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1

As alexis0587 said, with any gross producer margin (GPM) spread, you capture the differential of outputs less inputs since that reflects your profit for running the plant: $$\pi = p_e-p_{ng}-p_h-\kappa$$ where $\pi$ denotes profit, $p_e$ electricity price, $p_{ng}$ energy-equivalent factor adjusted natural gas price, $p_h$ equivalent factor adjusted ...


2

When you have a power plant, your gain (financial) is Power Price - coef1 * Gas Price - coef2 * CO2 Price - other cost. So if you want to secure your supply, you have to be Long Gas and CO2 and Short Power. Physical commo is the opposite, you are short gas and long Power (when the Power price rise, you earn more money). Financial strategies must be ...



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