Gas and wind is like a perfect modern day romance, full of volatility, unpredictability and ups and downs.
In the UK, the share of wind in the power mix rose from just around 7% back in 2016 to almost one-third in 2023, while the phase-out of coal-based capacity continued.
The share of gas-fired power generation continued to decline as well amidst the rapid expansion of wind, and dropped from over 45% in 2016 to around 30% these days.
However, the balancing role of gas-fired power plants is becoming more important than ever as showcased by the extremely strong negative correlation factor (-0.75) between gas and wind power generation.
This trend is set to continue over the medium-term across all over Northwest Europe, as renewable capacity expands and coal is phased-out.
This will require a robust and flexible gas supply value chain, more short-term trading and more sophisticated risk trading management strategies.
Source: Greg Molnar (LinkedIn)
European Gas Hub is an online platform for sharing analysis and information about European natural gas markets more info
Sign up to receive our weekly newsletter with new European gas market reports, presentations & analysis. Every Tuesday.
By signing up, I agree to our TOS and Privacy Policy.
© 2020 EuropeanGasHub | All Rights Reserved
