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France-German M1 Spread Widens on Cooler Weather

POWER

The French August power base-load contract is trading lower today, weighed on by forecasts for cooler weather, which is limiting expectations for cooling demand, shrugging off gains in the wider energy complex that supported the remainder of CWE.

    • France Base Power AUG 24 down 3.9% at 49.81 EUR/MWh
    • Germany Base Power AUG 24 up 0.8% at 77.31 EUR/MWh
  • The France-Germany August power spread widened to €27.64/MWh as of the time of writing, up from €24.91/MWh as of Friday’s close.
  • The latest 6-10 day ECMWF weather forecast for Paris suggested temperatures are forecast to be below normal until 4 July, broadly in line with the seasonal norm on 4-7 July, and rising back up above normal for the remainder of the forecast period.
  • Power demand in France is forecast to peak this week at 49.95GW on Wednesday, RTE data showed, and at 51.64GW on Wednesday according to Entso-E data.
  • Nuclear availability in France stood at 69% of capacity as of Monday morning, down from 70% as of Friday, RTE data showed.

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