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EU power bourses to hike price cap after French spike

PowerPolicy

04 Apr 2022 08:46

Oslo

04 Apr 2022 08:46

(Montel) EU spot power exchanges will raise their price cap to EUR 4,000/MWh for the European single day-ahead market in five weeks following a record-high French day-ahead price, Epex Spot said on Monday. 

France’s day-ahead contract traded at EUR 2,987.88/MWh for delivery between 08:00 and 09:00 on Monday, with an average of EUR 551.43/MWh, an all-time high. 

This triggers a regulatory process for the European single day-ahead market, raising the current price ceiling from EUR 3,000/MWh to EUR 4,000/MWh, said Maria Schubotz, spokeswoman for Epex Spot, Europe’s largest spot exchange. 

The change is set to be effective 8 May. 

In 2017, Europe’s power exchanges agreed on a methodology for harmonised maximum and minimum clearing prices across the coupled regions. The maximum clearing price must be raised by EUR 1,000/MWh if it exceeds 60% of the maximum clearing price in at least one market’s time unit, in an individual bidding zone or in multiple bidding zones.

“I never thought we would use [this methodology]”, said Miha Pregl, co-chair of the EU single day-ahead market coupling committee, said in a Sunday message on LinkedIn.

Thursday meeting
Power exchanges and TSOs plan to meet on Thursday to discuss the methodology’s outcome. 

In a separate market message, Nord Pool cited reduced nuclear generation, cold weather and limited cross-border capacity, especially from Belgium and Germany, as the main reasons behind the high prices in France.  

French nuclear output provided only 33 GW, which is 7 GW lower than the same day last year, it said. 

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