Mid-Day Power Summary: France August Leads Losses

France August power base load is leading losses in CWE with a downward revision in maximum temperatures for next week, while declines in EU gas prices are adding further pressure. The French-German August spread has widened to the highest since 19 June.

• France Base Power AUG 24 down 5% at 45 EUR/MWh
• Germany Base Power AUG 24 down 1.3% at 76.8 EUR/MWh
• EUA DEC 24 up 1.5% at 71.75 EUR/MT
• TTF Gas AUG 24 down 2.2% at 32.95 EUR/MWh
• Rotterdam Coal AUG 24 up 0.4% at 106.05 USD/MT
• Front month TTF prices are pulling back today with bearish fundamentals, a downward revision in temperatures for NW Europe next week while supply risks appear reduced.
• EU ETS Dec24 rebounded from earlier lows in another choppy session, struggling to show a clear direction. Investment funds positioning in EU ETS futures on the ICE Exchange has turned more bearish for the fifth consecutive week with net short positioning increasing to the highest since mid-April with the latest Commitment of Traders data as of 28 June.
• The latest bi-weekly Polish Primary Market Auction (Phase 4 - CAP3) cleared higher at €68.84/ton CO2e, compared with €67.75/ton CO2e in the previous auction on 19 June according to EEX.
• Australian coal exports to Germany and France moved down on the month in June to hit the lowest for any month so far this year, while a similar trend was seen on the quarter in Germany, data from Marcura show.
• The results from the German onshore wind tender on 1 May were undersubscribed, however, submitted capacity by bidders reached the highest volume since at least 2017, Bnetza data showed.
• In France, EdF has extended the outage at the 880MW Bugey 5 reactor to 22 July, from 3 July previously scheduled. Output will be reduced to 221MW.
• The EC has approved a €10.82bn support scheme for French offshore wind, with the measure to fund two offshore wind farms with a combined capacity of 2.4-2.8GW, the EU said.
• Congestion of the EU’s power grid increased last year and cost the bloc €4.2bn in 2023, ACER said in a report.
• Investment funds net short positions in ICE German power futures turned the most bearish since 24 May to continue its downward trend, according to the COT data for the week of 28 June. This may indicate price falls of German power forward contracts in the short term.
• Engie and Google announced to extend one existing PPA and to sign a new PPA in Belgium for a total of 118MW of renewable energy, Engie said.
• Statkraft has signed a PPA with Luminous Energy to purchase power from a 29MW solar PV farm in the UK for the duration of seven years according to Renews Biz.
• Company Ocean Winds has started producing power at its 882MW Moray West offshore wind farm in Scotland, with full commissioning on track for 2025.
• Finland’s TVO has extended the unplanned outage at the 1.6GW Olkiluoto 3 reactor by eight days until 13 July, remit data showed. Capacity will be reduced by 130MW on 3-13 July.