POWER: End of Day Power Summary: FR-DE February Discount Narrows Sharply
German February power contract is moving lower from the midday session amid the extended downside from TTF. In contrast, cooler weather forecasts and nuclear extensions support the French equivalent, with the FR-DE narrowing to €7.67/MWh from €9.74/MWh in the previous session.
- Nordic Base Power FEB 25 down 5.1% at 41.75 EUR/MWh
- France Base Power FEB 25 up 0.6% at 104.3 EUR/MWh
- Germany Base Power FEB 25 down 1% at 112.3 EUR/MWh
- EUA DEC 25 up 1% at 75.97 EUR/MT
- TTF Gas FEB 25 down 1.3% at 49.6 EUR/MWh
- Rotterdam Coal FEB 25 down 1.3% at 112.25 USD/MT
- February TTF prices are easing today but remain high, driven by persistent supply concerns for 2025. The halt in Ukraine transit flows, colder weather increasing demand, and prolonged work at Norwegian LNG terminals are keeping prices buoyant.
- EU ETS Dec25 prices are climbing today, contrasting with declines in EU gas. Cooler temperatures and reduced wind generation on the week next week are expected to boost demand for thermal power. However, upward momentum may face headwinds with the resumption of EUA auctions on 7 January.
- Financial mechanisms like green bonds, carbon pricing, climate insurance, and venture capital, as seen in Denmark, are playing a crucial role in advancing the transition to carbon neutrality.
- Germany's renewable energy share surged to 62.7% in 2024, with solar power setting a new record of 72.2TWh, accounting for 14% of total electricity generation.
- EdF has extended the outage at its 1.49GW Civaux 1 nuke to 8 January from 5 January.
- Nordic hydropower reserves continued downward for the seventh consecutive week to be at 78.1% capacity, 99.20TWh by the end of week 52, although, stocks widened their surplus to the same week in 2023 to another fresh 2024 high. Reservoirs slowed their fall amid lower demand and firm nuclear generation.
- A Finnish court has denied the release of the Eagle S oil tanker, which is suspected of damaging critical undersea infrastructure in the Baltic Sea, including the 650MW Estlink 2 and telecommunications cables, while carrying Russian oil.
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WHITE HOUSE: Trump Confirms Return Of Navarro To Trade & Manufacturing Role
In a flurry of announcements on his Truth Social platform, President-elect Donald Trump confirms that Peter Navarro, who served as Director of the Office of Trade and Manufacturing Policy during Trump's first term, will return as Senior Counselor for Trade and Manufacturing for his second. Navarro served a four-month prison term earlier this year for contempt of Congress after ignoring a subpoena from the House committee investigating the 6 January 2021 Capitol riot. There is the prospect that Trump could offer Navarro a pardon on taking office, with Trump saying on election day that "he’s a good man, he was treated very unfairly”.
- Trump: "During my First Term, few were more effective or tenacious than Peter in enforcing my two sacred rules, Buy American, Hire American. He helped me renegotiate unfair Trade Deals like NAFTA and the Korea-U.S. Free Trade Agreement (KORUS), and moved every one of my Tariff and Trade actions FAST. [...] His mission will be to help successfully advance and communicate the Trump Manufacturing, Tariff, and Trade Agendas...."
- Navarro is viewed as one of the most hawkish members of Trump's inner circle with regards to trade, not only towards China but also allies such as Germany.
- The president-elect also confirms the nomination of Daniel Driscoll as Secretary of the Army. He most recently worked as Senior Advisor to Vice President-Elect JD Vance. Meanwhile, Michael Whatley is set to return as chair of the Republican National Committee alongside Trump's daughter, Lara. A lead negotiator on the Abraham Accords team ,Adam Boehler becomes Special Presidential Envoy for Hostage Affairs, while entrepreneur and commercial astronaut Jared Isaacman heads up NASA.
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