Implied heat rate

Implied heat rate
  A calculation of the day-ahead electric price divided by the day-ahead natural gas price. Implied heat rate is also known as the ‘break-even natural gas market heat rate,’ because only a natural gas generator with an operating heat rate (measure of unit efficiency) below the implied heat rate value can make money by burning natural gas to generate power. Natural gas plants with a higher operating heat rate cannot make money at the prevailing electricity and natural gas prices.
  U.S. Dept. of Energy, Energy Information Administration's Energy Glossary

Energy terms . 2014.

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