Mid-Day Power Summary: CWE Power Rallies on Gas

German front-month power base load is rallying to the highest since 8 January, matching gains in the European gas market and widening the front-month spread to the French market to the highest since mid-April.

• France Base Power JUL 24 up 6.1% at 47.3 EUR/MWh
• Germany Base Power JUL 24 up 9.9% at 87.25 EUR/MWh
• EUA DEC 24 up 3.4% at 76.65 EUR/MT
• TTF Gas JUL 24 up 10.1% at 37.665 EUR/MWh
• Rotterdam Coal JUL 24 up 4.4% at 126.8 USD/MT
• German and French base load prices for delivery on 4 June diverged, with prices in France increasing amid lower nuclear generation, while Germany declined slightly amid strong renewable forecasts.
• TTF surges to the highest since December amid supply concerns as the Norway unplanned outages at Nyhamna and Easington are extended and now expected to last until at least Wednesday according to Gassco.
• The EU ETS Dec 24 is rallying today to the highest since 23 May, supported by sharp gains in European natural gas prices and lower allowances supply from September onwards following the outcome of the latest TNAC.
• The European Commission announced the TNAC on the European carbon market on 1 June, reducing the auction volume by 267 million between Sept 24 and Aug 25 according to a statement.
• The confidence in the European carbon market’s ability to drive decarbonization in the region has fallen by around 6% year on year, according to the latest annual State of the EU ETS report, co-authored by BNEF.
• Parts of the Rhine river in southern Germany were closed to cargo shipping on Monday after heavy rains raised water levels, the German inland waterways navigation agency WSA said.
• European coal-fired electricity generation could be almost phased out as soon as 2028, with the share of coal output in the European electricity mix falling to 0.5% according to BNEF.
• Belgium and Germany have signed a letter of intent to assess the possibility of building a hybrid power link between offshore wind farms of both countries.
• Finland’s Olkiluoto 3 nuclear is scheduled to be offline until Tuesday morning after a turbine failure was reported on Monday morning, Gassco remit data showed.
• TSO Svenska Kraftnat has lowered the risk of power outages for the next four winters from a year ago as power demand is estimated to increase at a slower rate, while the expansion of the power grid will raise north-south transmission capacity, the TSO said today.
• The unplanned outage at Poland’s 1.08GW Kozienice 2 B11 coal-fired unit has been further extended to 8 June, remit data showed.
• Turkey’s Fortis Energy will build 509MW of wind in Serbia, with the projects expected to be finalised by the end of 2028, according to the firm.