German Day Ahead Climbs to 7-Week High

The German and French day-ahead baseload contracts both increased, with Germany leading gains amid upward revisions of power demand and low wind pushing prices to the highest since 25 June, while France was supported by a decrease in nuclear output amid continued issues with high river temperatures.

• The German day-ahead spot settled at €108.01/MWh from €99.74/MWh on the previous day.
• The French day-ahead spot cleared at €86.15/MWh from €82.91/MWh on the previous day.
• German wind is expected at just 4.78GW, or a 7% load factor on 14 August and will fall the next day to a 6% load factor – which could raise prices from the previous day. But over 19 August (Mon) wind will only be at an 8% load factor – likely raising prices from the weekend amid higher demand and despite more wind compared to 18 August.
• German power demand over 14-17 August has been revised up over the period, with the highest upward revision recorded on 14 August at +456MW. Demand is forecasted between 52.5-54.1GW over 14-16 August, dropping to 41-45GW over 17-18 August, ECMWF shows.
• In France, wind forecast point to output at 2.04GW, or a 10% load factor on 14 August, rising to an 11% load factor the next day, which could keep FR at a discount to Germany and weigh on power prices.
• French nuclear availability declined to 73% of capacity as of Tuesday morning, down from 76% on Monday, RTE data showed, cited by Bloomberg.
• EdF is cutting nuclear generation at the St Alban, Bugey, Tricastin and Golfech nuclear plants this week amid forecasts for high temperatures at the Garonne and Rhone rivers.