Generation Stack?

Discussion in 'Commodity Futures' started by deltastrike, Jun 7, 2011.

  1. Could anyone please provide a clear definition of what a generation stack is?
  2. From Energy Trading and Investing: Trading, Risk Management and Structuring Deals By Davis Edwards.
  3. I was just browsing through the same book, but I couldn't find the exact definition, only references to the term.
  4. The link you posted is pretty good.
  5. monty09


    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
  6. pwrtrdr


    How about learning about LMP. Makes it very complex. Still nukes getting paid nat gas or even coal pricing, fair markets right
  7. A generation stack is a supply curve.