Back to OurEnergyLibrary search




Put Gas on Standby

Put Gas on Standby

Full Title: Put Gas on Standby
Author(s): Jonathan Sims, Catharina Hillenbrand von der Neyen, Durand D‘souza, Lily Chau, Nicolás González-Jiménez, Lorenzo Sani
Publisher(s): Carbon Tracker Initiative
Publication Date: October 19, 2021
Full Text: Download Resource
Description (excerpt):

Events in 2021 have brought the extreme levels of price and supply volatility present in the global gas market to the fore of discussions over future energy system dynamics.

Wholesale gas prices have risen to record highs across key supply hubs, highlighting the levels
of market risk that gas-fired power stations are exposed to, and demonstrating the urgent
requirement for increased investment in alternative forms of flexible supply, which are steadily
emerging.

Even before this year’s crisis however, gas-fired power stations across Europe and the US were
already confronting declining operating profitability and rapidly growing competition from
low carbon sources. A steady shift towards the primary use of such technologies is vital if net
zero emissions goals are to be achieved.

While small amounts of unabated gas-fired capacity may well be required to remain available
in these regions and to sit predominantly idle as back up peaking capacity to ensure long-
term system supply security, we believe that this should be the limit to such units’ future role.
This report aims to demonstrate that stakeholders committing to the long-term funding of such
assets are already risking the loss of billions of dollars, while the risks of continued investment
will only grow further.

All statements and/or propositions in discussion prompts are meant exclusively to stimulate discussion and do not represent the views of OurEnergyPolicy.org, its Partners, Topic Directors or Experts, nor of any individual or organization. Comments by and opinions of Expert participants are their own.

Sign up for our Press Release Distribution List

    Your Name (required)

    Your Email (required)

    Please sign me up to receive press releases from OurEnergyPolicy.org.