TPD 0.00% 21.0¢ talon energy ltd

That’s true, but the real advantage of gas over coal is the...

  1. 204 Posts.
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    That’s true, but the real advantage of gas over coal is the flexibility of a gas turbine generator. Coal generation plants are very cost effective when operated near full capacity, but the massive increase in renewable energy forces them to gradually ramp back to circa 30% capacity most days. Coal plants effectively have to pay wind and solar to turn off so they can stay above their minimum allowed load - that’s why we are getting negative electricity prices at times on the NEM. The pricing mechanism effectively discriminates against coal, and that’s why their closure dates keep getting brought forward.

    Flexible gas and hydro generation are key to filling the large generation shortfalls that renewables can’t fill. Hydro is great but is obviously problematic on a capital cost, environmental and schedule viewpoint. Those of us in the industry know how critical gas will be to electricity industry in coming years.
 
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