A short view of European power prices

French nuclear availability continues to drive European power prices, with French Winter-23 power prices remaining elevated. 3 new cracks announced by EDF on March 6th show the continuing maintenance issues the fleet faces, with recent EDF worker strikes delaying schedules of work. Currently 12 of EDF’s 56 reactors have been halted for repairs.

Germany has recently ceased operation of all nuclear power plants, with the gap being primarily filled by higher coal plant load factors. Across Europe, low hydro stocks are also driving some of the Winter-23 premium, with the risk of droughts this summer.

In GB power markets, after gas and power prices have settled from recent falls, elevated summer power prices and a smaller seasonal spread are in play. This is partially driven by gas market prices, gas storage & switching dynamics alongside suppressed carbon prices.