In Today In Energy, the EIA reports that, this winter, coal may surpass natural gas as the most common fuel to produce electricity… Low prices of natural gas relative to coal pushed gas ahead in April, 2015… Here is the EIA:
“Spot prices for natural gas have generally been rising in recent weeks. The cost of natural gas delivered to electric generators, which includes both spot market and contract purchases, has been increasing as well. The latest available data indicate that the generation cost of natural gas averaged $21.30/MWh in August, which was nearly identical to the cost of coal.
EIA’s November Short-Term Energy Outlook (STEO) projects that natural gas prices delivered to the power sector will continue rising. The STEO forecasts the average natural gas generation cost to reach a seasonal peak of nearly $31/MWh in February, which would be about 40% higher than the projected cost of coal for that month on a national average basis. Because coal costs vary widely across regions, relative fueling costs in particular markets may differ significantly from national averages.
The higher costs of natural gas relative to coal are likely to encourage the industry to use more coal to fuel electricity generation than in the recent past. Forecast cooler winter temperatures, especially in areas where coal is dominant, also contribute to higher projected coal use in power generation. If winter temperatures end up warmer than forecast, natural gas prices would likely stay low, which would reduce the incentive to use more coal-fired generation.”
Here the link: http://www.eia.gov/todayinenergy/detail.php?id=28832
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