Mid-Day Power Summary: German-French M1 Spread Widens

German front-month power has reversed earlier losses to trade higher, widening the spread to the French market that is pulling back today, with support from higher European carbon allowances while European natural gas prices are holding onto losses.

• France Base Power AUG 24 down 0.4% at 49.85 EUR/MWh
• Germany Base Power AUG 24 up 0.5% at 71.25 EUR/MWh
• EUA DEC 24 up 1% at 65.36 EUR/MT
• TTF Gas AUG 24 down 0.9% at 31.54 EUR/MWh
• Rotterdam Coal AUG 24 up 1.1% at 109.1 USD/MT
• TTF edges lower after a slight recovery yesterday as front month has bounced between €30.325/MWh and €33.285 in the last couple of weeks. Muted demand and healthy storage are set against supply risks.
• EU ETS Dec 24 has recouped earlier losses to trade higher on the day but remains within yesterday’s range. The latest EU ETS CAP3 EU auction cleared at €63.67/ton CO2e, down from €64.37/ton CO2e in the previous auction according to EEX.
• The IFA 1 Mandarins-Sellindge 1 interconnector has an unplanned outage for one week until 29 July, reducing capacity in both directions, remit data showed.
• France added around 1.01GW of PV in 2Q24, with additions potentially reaching a record this year if the current rate of expansion continues into the 2H, operator Enedis said.
• Germany’s latest solar PV tender for rooftop and noise barriers installations was again oversubscribed, while the average achieved price remained relatively low due to high demand according to Bnetza.
• Germany’s grid operators applied with Bnetza for the country’s core hydrogen grid network which will gradually start up until 2032.
• The UK could need new gas-fired power plants amid the need for more baseload power, a study from the NEPC showed.
• Shell wants to sell its share of its 5GW Scottish floating offshore wind farm lease it jointly owns with Iberdrola’s Scottish Power, according to Bloomberg.
• Statkraft has revised down its renewable capacity additions targets and now aims to develop 2-2.5GW of new solar, onshore wind and battery storage per year from 2026, according to the Q2 results.
• 140MW of capacity on the unilateral auction between Ukraine-Poland is on offer for August delivery, down from 180MW in July, PSE data show.