Mid-Day Power Summary: German July Struggles to Find Direction

Germany July power is struggling to find a clear direction despite gains in European gas and carbon allowance prices.

• France Base Power JUL 24 down 2% at 44.94 EUR/MWh
• Germany Base Power JUL 24 up 0.1% at 76.41 EUR/MWh
• EUA DEC 24 up 0.2% at 70.95 EUR/MT
• TTF Gas JUL 24 up 1.9% at 34.9 EUR/MWh
• Rotterdam Coal JUL 24 down 0.4% at 110.5 USD/MT
• TTF front month is trading higher today supported supply fears amid an outage at Chevron’s Wheatstone gas facility in Australia after the recent Norway disruption and with concern for competition for LNG supplies from Asia.
• Chevron’s Wheatstone offshore gas facility in Australia has suspended production to complete repairs to the fuel system, according to a company statement cited by Bloomberg.
• The EU ETS Dec 24 are trading higher today but erased some earlier gains, tracking gains in European gas markets.
• The latest EU ETS CAP3 EU auction cleared at €70.31/ton CO2e, up from €67.82/ton CO2e in the previous auction when it fell to the lowest since mid May according to EEX.
• The European carbon market deficit is estimated at 50-100 million tons in 2023/24, compared with above 300 million tons in 2022 (see chart) according to Bloomberg Intelligence.
• In Germany, EnBw’s 778MW Heilbronn Block 7 hard-coal plant is scheduled to return today. Works on the unit started in January 2023, remit data showed.
• EdF’s 1.5GW Chooz 2 reactor maintenance has been extended by two days until 14 June.
• The Norwegian and Ukrainian energy ministries have entered into an energy cooperation agreement after Russian attacks have severely crippled Ukraine's energy infrastructure, the Norwegian government said.
• Ukraine expects more European companies to use its gas storage by September and is in talks with more than 100 firms despite ongoing Russian attacks on its gas infrastructure in recent months, according to the CEO of Naftogaz cited by Bloomberg.
• Sun Investment Group (SIG) will build 1.97GW of solar PV projects in Poland as it has secured debt financing for the projects, German-based financial advisor Capcora said.