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Spark Spread

   Also found in: Wikipedia 0.01 sec.
Spark Spread
In energy financing, the theoretical gross income produced by the sale of a unit of electricity, less the cost of the fuel to produce the electricity. All of the plant's other expenses must come out of the spark spread. It is the benchmark used to gauge the financial health of gas-powered electricity plants. Occasionally, if the spark spread is too low, plants will refrain from producing electricity until it becomes more profitable. Since the Kyoto Protocols, the formula for determining the spark spread must include the financial effects of carbon emissions. This is called the clean spread. See also: Dark spread.


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A sampling of topics: control systems identification in finance and economics, a neural network approach to option pricing, hedge fund portfolio selection with modified expected shortfall, looking for short term signals in stock market data, and modeling spark spread option and power plant evaluation.
The spark spread is the difference in cost between electrical power and fuel.
8) Number of employees: 6,002 Primary broken Withheld Captive: Withheld Risk exposures: Volatility in the natural gas market, pricing instability for electric energy, capacity and ancillary services; narrowing of the spark spread (the difference between the market price of electricity and its cost of production) in most regions of the United States in which the company operates generation facilities; market contraction; reduced liquidity in the U.
 
 
 
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