Mid-Day Power Summary: France July Rallies

France front curve power contracts are rallying amid potential power generation disruptions due to planned strike action while power demand is expected to rise from mid-June as forecast suggested warmer weather. Gains in the French market also supported the Spanish front month contract, while CWE contracts are trading lower amid losses in the energy complex.

• France Base Power JUL 24 up 7.7% at 44.89 EUR/MWh
  
• Germany Base Power JUL 24 down 2% at 74.74 EUR/MWh
• EUA DEC 24 down 1.3% at 71.15 EUR/MT
• TTF Gas JUL 24 down 2.2% at 32.95 EUR/MWh
• Rotterdam Coal JUL 24 down 0.6% at 110.8 USD/MT

• TTF front month is falling back to the lowest since May 21 with the recovery in Norwegian pipeline supplies following the unplanned outage this week while temperatures across much of Europe look cool in the coming week.
• The EU ETS Dec 24 contract has pulled back today, amid losses in European gas prices. Sluggish European industrial data and bearish sentiment from speculators have weighed on carbon allowances this week.
• The latest weekly German EUA CAP3 auction cleared today at €69.90/ton CO2e, the lowest since mid-May and down from €74.49/MWh in the previous auction held on 31 May according to EEX.
• Investment funds are expecting a future hike in the price for UK Carbon allowances, with net long position reaching an all-time high, according to BloombergNEF.
• The Rhine river in south Germany reopened to cargo shipping on Friday, as water levels dropped for the third consecutive day according to the WSA, cited by Reuters.
• Rhine river water levels are forecast to rise early next week, which could trigger a sailing ban on parts of the river, Mitchell van der Hoeven, broker at Riverlake, said, cited by Bloomberg.
• France’s CGT union on Friday said it had filed a strike notice for the period between 14 June and 13 September to revise salary scales in the energy sector, La Tribune reported. First industrial action will start on 20 June covering workers in the natural gas and power sectors.
• France’s 497MW Fecamp offshore wind farm commissioned the last outstanding capacity on Thursday, EdF said.
• Germany reached an in-principle agreement with the EU for state support for the country’s plan to tender 10GW of hydrogen-ready gas-fired capacity, paving the way to start tenders this year, sources told Reuters.
• Finland is aiming to ban all Russian gas imports by next winter, according to the economy ministry cited by Montel.