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What is the formula for spark spreads reported in the North America Power Tool?

Understanding how spark spreads are calculated in the NAPS tool

Written by Krishna Sharma
Updated over a month ago

The spark spread formula used in the North America Power Tool (NAPS) is documented directly within the tool.
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Where to find the formula

  1. Open the North America Power Tool.

  2. Navigate to the Assumptions tab.

  3. The spark spread calculation formula is listed there, along with the standard heat rate assumptions used in the calculations.


The spark spread represents the margin between power prices and fuel costs, calculated using assumed heat rates that reflect typical generation efficiencies. These assumptions ensure consistency across regions and scenarios within the tool.

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