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 ?
Power's results for the quarter reflect the impact of strong hedging, an increase in operation from the gas-fired combined cycle fleet and an improvement in spark spreads with the availability of low-cost gas supply which offset the anticipated effect of a decline in capacity prices.
Peak hour spark spreads for 7 mmBtu/MWh gas units at the Minnesota hub average $7.
The UK gas engine market has improved steadily since the major slump in 2008 and we expect the market size for the 400 kWe and 2 MWe size band to double between now and 2020 driven by improving spark spreads and a supportive policy framework for biogas installations.
Its power generation segment is expected to be around break even in the second half, with the result impacted by lower realised spark spreads and higher levels of plant outages.
These difficulties include supply and demand issues and weak spark spreads - the difference between the price of electricity and the cost of fuel used to produce it.
Do you want to learn more about spark spreads and derivatives?
0 can send users an automatic email with key results, such as: LMP spreads, highest value flowgates, market heat rates, fuel burn, emission burn, spark spreads, and LT build out by technology/MW,/region, etc.
plants, based on reduced expected operating margins for these facilities largely as a result of weaker spark spreads in the North East U.
com)-- Cross-commodity trading, the development of dark and spark spreads in Europe and the impact of carbon will be discussed during the closing session of EMART Energy 2011 that is taking place from 23 November in Lyon, France.
Downstream, the UK residential energy supply business has benefited from its strong competitive position, while upstream the business continues to face low gas prices and modest clean spark spreads.
Low spark spreads - the difference between the price of electricity and the cost of fuel used to produce it - were also a major factor in Texas and New England, where losses of pounds 7 million were seen.
This stemmed from low trading liquidity and weak spark spreads - the difference between the price of electricity and the cost of the fuel used to produce it.