The Heat Rate / Spark Spread indicator measures the efficiency of converting natural gas into electricity. Heat rate represents the amount of fuel required to generate one unit of electricity; spark spread reflects the profit margin between electricity prices and fuel costs.
Tracking heat rate and spark spread helps power producers evaluate plant efficiency and determine when it is economically advantageous to run gas-fired units.
Status: Yellow – Average heat rates and spark spreads indicate moderate gas-to-power conversion efficiency.
Sources: Fuel efficiency metrics from power market data and generation plant reports.
