Mid-Day Power Summary: France June Power Edges Lower

France June power base load is edging lower today, widening the spread to the German equivalent, amid high nuclear availability and limited expectations for a significant pick up in cooling demand at the beginning of next month, shrugging off gains in the wider energy complex.

• France Base Power JUN 24 down 0.7% at 33.95 EUR/MWh
• Germany Base Power JUN 24 up 1.3% at 71.93 EUR/MWh
• EUA DEC 24 up 1% at 74.57 EUR/MT
• TTF Gas JUN 24 up 1.2% at 34.275 EUR/MWh
• Rotterdam Coal JUN 24 down 0.7% at 113.75 USD/MT
• The latest ECMWF weather forecast suggests temperatures in Paris to be below the seasonal norm until 4 June, after which temperatures turn slightly above normal until 8 June, before falling back lower. Maximum temperatures in Paris have been revised lower and are now forecast to reach 24C on 6 June. However, temperatures in the South are forecast to rise gradually from early June, likely supporting cooling demand.
• French nuclear availability was stable on the day at around 43.23GW, or 70% of capacity, this morning, RTE data cited by Reuters showed.
• European natural gas prices are edging higher today in a choppy session amid a small recovery in Norwegian pipeline flows and strong seasonal gas storage levels, weighed against risks to a halt of Austrian gas supplies from Russia and increased LNG competition from Asia.
• EU ETS DEC 24 is also edging higher today. The EU ETS CAP3 EU auction cleared lower at €72/ton CO2e today, down from €72.90/ton CO2e held on 28 May according to EEX.
• The German Epex Spot day-ahead base load edged lower to €89.22/MWh, down from €97.45/MWh the day before amid a slight rise in forecasts for wind output with losses limited as demand is expected to pick up on Friday after the regional holiday. The Dutch spot index fell amid forecasts for higher wind and lower demand.
• Germany will scrap the gas storage levy at its border starting from January 2025, after receiving pressure from European neighbouring states, according to Sven Giegold, Germany’s state secretary for economic affairs and climate action, cited by Bloomberg.
• France has raised its power transmission capacity for cross-zonal trading last week after RTE’s interconnection capacity for cross-zonal trading had fallen to 40% from mid-March to mid-April, Creg told Montel this week.
• Spanish support for gas-fired power plants with capacity mechanisms is “urgent and necessary,” president of Spanish Gas Association Joan Batalla said, cited by XM.
• Endesa’s 1.045GW Vandellos 2 nuclear reactor will undergo planned maintenance until 5 June, after which unplanned works will take place from 5-8 June, remit data showed. Maintenance started on 27 April.
• Small modular nuclear reactors (SMRs) are still too costly, slow to build, and risky to play a substantial role in transitioning from fossil fuels in the next 10-15 years, the Institute of Energy Economics and Financial Analysis (IEEFA) said.