Mid-Day Power Summary: France Slides on Weather

The French August power base-load contract has deepened losses throughout the morning, weighed on by forecasts for cooler weather, reducing cooling demand expectations. German front-month power gave up most of the earlier gains, as higher EUA prices are weighed against lower gas prices.

• France Base Power AUG 24 down 5% at 49.24 EUR/MWh
• Germany Base Power AUG 24 up 0.2% at 76.91 EUR/MWh
• EUA DEC 24 up 1.8% at 68.7 EUR/MT
• TTF Gas AUG 24 down 0.7% at 34.23 EUR/MWh
• Rotterdam Coal AUG 24 unchanged at 107.1 USD/MT
• Front month TTF is edging lower today after initial gains with cool weather in NW Europe this week and steady fundamentals set against import supply risks.
• The EU ETS Dec 24 has been holding onto some gains today amid political uncertainties in Europe, further diverging from TTF prices, and despite NW European manufacturing displaying fresh signs of weakness.
• The latest EU ETS CAP3 EU auction cleared at €67.83/ton CO2e, up from €66.17/ton CO2e in the previous auction according to EEX.
• EUA prices are likely to be supported by increased fossil-fuel generation in July, amid higher demand for cooling and seasonally lower nuclear, wind and hydropower output, despite anticipated higher solar PV output according to BNEF.
• The latest 6-10 day ECMWF weather forecast for Paris suggested temperatures are forecast to be below normal until 4 July, broadly in line with the seasonal norm on 4-7 July, and rising back up above normal for the remainder of the forecast period.
• Gunvor is targeting to invest up to 3GW of solar PV capacity in Italy in partnership with Quercus, the firm said.
• The average price of European PPAs remained relatively firm on the month in June from May, while prices moved up just slightly on 28 June from the previous session amid mixed movements in the energy complex, Pexapark data showed.
• Norwegian firm Deep Wind Offshore has won the auction for the development of an 840MW offshore wind farm in Estonia’s Saare 2.2 area, Estonia’s CPTRA said.
• European Energy and DSB have entered into 80 GWh/yr PPA to supply electricity from European Energy’s solar park in Eastern Denmark, it said.
• Sweden’s Eolus has applied for a permit to build a 2.2GW floating offshore wind farm off the coast of Sweden, with the project expected to be completed by 2033.