BAKU, Azerbaijan, Jan.12
By Leman Zeynalova – Trend:
Natural gas and coal prices are expected to ease from their current levels in 2022 as supply constraints ease, but to remain higher than their pre-pandemic levels, Trend reports with reference to the World Bank (WB).
“Natural gas and coal prices rose particularly sharply in 2021, even though coal prices moderated toward the end of the year. Natural gas prices in Europe saw particularly steep increases, reaching record highs in December 2021,” reads the Global Economic Prospects report released by WB.
WB experts note that the surges in crude oil, natural gas, and coal prices in 2021 have increased the relative price competitiveness of renewables such as solar and wind, thereby providing an incentive to invest in low-carbon energy sources.
“However, they can also encourage investment in the production of fossil fuels in energy exporters. Demand has been lifted by firming global activity as well as adverse weather, which, in some countries, increased energy use for heating and cooling, disrupted coal production, and reduced hydroelectric power,” noted the World Bank.
The report shows that reflecting these developments, the cost of electricity in many countries has also risen sharply, especially in Europe.
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