POWER: EU Mid-Day Power Summary: CWE October Lacks Direction

CWE front-month power futures are trading stable in a choppy session amid no clear direction in the wider European energy complex. The French-German October power spread is slightly down on the day but still at the highest so far this month. 

• Nordic Base Power OCT 24 up 0.4% at 25.9 EUR/MWh
• France Base Power OCT 24 up 0.3% at 56.83 EUR/MWh
• Germany Base Power OCT 24 up 0.1% at 76.41 EUR/MWh
• EUA DEC 24 up 0% at 64.12 EUR/MT
• TTF Gas OCT 24 down 1.5% at 35.675 EUR/MWh
• TTF is pulling back after initial gains failed to break through last week’s high with unchanged fundamentals and ongoing supply risks from Norway, the Middle East and the US Gulf of Mexico.
• EU ETS Dec24 is currently trading stable with a lack of direction from European gas markets while the 2023 emissions deadline next week continues to be supportive. The September options contract will expire on Wednesday.  The high open interest for September puts with the strike price at €65/ton CO2e and €60/ton CO2e could add volatility.
• The latest EU ETS CAP3 EU auction cleared lower at €63.91/ton CO2e, down from the previous day at €64/ton CO2e
• Italy is planning to file an official proposal this week to bring forward the review of the EU’s planned combustion engine vehicle ban from 2035 by one year to 2025.
• The COP 28 goals to global triple renewable energy capacity and to double energy efficiency by 2030 are feasible due to favourable economics, ample manufacturing potential and strong policies, IEA said.
• Dividing Germany's power market into zones could lead to a €10/MWh discount in the north by 2025, however, it won't be as beneficial as expanding the grid, according to a study.
• Spanish hydropower reserves declined further to 47.9% of capacity as of week 38, down from 48.6% of capacity the week prior.