POWER: End of Day Power Summary: France, Germany Diverge

The German and French power October baseload contracts are ending the session in mixed directions, with Germany supported by increases in emissions and EU gas, while avg temps in Paris towards the end of September are anticipated to rise above norms – limiting heating demand expectations.

• France Base Power OCT 24 down 1.3% at 64.29 EUR/MWh
• Germany Base Power OCT 24 up 1.3% at 80.89 EUR/MWh
• EUA DEC 24 up 2.1% at 66.31 EUR/MT
• TTF Gas OCT 24 up 2.3% at 36.08 EUR/MWh
• EU ETS Dec 24 has extended gains from midday, with support from EU gas prices, while the latest funds positioning turned more bearish and the bi-weekly Polish EUA auction cleared lower at €64.75/ton CO2e, down from €70.39/ton CO2e previously.
• The TTF front-month is trading higher after recovering from yesterday’s drop to €34.67/MWh, with European fundamentals stable despite pipeline cuts and US LNG supply risks from a Gulf hurricane.
• Prices for emissions-free trucks would need to fall by 50% to be an affordable alternative to diesel models.
• UK carbon prices are likely to rise in the coming months, supported by the government’s climate policies.
• Trafigura has stated that confusion is arising due to unclear guidelines for airline carbon credit purchases needed to meet their emissions commitments under the global offsetting scheme Corsia.
• France and the EC are in talks on measures after France missed its binding 2020 renewable energy target,
• Germany plans to launch the first tender for new hydrogen-ready power plants in early 2025.
• Poland plans to request the European Commission’s approval this week for a plan to finance its first nuclear power plant.
• Nordic hydropower reserves increased at the slowest pace since week 31 last week (week 36), with stocks at 80.3% of capacity, or 101.93TWh.