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Dark Spread Emission Cost Term Tool

Calculate dark spread emission cost term from explicit caller-supplied inputs.

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Description

fuelCost = coalPrice*fuelUnitsPerMwh; carbonCost = emissionsPerMwh*carbonPrice; cleanDarkSpread = powerPrice-fuelCost-carbonCost-variableCost.

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.

fuelCost = coalPrice*fuelUnitsPerMwh; carbonCost = emissionsPerMwh*carbonPrice; cleanDarkSpread = powerPrice-fuelCost-carbonCost-variableCost.

When to use this tool

Use Dark Spread Emission Cost Term when checking one declared generation, storage or hedge-margin contribution.

How to use the tool and how it works

  1. Enter powerPrice, coalPrice, fuelUnitsPerMwh, emissionsPerMwh, carbonPrice, variableCost. Use the units and conventions below.
  2. Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
  3. Read fuelCost, carbonCost, cleanDarkSpread. Use the output convention below.

Require nonnegative fuelUnitsPerMwh and emissionsPerMwh. fuelCost = coalPrice*fuelUnitsPerMwh; carbonCost = emissionsPerMwh*carbonPrice; cleanDarkSpread = powerPrice-fuelCost-carbonCost-variableCost.1

Input fieldMeaning and unitsAccepted input
powerPricePower PriceRequired. Finite number.
coalPriceCoal PriceRequired. Finite number.
fuelUnitsPerMwhFuel Units Per MwhRequired. Finite number; minimum 0.
emissionsPerMwhEmissions Per MwhRequired. Finite number; minimum 0.
carbonPriceCarbon PriceRequired. Finite number.
variableCostVariable CostRequired. Finite number.
Output fieldInterpretationReturned shape
fuelCostFuel CostRequired. Finite number.
carbonCostCarbon CostRequired. Finite number.
cleanDarkSpreadClean Dark SpreadRequired. Finite number.
json
{
  "input": {
    "powerPrice": 120,
    "coalPrice": 20,
    "fuelUnitsPerMwh": 2,
    "emissionsPerMwh": 0.8,
    "carbonPrice": 50,
    "variableCost": 5
  },
  "output": {
    "fuelCost": 40,
    "carbonCost": 40,
    "cleanDarkSpread": 35
  }
}

Limitations and assumptions

  • All costs normalize to currency/MWh, with emissions matching the carbon-price mass unit. Negative prices are accepted; fixed, startup and operating constraints are omitted.
  • 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

  1. Calculation and input contract: energy-economics/dark-spread-emission-cost-term — tool.io

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