Description
grossCarbonCost = emissionTonnesPerMwh*carbonPricePerTonne; priceIncrement = grossCarbonCost*passThroughFraction.
A generation or storage spread compares revenue with specified fuel, carbon, purchase or hedge costs. It is a local margin on a common output-energy basis, rather than complete profit or proof a dispatch or trade is feasible.
grossCarbonCost = emissionTonnesPerMwh*carbonPricePerTonne; priceIncrement = grossCarbonCost*passThroughFraction.
When to use this tool
Use Carbon Cost Pass Through One Mwh when checking one declared generation, storage or hedge-margin contribution.
How to use the tool and how it works
- Enter emissionTonnesPerMwh, carbonPricePerTonne, passThroughFraction. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read grossCarbonCost, priceIncrement. Use the output convention below.
Require nonnegative emissionTonnesPerMwh and passThroughFraction in [0,1]. grossCarbonCost = emissionTonnesPerMwh*carbonPricePerTonne; priceIncrement = grossCarbonCost*passThroughFraction.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| emissionTonnesPerMwh | Emission Tonnes Per Mwh | Required. Finite number; minimum 0. |
| carbonPricePerTonne | Carbon Price Per Tonne | Required. Finite number. |
| passThroughFraction | Pass Through Fraction | Required. Finite number; minimum 0; maximum 1. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| grossCarbonCost | Gross Carbon Cost | Required. Finite number. |
| priceIncrement | Price Increment | Required. Finite number. |
{
"input": {
"emissionTonnesPerMwh": 0.5,
"carbonPricePerTonne": 80,
"passThroughFraction": 0.75
},
"output": {
"grossCarbonCost": 40,
"priceIncrement": 30
}
}Limitations and assumptions
- Outputs use currency/MWh. Pass-through is supplied, not estimated from market behavior; permit rules, actual emissions and resulting prices are not established.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use complete operating costs, technical constraints and settlement terms to assess a real dispatch, hedge or investment.
References
Similar or alternative tools
- Dark Spread Emission Cost Term
fuelCost = coalPrice*fuelUnitsPerMwh; carbonCost = emissionsPerMwh*carbonPrice; cleanDarkSpread = powerPrice-fuelCost-carbonCost-variableCost.
- Battery Roundtrip Loss Arbitrage Gap
purchasedMwh = deliveredMwh/efficiency; grossMargin = deliveredMwh*sellPrice-purchasedMwh*buyPrice; breakEvenSellPrice = buyPrice/efficiency.