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Inter-Fuel Competition In Electric Power Generation: Coal Or Natural Gas

Author

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  • Gordeev Dmitry

    (Gaidar Institute for Economic Policy)

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.

Suggested Citation

  • Gordeev Dmitry, 2016. "Inter-Fuel Competition In Electric Power Generation: Coal Or Natural Gas," Russian Economic Development, Gaidar Institute for Economic Policy, issue 4, pages 45-49, April.
    • Handle: RePEc:gai:recdev:recdev-2016-4-600
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    File Function: Revised version, 2016
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    More about this item

    Keywords

    Oil and Gas; Russian Economy;

    JEL classification:

    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources

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