French Power at Record Discount to Germany on Cheap Nuclear #NewsGerman

(Bloomberg) — French year-ahead power prices traded at a record discount to those in Germany, underlining France’s strong nuclear generation and its neighbor’s continued reliance on gas.

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French power futures for 2026 are about 27% cheaper than the equivalent contract in Germany, according to data from European Energy Exchange. Nuclear power output in France reached its highest level since 2019 this month, pushing down futures to a three-year low.

While the energy transition may potentially bring lower long-term costs across Europe, the intermittency of solar and wind power means countries are facing short-term price spikes. France has smoothed those out with its nuclear fleet, but Germany is relying on more expensive gas and coal-fired stations after shutting its last atomic plant in 2023.

“The market is pricing on that France will be much faster to decouple from marginal costs of gas-fired generation compared with Germany,” said Sabrina Kernbichler, lead power analyst at Energy Aspects Ltd.

Kernbichler also highlighted that this is the first winter since Germany closed a number of coal and lignite units last April.

“German prices remain more exposed to price spikes now as evidenced this winter,” she said.

Electricite de France SA’s French nuclear production climbed 13% to 361.7 terawatt-hours last year from 2023, as it improved unit outage performance, industrial control of inspections and repairs related to stress corrosion. Energy Aspects expects the utility to maintain generation at around 350 terawatt-hours in the coming years, helping to keep French power prices in check.

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