Discussion in 'Commodity Futures' started by deltastrike, Jun 7, 2011.
Could anyone please provide a clear definition of what a generation stack is?
I found this:
It is pretty much what I thought it was.
From Energy Trading and Investing: Trading, Risk Management and Structuring Deals By Davis Edwards.
I was just browsing through the same book, but I couldn't find the exact definition, only references to the term.
The link you posted is pretty good.
Gen Stack is the price a unit would be in the money. Very high level def but easy to understand.
If you have a $90 market you may have hydro, coal, gas and oil running. In a $30 market maybe only nat gas meaning its cheaper for you to buy from the market to fill your load then turn on a unit
How about learning about LMP. Makes it very complex. Still nukes getting paid nat gas or even coal pricing, fair markets right
A generation stack is a supply curve.
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