Switching boosting gas demand again in 2017
German peak Clean Spark Spreads (CSS) & Dark Spreads (CDS)
Switching of gas for coal plant drove a more than 20 bcma (4%) growth in European gas demand in 2016. Gas demand remains robust again in H1 2017. German peak gas generation margins (CSS) are a useful barometer for pan-European switching. The chart shows spot peak CSS (49% efficient CCGT), rising into positive territory over the summer (towards 5 €/MWh). Winter forward prices indicate more switching to come, with peak CSS above 10 €/MWh.