power stations are approaching end of (regulated) life - They have been using up their allotted hours before EU environmental constraints require them to shut permanently.

biffvernon · Post by **biffvernon** » 01 May 2014, 11:59

Ferrybridge stopped, permanently, two of the four coal fired units on 31st March, I believe.

RenewableCandy · Post by **RenewableCandy** » 01 May 2014, 16:23

Ralph says the USA's got gas coming out of their ears. Or something.

Post by **adam2** » 01 May 2014, 16:44

RenewableCandy wrote:Ralph says the USA's got gas coming out of their ears. Or something.

It is certainly relatively cheap and plentiful at present in the USA.
Fracking does work, to an extent in the short term. Considerable doubts exist though regarding supply in the medium and longer term.

Blue Peter · Post by **Blue Peter** » 01 May 2014, 16:57

RenewableCandy wrote:Ralph says the USA's got gas coming out of their ears. Or something.

Isn't that part of the reason coal is cheap - cheap fracked gas has replaced coal for some generation in the US, leaving US coal producers looking for other markets?

Peter.

Blue Peter · Post by **Blue Peter** » 01 May 2014, 17:02

This page seems to show the change from coal to gas this past month quite nicely.

Clive Best does a nice other couple of charts from Gridwatch too,

Peter.

biffvernon · Post by **biffvernon** » 01 May 2014, 20:24

"Shale Drillers Feast on Junk Debt to Stay on Treadmill"

Here's a perceptive article about the way the money goes round.

“It’s a perfect set-up for investors to lose a lot of money,” Gramatovich said. “The model is unsustainable.”

http://www.bloomberg.com/news/2014-04-3 ... dmill.html

I suppose it was too much to hope for that anyone should learn from the sub-prime mortgage lending fiasco.