End of Day Summary: FR-DE August Power Discount Widens 11-Session High

The French-German August baseload power contract discount has widened sharply on the day as the French front month is being weighed down by a downward revision of temperatures, with anticipated power curtailments adding additional weight. But the German equivalent has tracked gains in the energy complex.

• France Base Power AUG 24 down 7.5% at 46.3 EUR/MWh
• Germany Base Power AUG 24 up 5% at 75.4 EUR/MWh
• EUA DEC 24 up 4.6% at 68.74 EUR/MT
• TTF Gas AUG 24 up 3.3% at 32.65 EUR/MWh
• Rotterdam Coal AUG 24 up 2.6% at 112.45 USD/MT
• The French-German August 24 discount is at €29.25/MWh at the time of writing, widening from €21.77/MWh in the previous session.
• The TTF front month has been extending gains amid support from further LNG competition, while Freeport flows are unchanged despite power supply to the terminal falling on 24 July.
• EU ETS Dec 24 has continued gains from yesterday to be supported by gas and coal prices.
• The German and French day-ahead baseload contracts diverged, with France moving down amid stronger wind load factors compared to Germany coupled with stable nuclear capacity, while Germany rose on low wind forecasts.
• Epex stated that the market coupling process “encountered severe technical issues” on 24 July, which has impacted the Czech bidding zone.
• France’s EdF was not able to participate in the intraday auction at 3PM CET today (IDA1) due to operational issues, it said.
• Germany’s Bnetza is planning to reform network charges of industrial power consumers in order to incentivise industrial consumers to adjust consumption to renewable energy fluctuations, it said.
• The German cabinet on Wednesday approved the law to speed up the permitting process for onshore wind plants, solar PV plants and batteries at the same location, the German economy ministry said.
• Nordic hydropower reserves slowed their rise last week (week 29) to be at 71.7% of capacity, or 90.99TWh. however, stocks continued to narrow their surplus the same week last year, with the deficit to the 19-year average widening to the highest since week 19.
• Swiss hydropower reserves last week increased by 3.6 percentage points last week to 79.4% of capacity, widening the premium to the five-year average to the highest since the second week of January, BFE data showed.
• Endesa has increased hedged power volumes for 2024, 2025 and 2026, it said during the H1 results.
• Enfinity and A2A Group signed a 10-year PPA in Italy for 134MW of solar PV energy, the firm said.
• Czech energy company Cez has started negotiations with KHNP on the contract for two new nuclear reactors at the 1GW Dukovany power plant, with the contract to be signed in March 2025, the Prague stock exchange said today.
• Poland has submitted its PLN4bn (€930mn) draft mechanism to support the application of energy storage facilities, with the program to be implemented over 2024-28, the government said, cited by ISB News.