Spark spread

Spark spread

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a common metric for estimating the profitability of natural gas-fired electric generators. The spark spread is the difference between the price received by a generator for electricity produced and the cost of the natural gas needed to produce that electricity. It is typically calculated using daily spot prices for natural gas and power at various regional trading points.

Pros

A large spark spread can result in a more economical energy system for consumers.

Cons

Spark spread is a conversation that only relates to the consumption of fossil fuels.

Real Talk

Reducing spark spread reduces the business case of natural gas generators.

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