POWER: EU Mid-Day Power Summary: DE-FR March Power Spreads Narrows

The Germany-France March power base load spread is narrowing to the lowest since 15 January today with more pronounced gains in the French market. Nordic front-month power is edging lower with an upward revision in temperatures and hydro balances weighed against gains in the German power and EU gas market. 

• Nordic Base Power MAR 25 down 0.9% at 44 EUR/MWh
• France Base Power MAR 25 up 3.1% at 93.62 EUR/MWh
• Germany Base Power MAR 25 up 2.3% at 107.55 EUR/MWh
• EUA DEC 25 up 1.5% at 82.3 EUR/MT
• TTF Gas MAR 25 up 2.1% at 54.55 EUR/MWh
• TTF front month is extending gains today with forecasts for cold weather and higher storage withdrawals in recent days.
• EU ETS December 2025 are also holding onto gains, supported by EU gas prices. The latest EU ETS CAP3 auction cleared higher at €79.75/ton CO2e, compared with €79.06/ton CO2e in the previous auction, while flipping to a discount to the futures contract.
• The EU is planning to exempt more than 80% of EU firms, eligible for CBAM, from the planned reforms, EU tax commissioner Wopke Hoekstra said, cited by the FT.
• The UK is set to miss its 2035 emissions-reduction targets as current policies fall short of the required 81% reduction from 1990 levels, with energy advisory DNV forecasting emissions dropping by 68% instead.
• The UK government announced on Wednesday to approve more nuclear power plants across England and Walkes, with a focus on building SMRs.
• Europe needs to increase its power transmission capacity to ensure energy security, Vattenfall’s CEO Anna Borg said.
• EEX European power derivatives grew 37% year-on-year to 811TWh in January.
• Germany needs legislative guidance on how to replace nuclear and coal-fired power generation, instead of reviving nuclear energy, RWE’s CEO said.
• German EV new vehicle registrations stood at 34,498 in January, up by 53.5% on the year, despite a decline in overall registrations.
• Vattenfall has advanced its power hedges for its planned Nordic nuclear and hydropower generation for 2026, while keeping the 2025 hedging ratio stable on the quarter.
• Norway’s Advisory Committee for Fiscal Policy has urged the government to pause investment in offshore wind and discontinue the CO2 and battery investment compensation scheme.