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.
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References in periodicals archive ?
Dark Spread Compressed: ZEG's profit and cash flow is highly sensitive to fuel costs, since 95% of its power generation is from coal-fired power plants.
This is when you can put out snows in your dark spread. It goes back to your scouting and what you are seeing when you are on the road.
He said: "The difference between the dark spread (the gap between the wholesale cost of coal and its market price) and the spark spread (the same for gas-fired power) is wide and massively favouring coal.
And despite the adage you either love or hate the darK spread, the judges voted unanimously to send Nathan through.
Dark Spread Compressed: China's coal price rose 33% yoy in 11M17.
Its pale blue paintwork, gilded and creamed with dust through this long dry summer, gleamed like a little patch of sky fallen down before the dark spread of the orchards running north from the village into the garden of Kent, the very garden of England.
This is largely because the sector can still enjoys a healthy dark spread - the difference between the on-grid power tariff and unit generation fuel cost - especially after the government revised the coal-electricity linkage pricing mechanism in late 2015.
Given that Reftinskaya GRES is located in the first pricing zone where electricity prices are driven by gas prices, the company benefited the most from the high dark spreads related to its relatively cheap coal-fired generation.