INTER-FUEL COMPETITION IN ELECTRIC POWER GENERATION: COAL OR NATURAL GAS

Dmitry Gordeev

Russian Economic Development, 2016, issue 4, 45-49

Abstract: One of the most disputable aspects of Russia’s energy markets reform is the feasibility of achieving grid parity between different energy sources, of their socalled inter-fuel compe on level indices. Thus, in particular, one of the possible future components of the Russian market for natural gas can be the inter-fuel compe on level reached by natural gas and coal in electric power generation. The results of a simplified analysis of current electric energy gen era on costs demonstrate that at present, natural gas has a huge competitive advantage over coal in electric power genera on. At the same me, medium-term moderate growth of prices of natural gas in the domes c market will not result in a switchover, by electric power producers, from natural gas to coal.

Keywords: Oil and Gas; Russian Economy (search for similar items in EconPapers)
JEL-codes: L71 L72 (search for similar items in EconPapers)
Date: 2016
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