Power as a Commodity--Sparks and Darks

摘要

Spark spreads continued to fall over December recording an average spark (Spectron based - power and gas) of 18.64 pounds/MWh. This was lower than last month's average of 27.37 pounds/MWh. Spreads opened the month at 30.37 pounds/MWh and fluctuated in the range of 7.86 and 34.39 pounds/MWh, before closing at 11.86 pounds/MWh. This is tighter than last month's range of 10.71 and 49.70 pounds/MWh. There is still a degree of disparity between using the day-ahead indices and APX's spot prices. Using the APX's spot prices it is possible to create an indicative two-shift spark spread by calculating a"peak (7am-to-7pm average) price. Similarly an off-peak price can also be deduced. The same has been done with the Dark spread using McCloskey's Aire Valley Marker. Both UKPX Dart and Spectron's day-ahead indices have been used to represent day ahead baseload spark and dark spreads. Spot peak sparks were also lower over the month, with December averaging 30,41pounds /MWh, down compared t6 36.36 pounds/MWh in November (using APX Dart's figures). Off-peak sparks fell, recording a spread of 5.70 pounds/MWh, compared to the 8.29 pounds/MWh recorded last month. At these levels uncontracted CCGTs should still be able to perform baseload operations rather than the less efficient two-shifting pattern.