Mid-Day Power Summary: France-Germany Sept Spread Narrows

The France-Germany September power base-load spread has narrowed to the lowest since 25 July, amid more pronounced gains in the French market. CWE front-curve futures are trading higher amid gains in the energy complex, while Nordic power futures are trading lower due to wetter weather forecasts.

• France Base Power SEP 24 up 5.7% at 60.6 EUR/MWh
• Germany Base Power SEP 24 up 1.9% at 85.47 EUR/MWh
• EUA DEC 24 up 2.5% at 70.95 EUR/MT
• TTF Gas SEP 24 up 2.1% at 36.625 EUR/MWh
• Rotterdam Coal SEP 24 up 2.3% at 119.5 USD/MT
• Font-month TTF is holding at the highest since 13 June supported by increased geopolitical risks in the Middle East while warm weather adds to cooling demand in Europe and LNG competition from Asia.
• EU ETS Dec24 is tracking gains in the wider energy complex, while Sept 24 emissions are down, weighed on by increased auction volumes on the year.
• The revised individual EUA auction volumes for September-December 2024 auctions are at 3,287,500 EUA for the EU CAP3 Auction, up from 3,035,500 EUA in the same period in 2023 but below the preliminary volumes of 4,427,000 EUA.
• The latest EU ETS CAP3 EU auction cleared at €68.07/ton CO2e, up from €66.55/ton CO2e in the previous auction.
• European industrial emissions increased by 1.3% on the month in July, according to Kayrros, but remained 15% lower than the 2021-2023 average according to BNEF.
• EdF may reduce production at the 2.62GW Golfech nuclear complex until 10 August, from 9 August previously scheduled, due to high temperatures on the Garonne river, remit data showed.
• The start of planned works at 880MW Bugey 5 has been delayed to 3 August from 2 August, with the unit to return on 11 November, latest remit data show.
• High energy prices and less reliable supply are impacting German production and investment, leading to an increase in the number of companies considering moving abroad, a survey showed.
• Italian hydropower reserves extended the previous week’s decline to fall to 3.73TWh as of the end of calendar week 30, narrowing the premium to the five-year average, Entso-E data showed.
• Sweden and the US have entered into a cooperation agreement to support the development of nuclear in their respective countries as Sweden aims to install an additional 2.5GW of capacity by 2035, the Swedish government said.
• The planned maintenance at Fortum’s 507MW Loviisa Block 2 nuclear reactor will start one day later on 4 August, remit data showed.