Spark Spread

Explainers about spark spreads, clean spark spreads, gas-fired generation margins, heat rates, fuel costs, carbon costs, dispatch economics, and power-market hedging.

What is a spark spread? The number that decides whether a gas plant wants to run

Gas-fired power plant beside a balance scale comparing electricity revenue with gas costs to illustrate spark spread economics.

A gas-fired power plant can be technically available, connected to the grid, fully fueled—and still have no economic reason to generate electricity. The spark spread explains why. It compares the value of the electricity a gas plant can sell with the cost of the gas it must burn to produce it. Add carbon costs and you get the clean spark spread: one deceptively simple number connecting electricity, gas, plant efficiency, carbon markets, dispatch, and power prices.