Spark Spreads 2.5X Y-O-Y

April 25, 2022

Spark spreads in major competitive markets are $36.81 versus $14.60 one year ago. These are bullish signals for natural gas as they indicate a financial incentive for natural gas generators to buy gas and produce electricity, versus buying power on the grid. Spark spreads are a calculation involving current prices of energy and natural gas, and a measure of generating efficiency (heat rate).