End of Day Power Summary: French August Resists Falling TTF, EU ETS Prices

The French August baseload power contracts erased some gains, after having flipped before the midday session, as it was supported by the week-ahead products amid high temperatures – possibly raising cooling demand – with Germany tracking losses in the energy complex.

• France Base Power AUG 24 up 2.1% at 43.58 EUR/MWh
  
• France Base Power Week 1 down 0.22% at 50.50 EUR/MWh
• France Base Power Week 2 up 0.62% at 46.85 EUR/MWh at 14:58 BST.
• Germany Base Power AUG 24 down 2.1% at 70.94 EUR/MWh
• EUA DEC 24 down 0.9% at 68.4 EUR/MT
• TTF Gas AUG 24 down 3.4% at 31.18 EUR/MWh
• Rotterdam Coal AUG 24 down 1.9% at 104 USD/MT
• EU ETS Dec 24 has extended losses from yesterday to move down to the lowest since 2 July, as political risk has subsided amid the end of French elections, however, there remains little clarity on how a stable gov't coalition can be formed. Losses in coal and gas are also adding weight.
• TTF is down today to its lowest level since 17 May, with stable fundamentals, a restocking of gas storage, and little sign of impact to US LNG from Hurricane Beryl adding downside pressure.
• The latest ECMWF weather forecast for France from 10-18 July points to max temperatures between 23-31C over the period – with temperatures anticipated to be above 25C from 14-18th of the same month.
• Average temperatures in Paris are anticipated to remain firm from July in August at around 20.5C from 20.4C forecast for this month.
  
• And French nuclear generation could fall slightly in August from July this year as generation in August 2023 averaged 32.37GW, down from around 33GW in July, according to Bloomberg model – which could support prices if a similar trend occurs.
• The German government plans to abolish payments given to power producers for generation during negative power prices, with the changes applied in 2025, it said, cited by EurActiv.
• The UK may need an additional £57bn by 2030 to reduce reliance on carbon and support “green” job growth, however, it has only earmarked £7.3bn to invest in the renewable industry, a report by the National Wealth Fund Taskforce (NWFT), cited by Bloomberg.
• Spain’s hydropower reserves last week declined for the sixth consecutive week to 61.8% of capacity, down from 62.7% of capacity the week before according to data from Spain’s Environmental Ministry.
• Spain has given the green light for decree that sets out laws for building floating PV farms on state-owned reservoirs, the energy ministry said, cited by XM.
• Europe is expected to sign a total volume of 21GW in PPAs this year, up by 3GW from 2023, Aurora Energy Research said.