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 ?
The 2017 dark spread for a coal-fired plant of 38pc-efficiency ended last week at around 5.
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.
And despite the adage you either love or hate the darK spread, the judges voted unanimously to send Nathan through.
The assembly of data gives a comprehensive representation of monthly average wholesale coal, carbon and spark and dark spread prices in Europe's main energy markets, providing insight into wholesale energy price movements as well as wholesale market inter-temporal changes in Europe O http://marketpublishers.
CoalCo's ratings reflect a challenging business environment led by compressed dark spreads, adversely shifting basis differentials due to coal-to-gas switching impact on power dispatch, and increase in railway transportation costs as current favorable contract expires in 2013.
Fitch believes that the proposed exchange and restructuring strengthens the project due to the strength of the counterparty, GECC, and the deferral of amortization during a period of projected tight dark spreads and expected outages related to construction.
Without these, Units 1 & 2 would likely cease operations under the current low gas and dark spreads environment.
Expected continuation of limited hedging ability at the Project due to low dark spreads (the margin between electricity and coal prices) and low natural gas prices that make hedges uneconomic;
Negative pressure still exists on dark spreads in the mid term.
Limited revenue hedging ability due to extremely low dark spreads (the margin between electricity and coal prices) and low natural gas prices that make hedges uneconomic;
The lower Conectiv Energy earnings were primarily due to significantly lower generation output and reduced spark spreads and dark spreads.
Fitch also notes that on the whole the near-term prospects for RRI's wholesale generating portfolio is generally weak as dark spreads continue to compress and the demand picture for generation remains murky due to the recessionary economy.