Mid-Day Power Summary: CWE Power Rallies

The German power curve is rallying today amid gains in the European natural gas prices. German front-year power base load has surged to the highest so far this year, while the French equivalent has been rising to the highest since 5 January. CWE June power prices are also up on the day amid forecasts for low wind and gains in the wider energy complex.

• France Base Power JUN 24 up 4.5% at 42.41 EUR/MWh
• Germany Base Power JUN 24 up 2.3% at 76.45 EUR/MWh
• The German 4Q 2024 power base load contract has widened its premium to the French equivalent to the highest since contract start today, as gains in natural gas market are supporting the German market, while French nuclear availability well above the seasonal norm is keeping a lid on French gains.
• French and Germany day-ahead peak-load prices increased on the day amid low renewable forecasts tomorrow and firm power demand. Wind in Germany and France is expected to fall further on Friday – which could support both base-load and peak-load power prices over the period.
• Investment funds decreased long positioning in ICE German power futures fell slightly last week, with net short positioning increasing to the most bearish since 26 April, according to the commitment of trader’s data for the week of 17 May.
• TTF front month extends the recent rally to the highest level since mid-April, likely supported by higher cooling demand next week and low wind generation in NW Europe to add to LNG supply risks from increasing Asia demand.
• EU ETS Dec 24 prices removed most of the earlier gains to edge only slightly higher in a choppy session. The latest Commitment of Traders data showing investment funds net short positioning in EU ETS futures turning the most bearish since early May.
• The latest Polish Primary Market Auction (Phase 4 - CAP3) cleared at €74.31/t CO2e, up from €68.99/ton CO2e in the previous auction and the highest level so far this year according to EEX.
• EdF has completed fuel loading into the new 1.3GW Flamanville 3 reactor and will link the reactor to the power network this summer, French Industry Minister Roland Lescure said Wednesday, cited by Bloomberg.
• Swiss hydropower reserves rose by 4.1 percentage points last week to 23.7% of capacity as of 20 May, narrowing the deficit to the five-year average to the lowest in three weeks, BFE data showed.
• The UK government said on Wednesday it is planning to build a new large-scale nuclear power plant in Wylfa, on the island of Anglesey, north Wales.
• Scottish energy company SSE has delayed commercial operations at its 1.2GW Dogger Bank offshore wind farm to 2025 due to turbine installations and supply chain troubles, according to the firm, cited by Renews.biz.
• Europe needs to double the annual investments in electricity grids to €67bn over the next 25 years due to rising demand and the risks to miss decarbonisation targets, according to Eurelectric’s new Grids for Speed study released on Wednesday.
• EU PPA prices rose to the highest since 16 April on 21 May – edging up by €0.32/MWh – supported by gains in the energy complex on Tuesday, according to latest data from energy pricing firm Pexapark.