Europe's Soaring Gas Bill Is Sending Utilities Back to Coal
Europe’s energy crisis isn’t over. Gas prices remain punishingly high across the continent as Europeans stare down the barrel of a long winter. In response to back-to-back-to-back energy crises stemming from Europe’s continued reliance on imported liquefied natural gas against the backdrop of ongoing global geopolitical volatility, Europe’s leaders are pushing to diversify the bloc’s energy mix.…
Europe is facing a gas crisis, with prices remaining high and coal becoming a more viable energy source. European leaders are pushing for energy diversification, but in the short term, coal is proving to be more affordable than gas. This is the third energy crisis in just four years for the continent, following a crisis sparked by the Russian invasion of Ukraine.
Europe's leaders are now scrambling for short-term solutions and facing criticism for their lack of long-term planning. While Europe has made significant progress in renewable energy capacity, coal is expected to remain cheaper than gas for power generation through next year and potentially until 2028. However, the continent has limited coal-fired power plants compared to its past, and the potential for coal to rebound is capped.
Globally, coal is still the dominant source of power production, with emerging economies continuing to build coal-fired capacity. Despite coal's drawbacks, it remains a crucial tool for economic development in poor countries. Nevertheless, coal is the primary contributor to global warming, responsible for about 40 percent of all greenhouse gas emissions.
On the other hand, renewable energy sources like wind and solar are gaining traction for their role in ensuring long-term energy security and independence from foreign power manipulation.
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