Natural Gas, Refined Products, Coal, Energy Transition, Fuel Oil, Carbon, Emissions

December 05, 2023

Platts to change European power generation cost comparisons

Platts, part of S&P Global Commodity Insights, will change the European power generation cost comparisons, including adding a carbon price levy for the UK, discontinuing fuel oil calculations, and discontinuing profit/loss comparisons, effective Feb. 20.

The changes follow market research and feedback regarding Europe's shift to a cleaner energy mix.

Platts first proposed these changes Nov. 14: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/111423-platts-proposes-changes-to-european-power-generation-cost-comparisons

Platts will update its UK-based cost comparisons to include the government's Carbon Price Support Levy (CPS) on fossil fuels used to generate electricity.

A CPS tax of GBP18/mt will be added to all UK gas and coal cost comparisons.

The impacted calculations are as follows:

UK
Gas GBP/MWh Eur/MWh $/MWh $/MMBtu Eur/Gj p/therm
Cost of CO2 AANFK00
Balance month cost AANCI00 AANCL00 AANCK00 AANCJ00
Month ahead cost AANFJ00 AANCM00 AANCP00 AANCO00 AANCN00
Month ahead Total cost AANFL00
Month 2 cost AANCQ00 AANCT00 AANCS00 AANCR00
Quarter ahead cost AANFW00 AANCU00 AANCX00 AANCW00 AANCV00
Quarter ahead Total cost AANFX00
Coal
Cost of CO2 AANGH00
Month ahead cost AANGG00
Month ahead Total cost AANGJ00
Quarter ahead cost AANGU00
Quarter ahead Total cost AANGV00

Platts will also discontinue the fuel oil generating fuel cost comparisons for Northwest Europe and the UK.

Fuel oil-based power generation has fallen to 1.6% as a part of generation mix Europe-wide. according to European Council data.

Platts will discontinue the following calculations:

GBP/MWh AANHF00 AANHE00 AANHG00 AANHH00 AANHN00 AANHP00 AANHQ00 AANHL00 AANHJ00, AANDM00 Month ahead Total cost AANHK00 AANHM00 AANDQ00 AANHR00, AANDU00 Quarter ahead Total cost AANHS00 AANHT00
UK
Fuel Oil 1% S
Cost of CO2
Month ahead cost
Month ahead Total cost
Month ahead Profit/Loss
Quarter ahead cost
Quarter ahead Total cost
Quarter ahead Profit/Loss
NWE
Fuel Oil 1% S GBP/MWh Eur/MWh $/MWh $/MMBtu Eur/Gj p/therm
Cost of CO2
Month ahead cost AANDP00 AANDO00 AANDN00
Month ahead Profit/Loss
Month 2 cost AANDT00 AANDS00 AANDR00
Quarter ahead cost AANDX00 AANDW00 AANDV00
Quarter ahead Profit/Loss

Additionally, Platts will discontinue the quarter ahead and month ahead profit/loss comparison for gas and coal.

Information about the profit and loss of burning gas or coal can instead be found in the clean spark and clean dark spreads, respectively.

Platts will discontinue the following calculations:

UK
Gas GBP/MWh Eur/MWh $/MWh
Month ahead Profit/Loss AANFM00 AANFN00 AANFP00
Quarter ahead Profit/Loss AANFY00 AANFZ00 AANGA00
Coal
Month ahead Profit/Loss AANGK00 AANGL00 AANGM00
Quarter ahead Profit/Loss AANGW00 AANGX00 AANGY00

The generating fuel cost comparisons can be found in European Power Daily and fixed page PEP0502.

Platts invites any questions and feedback to powerpricing@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.