Suryaa Business Desk: Natural Gas, which has been the most important source of energy in the global power generation sector for decades, is gradually... Natural gas, which has been the most important source of energy for decades in the global power generation sector, is gradually losing its dominance. Analyzes reveal that the share of natural gas-fired power generation in major international power markets is declining. The rapid availability of renewable energy sources like solar and wind power and the cheapening of battery storage technology are the main reasons behind this unexpected development. In the past, natural gas was widely used as an environmentally friendly alternative to coal-fired power plants.
However, recent fluctuations in international natural gas prices and bottlenecks in the supply chain have led power generation companies to turn to renewable energy at a faster pace. Green energy projects in key regions such as Europe, Asia and North America are generating record levels of sustainable electricity, reducing the need for gas plants. Growing environmental awareness and carbon emission reduction targets set by governments of various countries are also putting severe pressure on the gas power market. As the share of green energy in power grids has increased exponentially, gas plants have to run only during peak power demand. Industry experts analyze that due to this, the maintenance cost of gas plants has increased and they are becoming economically less profitable.
This energy transition process is leading to new economic equations in global energy markets. Renewable energy is expected to cross more innovative milestones in the coming days, further reducing dependence on conventional energy sources. These changes are affecting the strategies of international business communities as well as global investors.
