Spark Spread Management

The convergence of the natural gas and electricity industries in energy production gave rise to the concept of the spark spread, which is the differential in value (expressed in $/MWh) of natural gas as a commodity for sale in the competitive spot market versus its value converted into electricity at a given location and heat rate and sold into the spot electricity market.

Meeting a growing need, TEA analyzes the spark spread on an hourly and daily basis for clients that own generation or are holding rights to off-take from generation. We integrate such analysis with the purchase and sale of natural gas, purchase and sale of electricity, and purchase and sale of transmission capacity for both commodities.