@ARTICLE{Grudziński_Zbigniew_The_2024,
 author={Grudziński, Zbigniew and Stala-Szlugaj, Katarzyna},
 volume={vol. 27},
 number={No 3},
 journal={Polityka Energetyczna - Energy Policy Journal},
 pages={193-206},
 howpublished={online},
 year={2024},
 publisher={Instytut Gospodarki Surowcami Mineralnymi i Energią PAN},
 abstract={In Poland, the main fossil fuel for electricity generation is thermal coal. In most countries of the EU, natural gas is used as a fuel. The aim of the article was to compare the competitiveness of electricity generation from thermal coal and natural gas, taking into account the costs incurred by power generators related to the purchase of fuel and the required CO2 emission allowances. The calculations were carried out for the years 2022–2023, a period of very high volatility of energy carrier prices on international markets. Fossil fuels generated 31% of electricity in the EU in 2023, and 71% in Poland. In 2022, thermal coal prices were high and highly volatile, with maximum daily fluctuations reaching USD 104/ton, well above previous historical values. The main factor causing coal prices to be so high in Europe was the extremely high gas prices resulting from Russia’s invasion of Ukraine. Natural gas prices quoted in August 2022 reached EUR 350/kWh. CDS (Clean Dark Spread) simulations were carried out to assess the competitiveness of thermal coal generation relative to natural gas. In 2022, the cost of power generation from natural gas was higher than coal by an average of EUR 121/MWh. The situation was different in 2023. The dynamic fall in natural gas prices (TTF exchange) caused the costs of generating electricity from these two fuels to equalize. This comparison shows what price fluctuations energy carriers and energy producers have to be prepared for. Such large price fluctuations are most influenced by political factors. The question can be raised as to whether betting on gas as a transitional fuel for a country with a large coal production is the right thing to do.},
 type={Article},
 title={The competitiveness of fuels in electricity generation},
 URL={http://journals.pan.pl/Content/132949/09-10-Grudzi%C5%84ski%20i%20Stala-Szlugaj.pdf},
 keywords={coal prices, gas prices, CDS analysis},
}