SPREAD CALCULATIONS – Spark, Dark, Clean Spark and Clean Dark
SPARK SPREAD
The spark spread is the theoretical gross margin of a gas-fired power plant from selling a unit of
electricity, having bought the fuel required to produce this unit of electricity.
SPARK SPREAD – Thomson Reuters Spark Spread is calculated based on TRPC Power and Natural Gas
prices. An efficiency of 0.5 (50 %) is considered for gas fired plants.
FORMULAS TO CALCULATE SPARK SPREAD FOR THE FOLLOWING COUNTRIES:
Germany: Thomson Reuters DE Spreads
SPARK DE = [DE Elec.Eur/Mwh] – [NCG Gas Eur/Mwh / Efficiency factor]
France: Thomson Reuters FR Spreads
SPARK FR = [FR Elec.Eur/Mwh] – [(ZEE Gas p/th * E/pence) / (2.93071 * Efficiency factor)]
Italy – Thomson Reuters IT Spreads
SPARK IT = [IT Elec.Eur/Mwh] – [ITEC Gas Eur/Mwh / Efficiency factor]
Netherlands – Thomson Reuters NL Spreads
SPARK NL = [NL Elec.Eur/Mwh] – [TTF Gas Eur/Mwh / Efficiency factor]
SPARK BE = [BE Elec.Eur/Mwh] - [ZEE Gas Eur/Mwh / Efficiency factor]
Efficiency Factor for Gas – 50%
Conversion: Conversion from Therm/MWH = 0.0293071
Conversion from £/pence = 0.01
Conversion from Pound (£) to Euro (E) = RIC <GBPEUR=X>
DARK SPREAD
The term dark spread refers to the similarly defined difference between cash streams (spread) for coalfired power plants.
DARK SPREAD – Thomson Reuters Dark Spread is calculated based on TRPC Power and Coal prices. An
efficiency of 0.35 (35 %) is considered for coal fired plants.
FORMULAS TO CALCULATE DARK SPREAD FOR THE FOLLOWING COUNTRIES:
Germany: Thomson Reuters DE Spreads
DARK DE = [DE Elec.Eur/Mwh] – [API2 $/mT / (6.9784 * Efficiency factor)]/EURUSD
France: Thomson Reuters FR Spreads
DARK FR = [FR Elec.Eur/Mwh] – [API2 $/mT / (6.9784 * Efficiency factor)]/EURUSD
Italy – Thomson Reuters IT Spreads
DARK IT = [IT Elec.Eur/Mwh] - [API2 $/mT / (6.9784 * Efficiency factor)] /EURUSD
Netherlands – Thomson Reuters NL Spreads
DARK NL = [NL Elec.Eur/Mwh] - [API2 $/mT / (6.9784 * Efficiency factor)] /EURUSD
API2 Coal - <0#TRAPI2:>
Efficiency Factor for Coal – 36%
API Coal Heat Factor – 6.9784
Conversion: EURUSD = RIC <EUR=X>
GBPUSD = RIC <GBP=X>
CLEAN SPARK SPREAD
The Clean Spark Spread is calculated using a gas emissions intensity factor. Therefore the Clean Spark
Spread is calculated by subtracting the carbon price (multiplied by ratio Gas) from the Spark Spread.
i.e. Clean Spark Spread = Spark Spread – [Carbon price(CO2)*ratio Gas]
CLEAN DARK SPREAD
The Clean Dark Spread is calculated using a coal emissions intensity factor. Therefore the Clean Dark
Spread is calculated by subtracting the carbon price (multiplied by ratio Coal) from the Dark Spread.
i.e. Clean Dark Spread = Dark Spread – [Carbon price(CO2)*ratio Coal]
FORMULAS TO CALCULATE CLEAN SPARK & CLEAN DARK SPREAD FOR THE FOLLOWING COUNTRIES:
Germany:
Thomson Reuters DE Clean Spark Spread = [SPARK SPREAD DE] - [CO2*ratio Gas]
Thomson Reuters DE Clean Dark Spread = [DARK SPREAD DE] - [CO2*ratio Coal]
France:
Thomson Reuters FR Clean Spark Spread = [SPARK SPREAD FR] - [CO2*ratio Gas]
Thomson Reuters FR Clean Dark Spread = [DARK SPREAD FR] - [CO2*ratio Coal]
Italy:
Thomson Reuters IT Clean Spark Spread = [SPARK SPREAD IT] - [CO2*ratio Gas]
Thomson Reuters IT Clean Dark Spread = [DARK SPREAD IT] - [CO2*ratio Coal]
Netherlands:
Thomson Reuters NL Clean Spark Spread = [SPARK SPREAD NL] - [CO2*ratio Gas]
Thomson Reuters NL Clean Dark Spread = [DARK SPREAD NL] - [CO2*ratio Coal]
Emissions (CO2) - <0#TREUA:>
Ratio Gas - 0.38
Ratio Coal - 0.90
Conversion = GBPEUR = RIC <GBPEUR=X
CONVERSION FACTOR
Conversion Table
Description
Conversion from PLN to EUR
RIC
Constant
<PLNEUR=X>
Conversion from Therm/MWH
0.0293071
Conversion from £/pence
0.01
Conversion from Pound(£) to Euro(E)
<GBPEUR=X>
Conversion from Euro(E) to USD($)
<EUR=X>
Conversion from GBP(GB£) to USD($
<GBP=X>
Conversion from GBP(GB£) to Euro(E)
<GBPEUR=X>
Gas Efficiency Factor
50%
Gas Efficiency Factor (GB Spark)
49.13%
Coal Efficiency Factor
36%
API Coal Heat Factor
6.9784
Ratio Gas
0.38
Ratio Coal
0.9
Full information can be viewed on TR EIKON under below page
<TRPC/INFO>