RTE’s announcement this week to curb power exports to its eastern neighbouring countries has further supported price spreads, while net power exports to its neighbours rose on all borders except for Switzerland this July amid improved nuclear availability.

• RTE may reduce its power exports on France’s eastern borders – Belgium, Germany, Switzerland and Italy - from 29 July until mid-October, RTE said late on Tuesday.
• RTE expects cross-border limitations to increase between 29 July and 8 September when the value of the exports on its eastern border exceeds 8GW but may also lower flows with total exports below the 8GW threshold.
• Export curbs are likely to be first applied on the French-Italian border and then on the French-Swiss border. If measures prove insufficient, flows may be reduced on the German and Belgian borders with France.
• Since RTE’s announcement, French front-month power spreads to its eastern neighbouring countries have widened.
• French power exports to its neighbouring countries have risen this summer amid improved nuclear availability, with EdF seeing its nuclear generation this year at the upper end of the 315-345TWh range.
• French net power exports to Belgium stood at 1.97GW on 1-26 July, compared with net power imports of 475MW during all of July last year.
• French net power exports to Belgium averaged 294MW in Q3 last year, with next exports ramping up in September.
• The Belgian August power base-load contract settled on Thursday at a €15.05/MWh premium to the French market, compared with a €2.90/MWh discount on 31 July 2023.
• On the Swiss border, French power net exports stood at 136MW so far this month, compared with net power exports at 1.66GW in July 2023.
• Net power exports from France to Switzerland averaged 1.57GW in Q3 last year.
• France August power base load is trading at a €2.90/MWh discount to the Swiss market at the time of writing, down from a €7.33/MWh discount at the end of July last year.
• In the France-Italy direction, net power exports stood at 2.82GW so far this month, up from 1.71GW for all of July last year.
• In Q3 2023, net power exports from France to Italy averaged 1.99GW.
• Italy August power base load is currently holding a €62.50/MWh premium to the French market, compared with a premium of €26.48/MWh at the end of July last year.
• On the German border, French net power exports averaged 2.85GW so far this month, up from 169MW in July last year. Net exports to Germany in Q3 2023 averaged 746MW.
• The French August power base-load contract is currently holding a €33.55/MWh discount to the German market, compared with a premium €5.74/MWh discount on 31 July 2023.