Spark Spread


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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.
References in periodicals archive ?
Apart from the technological advancements and selection criteria for various CHP technologies, it discusses the economic feasibility and spark spread analysis of CHP units.
With a high spark spread, the multi-unit-residential market in the five boroughs is a logical fit for our energy efficient technology and a great solution for our customers there.
Its EBITDA margin (12% in 1H 2011) depends on efficient Kostromskaya GRES, which produces 40% of company electricity and has the highest spark spread (selling price of 1 kWh minus cost of fuel needed to produce it) among company assets thanks to lowest fuel use (306 g/kWh).
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.
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.
The spark spread last year was very profitable for power generators supplying the western U.
1, 2015 /PRNewswire/ -- North American Combined Heat and Power Generation Market :Market Likely to Experience Upward Trend Backed by Regulatory Support and Positive Spark Spread The research provides an analysis of the North American combined heat and power (CHP) market.
Platts Turkish Month-Ahead Spark Spread - 45% efficiency **: An indicator of the profitability of 45%-efficient natural gas-fired power plants.
4) Reflects the simple average of the spark spread available to either a 7.
Spark spread and government incentives are the two main driving forces behind the CHP market, although each has a different effect for different market segments.