Natural gas has become so cheap that some power plants in Europe have started using this type of fuel again, Bloomberg reports.

In the short-term market, the price of natural gas has fallen as high temperatures keep gas demand low and gas storage on the mainland is almost full, so it is more cost-effective for electricity producers to use gas instead of coal. This is after coal was the cheapest fuel for several months and countries such as Germany and Great Britain announced the extension of the operating time of coal-fired power plants, with the idea of ​​ensuring energy supply during the winter.

According to data provided by the European Association of Transmission and System Operators in Europe (ENTSO-E), on Tuesday gas-based electricity production in Germany reached an average of 8.4 Gigawatts, 33% above the average of the last 30 days. Also in the Netherlands, gas-fired electricity production was of 5.9 Gigawatts, 44% above the monthly average, while coal-fired electricity production halved to 835 Megawatts, the lowest level since May.

The price of natural gas has halved this month amid unusually warm temperatures for this time of year that have delayed the start of the fuel supply season, while continued high imports of liquefied gas mean even more fuel is injected into the gas deposits and so almost full. In contrast, coal prices fell by just a fifth in October, making it more cost-effective for electricity producers to use gas instead of coal, according to Agerpres.

At the same time, electricity prices also fall. On the German market, prices for electricity delivered next month fell by 2.5% to 234 euros per Megawatt-hour, the lowest level since June.