BAKU, Azerbaijan, Sept.21
By Leman Zeynalova – Trend:
As clean energy transitions advance on a path towards net zero emissions, global gas demand will start to decline, but it will remain an important component of electricity security, Trend reports with reference to the International Energy Agency (IEA).
IEA notes in its latest statement that this is especially the case in countries with large seasonal variations in electricity demand.
“The links between electricity and gas markets are not going to go away anytime soon. Gas remains an important tool for balancing electricity markets in many regions today,” said the IEA.
European electricity prices have climbed to their highest levels in over a decade in recent weeks, rising above 100 euros per megawatt-hour in many markets. In Germany and Spain, for example, prices in September have been around three or four times the averages seen in 2019 and 2020. This increase has been driven by the surge in gas, coal and carbon prices in Europe. The strong rise in gas prices led electricity providers in a number of European markets to switch from gas to coal for power generation – a trend that would have been more pronounced if it had not been for the increase in the price of carbon emission allowances on the European market.
“Today’s situation is a reminder to governments, especially as we seek to accelerate clean energy transitions, of the importance of secure and affordable energy supplies – particularly for the most vulnerable people in our societies. Well-managed clean energy transitions are a solution to the issues that we are seeing in gas and electricity markets today – not the cause of them,” said IEA Executive Director Fatih Birol.
---
Follow the author on Twitter: @Lyaman_Zeyn