S&P Global Commodity Insights proposes new base, peak spark spread calculations

S&P Global Commodity Insights proposes to add peakload spark spread calculations for German and UK power markets and baseload and peakload spark spread calculations for the Netherlands and France, effective May 2, 2022.

New spark spread calculations would provide the market with greater insight into margins for gas-fired power plants. With coal and nuclear phaseouts ahead, gas is becoming increasingly important for power generation across Europe in the longer term.

To align with its existing offerings, S&P Global would also publish corresponding clean baseload and peakload spark spreads, as well as clean spark spreads plus Carbon Price Support (CPS) levy for the UK only.

The proposed gas plant efficiencies are 45%, 50% and 60%.

The new spark spreads would be measured in Eur/MWh for Germany, France and the Netherlands, while for the UK the calculations would be in GBP/MWh.

The methodology of the existing spark spreads can be found here https://www.spglobal.com/commodity-insights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/european_power_methodology.pdf.

The new calculations would be published in European Power Daily, European Gas Daily, Platts Dimensions Pro, and fixed pages PEP0639, PEP0644, PEP0660, PEP0645, PEP0668, PEP0641 on a daily basis.

Please send feedback and questions to power@spglobal.com and pricegroup@spglobal.com by March 28, 2022.

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