Mid-Day Power Summary: France July Leads Losses

CWE July power prices are pulling back today amid losses in the European energy complex, with the French market leading losses amid a slight downward revision in temperatures, limiting cooling demand expectations.

• France Base Power JUL 24 down 4.9% at 42.8 EUR/MWh
• Germany Base Power JUL 24 down 2.9% at 72.45 EUR/MWh
• EUA DEC 24 down 2.7% at 69.44 EUR/MT
• TTF Gas JUL 24 down 2.1% at 32.43 EUR/MWh
• Rotterdam Coal JUL 24 down 1.4% at 109.1 USD/MT
• TTF front month is drifting down to the lowest since May 21 as supply concerns have eased following the disruption to Norwegian pipeline gas supplies to Europe last week. Gas in stores levels are still healthy despite slow injections rates while demand in the region remains muted.
• The EU ETS Dec 24 is pulling back today amid losses in the European gas prices. Markets are also digesting the outcome of the EU Parliament elections and the meaning for future energy policy as it suggested a high possibility for another term for van der Leyen’s EPP party, which focuses on the bloc’s green transition, while results also showed a swing to the far right.
• The latest EU ETS CAP3 EU auction cleared lower at €67.82/ton CO2e, down from €71/ton CO2e in the previous auction and the lowest since 14 May according to EEX.
• French Renewable developer Neoen has entered into a 25-year solar PPA with SNCF Energie for power supplied from a 139MW solar project in France, the firm said.
• Switzerland voted in favour of the new electricity law on Sunday which supports the ramp up of renewable energies, the government said.
• European power purchased agreements (PPAs) fell to a mid-May low on 7 June, edging down by €0.16/MWh – tracking losses in gas, EU ETS and power in the previous session, according to the latest data from energy pricing firm Pexapark. PPA prices could be dented today amid continued lower prices in the energy complex.
• Swedish TSO Svenska Kraftnat believes that flexible power contracts could increase the amount of power supplied to the grid by 1-2GW, although further work is needed before it is a reality, according to the TSO.
• Swedish day-ahead power prices rose on the day amid an unplanned outage in the SE3 bidding zone, which also supported day-ahead prices across the Nordics. The Swedish day-ahead rose in all four bidding zones between €33.62-62.92/MWh from €28.59-45.71/MWh. The highest prices were in the SE3 and SE4 areas.
• Swedish firm Vattenfall’s 1.17GW Forsmark unit 3 unexpectedly disconnected from the grid at 10:40CET today, with the unit anticipated to be back online on 11 June, although the exact duration is unknown, latest Remit data show.