Given the increase in costs, are there ways to control the generation costs of combined cycled gas turbines (CCGTs) in Europe? Yes. It just so happens that diesel (#2 fuel oil, gas oil) is typically 20% more expensive in energy terms than crude oil, while natural gas tends to be 40% cheaper, with the result that diesel is typically twice as expensive as natural gas. However, prices are reversed. The rise in natural gas prices in Europe has outpaced that of Brent, meaning the relationship has reversed and diesel was recently half the price of natural gas.

As Kim Keats, Director for EKON Strategy Consulting phrased it: “Nobody advocates for the long-term use of polluting fuels; I am simply affirming the fact that we are more likely to maintain public support for additional measures to combat climate change if the transition does not cost us a fortune”.

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