POWER: End of Day Summary; FR-DE Front-Month Discount at Multi-Month Low

The France-Germany front-month power base-load discount is on track to close at the narrowest since around the end of June as France is leading gains amid TSO Rte raising the curtailment ceiling over September from August. Both markets are also being supported by increases in EU gas and emissions, with coal also placing upward pressure.

• France Base Power SEP 24 up 9.3% at 73.69 EUR/MWh
• Germany Base Power SEP 24 up 4% at 90.85 EUR/MWh
• EUA DEC 24 up 1.6% at 71.62 EUR/MT
• TTF Gas SEP 24 up 2.8% at 38.72 EUR/MWh
• Rotterdam Coal SEP 24 up 0.8% at 119.75 USD/MT
• The TTF contract is ending positively amid tightening Norwegian supplies, with heightened supply risks from tensions in Ukraine-Russia and the Middle East, however, EU storage levels are still high – capping gains.
• EU ETS Dec24 is tracking gains in the wider energy complex, with the latest EU ETS CAP3 EU auction cleared higher at €70.17/ton CO2e from €69.28/ton CO2e – possibly adding some support.
• RTE is expected to reduce power exports on France’s eastern borders – Belgium, Germany, Switzerland and Italy - from 2-29 September, if the value of exports exceeds 10GW vs 8GW in August.
• Swiss hydropower reserves quickened their increase to end their 8-week slowing trend and end at 84.8% of capacity in week, however, stocks narrowed their surplus to 1997 avg the lowest since 24 June.
• Spanish hydropower reserves fell sharply on the week to 50.9% of capacity at the end of week 34 compared to 52.3% in week 33.
• EEX and the EPEX SPOT will include their “future-to-spot” service in their Nordic power market from October, allowing for participants to bid in day-ahead auctions.
• Firm Enfinity Global is planning to develop and build 1.5GW of PV capacity in Italy, after having scooped up a €500mn financing agreement.