End of inflexible generation? – Coal unprofitable while flexible gas and storage make profit

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Electricity market price volatility has increased, creating an opportunity for flexible generation and storage. The Wärtsilä Energy Transition Lab shows that combined cycle gas turbine profitability is down 36% from 1 January to 9 May 2020, coal generation is making a loss difference -229% in the UK. In contrary to the UK, German combined cycle gas turbine profits show a positive development, which can to a large extent be contributed to heavily reduced gas and CO2 prices, making cyclic operation feasible. However, flexible assets have increased their profits from day ahead and intraday markets by a staggering 471% for the first 5 months of the year. It stands to reason that flexibility is being rewarded and that there is an unprecedented opportunity on the European markets for very flexible plants right now – a trend that predicts well for a faster energy transition.

Presented by

Björn Ullbro

Björn Ullbro

Moderator
Vice President, Africa & Europe
Wärtsilä Energy Business

Matti Rautkivi

Matti Rautkivi

Speaker
Director, Business Development
Wärtsilä Energy Business

Stefan Lechtenböhmer

Stefan Lechtenböhmer

Guest Speaker
Director, Future Energy and Industry Systems
Wuppertal Institut

 
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