High gas prices drive European power producers back to coal
Elevated TTF levels are shifting the merit order, making coal competitive again across multiple European bidding zones.
By Matthias Blank · drafted with the Vantage newsroom system, approved before publication
High European gas prices are pushing power producers back to coal, according to Reuters. The shift reflects a move in the merit order: where gas-fired generation previously cleared the market, coal is now cheaper to run in at least some zones, a direct consequence of TTF remaining elevated.
The fuel switch carries a carbon cost sting. Coal plant emissions per MWh exceed those of gas-fired CCGT output, so a sustained return to coal lifts EUA demand and tightens the carbon balance. Traders pricing dark spreads versus spark spreads will need to factor in that EUA demand uplift when assessing zone-level profitability.
Separately, EEX issued a data amendment correcting ECarbix index values for trading days in November 2025 and January 2026. Any position or settlement calculation that referenced those published values during those periods will need to be reviewed against the corrected figures.
Source: Reuters Energy
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