Dark spreads represent the generating margin of coal-fired power stations and are calculated from the difference between power prices and coal prices, adjusted for fuel efficiency. “An efficiency ratio of 31.38% was used in the trade and looks set to become the standard, as this corresponds to a conversion rate of exactly 15 MW for every 5,000 tonnes of coal,” Spectron said in a statement.
Dark spread interest has been steadily growing as traders have sought hedging and risk management tools for
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