Policy & Regulation

Flexible gas could profit from German price spikes

Germany's shift to renewables could offer coal and gas a chance to profit in the near term Germany's shift to renewables could offer coal and gas a chance to profit in the near term.
By Andreas Walstad 8 August 2018 0 32060

Flexible gas- and coal-fired plants should be able to benefit from price spikes on the German power market in the coming years as output from renewables increases and thermal plants go offline, ratings agency Moody’s said in a recent report. 

In the near term, clean dark and clean spark spreads – the profit from generating power after taking fuel and carbon prices into account, with clean spark spreads referring to gas generation and clean dark spreads refering to coal generation – are likely to remain tight...