As a consequence of very low European gas prices, the short-term prospects for gas-fired power generation in Germany have improved significantly and profitability at many German gas-fired power plants has improved to the point where they are currently more profitable than coal-fired facilities. On the back of these improved pricing dynamics we have revised our forecast for growth in gas-fired generation in ---- to -.-- and to reflect fuel switching (from --.- ). ...As such, renewables capacity will continue to grow, ensuring that wholesale electricity prices remain depressed and margins at thermal plants - especially gas plants with higher marginal costs - will continue to be squeezed. In this low wholesale price environment, coal will remain more profitable than gas over a longer timeframe and we forecast that coal will retain its status as the biggest component of the power generation mix over our ---year forecast period. To this end, Germany will not diverge from its renewables-focused energy policy - despite the implementation of the energy market -.- and reforms to slow the pace and reduce the cost of the Energiewende (energy transition). ...In this low wholesale price environment, coal will remain more profitable than gas over a longer timeframe and we forecast that coal will retain its status as the biggest component of the power generation mix over our ---year forecast period.
...BMI View: The outlook for conventional generation capacity in Germany remains bleak as the country pursues its energy transition - with utilities that have exposure to thermal assets likely to continue to be squeezed financially due to an influx of subsidised renewables capacity. A brief uptick in gas-fired generation in ---- - due to lower European gas prices - is likely to be short-lived and we retain our view that coal will remain the dominant thermal generation fuel over our ---year forecast period. ...BMI View: The outlook for conventional generation capacity in Germany remains bleak as the country pursues its energy transition - with utilities that have exposure to thermal assets likely to continue to be squeezed financially due to an influx of subsidised renewables capacity. A brief uptick in gas-fired generation in ---- - due to lower European gas prices - is likely to be short-lived and we retain our view that coal will remain the dominant thermal generation fuel over our ---year forecast period. ...A brief uptick in gas-fired generation in ---- - due to lower European gas prices - is likely to be short-lived and we retain our view that coal will remain the dominant thermal generation fuel over our ---year forecast period.
...� Business Monitor International Ltd Page - systematically phase out coal capacity in the final draft of its Climate Action Plan ----, which was released in September ----. In response to ongoing problems in the thermal generation segment, E.ON completed the spin-off its fossil-fuelled generation assets and supply and trading business into a new entity known as Uniper in September ----. ...� Business Monitor International Ltd Page - systematically phase out coal capacity in the final draft of its Climate Action Plan ----, which was released in September ----. In response to ongoing problems in the thermal generation segment, E.ON completed the spin-off its fossil-fuelled generation assets and supply and trading business into a new entity known as Uniper in September ----. It is hoped the move will allow the slimmed down E.ON to focus on growth areas such as renewables, networks and energy services - without having to focus on its declining thermal assets. ...
