Coal’s Reign Ebbing in U.K. May Delay New Plants, Baringa Says
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Natural gas’s return as a profitable competitor for coal in U.K. power generation may cause utilities to hesitate in their choice of fuel and delay investment in new plants, according to energy consultants Baringa Partners LLP.
The profit difference between burning coal instead of gas has shrunk to the smallest since 2011, a situation that may hinder plant investment for the next three years, said Ilesh Patel, a partner at Baringa, whose clients include EON SE and Electricite de France SA. Investment in new stations has already slowed, with only one U.K. gas generator under construction since 2009, according to Bloomberg New Energy Finance.