Energy prices In Europe are at an all-time high.
While the situation is not expected to last forever, even after gas prices reach some degree of moderation, the cost of generating power using solar photovoltaics will drop so low that it will be 10 times cheaper, a report from anEurope has always relied on gas-fired power stations for its energy demands. The geopolitical tension over Ukraine has resulted in Russia dropping its gas exports, which have directly impacted the region's energy cost.
. Gas prices may not reach the highs of US$330 per MWh as they did in August, but with the conflict showing no signs of abating, Russian gas exports are unlikely to increase, and Europeans will have to pay more for their heating needs. The TTF gas price is expected to stabilize by the end of the decade and may drop to US$31 per MWh. The Levelized cost of energy from gas would reach about US$150 MWh at this price. While this might sound cheap in comparison to whattoday, it will still be three times as much the LCOE from solar facilities, the report added. For gas to remain competitive as a fuel, its prices would have to drop to US$17 MWh, which the report calls "unthinkable" in the current scenario.
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