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Infographic

German spark spreads improve year on year

Profit margins for German gas-fired power plants improved in 2019 compared with the previous year, while margins for coal-fired plants declined Profit margins for German gas-fired power plants improved in 2019 compared with the previous year, while margins for coal-fired plants declined.
By Andreas Walstad 13 January 2020 Europe & Russia / Alternative Fuels 0 34925
Chart showing year-ahead baseload spreads in Germany

The German clean spark spread for modern and fuel-efficient plants averaged €7.20/MWh (€8.20/MWh) in 2019 compared with around €3.70/MWh in 2018, according to Interfax calculations based on month-ahead power and gas prices and prices for EU carbon allowances. Older gas-fired plants saw profit margins turn positive of around €2.20/MWh on average after being negative the year before, at an average of minus €3.80/MWh.

Lower gas prices relative to coal and higher prices for EU carbon allowances...