Skip to content
You can now search across every topic, entity and event.What's new
European Energy Markets
3AUG

France follows Germany as spread narrows

2 min read
10:53UTC

French day-ahead means rose from EUR 74.53/MWh on 27 July to EUR 129.93 by 31 July, leaving Germany dearer by only EUR 7 to EUR 17 against the EUR 43.09 discount France held on 26 July.

EconomicAssessed
Key takeaway

France rose with Germany, cutting a EUR 43 discount to single digits in five sessions.

France cleared a EUR 74.53/MWh day-ahead mean on Monday 27 July, then EUR 102.35, EUR 115.70 and EUR 115.61 across the three sessions that followed, reaching EUR 129.93 by mid-morning on Friday 1. France, whose fleet is roughly two-thirds nuclear and largely insulated from the wind swings that move German prices, rose anyway. It rose by EUR 27.58/MWh between 28 and 31 July against Germany's EUR 30.40. France absorbed almost the entire German move.

That leaves Germany dearer by roughly EUR 7 to EUR 17/MWh through the week, an order of magnitude narrower than the EUR 43.09 France held below Germany on Sunday 26 July . The pattern is not new: the same spread compressed to EUR 18 to EUR 26 in early July before reopening.

France and Germany trade into a single day-ahead market coupling arrangement with finite interconnector capacity, so as long as the cable is not congested the two zones converge on whichever plant is marginal across the region. Once German gas turbines are setting that price, French nuclear does not price independently of them; it prices against them, at a discount limited by transfer capacity rather than by its own cost stack. A position long France against Germany on a nuclear-cost thesis therefore shrinks every time the German spark spread turns positive, which is the opposite of how such a spread is usually sold.

Deep Analysis

In plain English

Electricity prices in France rose over the same days as Germany's, but by a smaller amount, because the two countries generate power differently. Germany relies more on wind, and when wind dropped, German prices jumped sharply. France gets most of its electricity from nuclear power stations, which kept running steadily, so French prices rose more gently. That reopened a gap where German electricity is now more expensive than French electricity again.

Deep Analysis
Root Causes

France's day-ahead price moving up in step with Germany's, but by less, reflects the same wind collapse affecting both grids unequally: France's generation mix leans on nuclear baseload (39.07 GW flat through the period) rather than the onshore wind whose loss drove Germany's surge, so France absorbed the same demand-side pressure without losing the equivalent volume of low-cost supply.

The reopened EUR 7-17/MWh premium is therefore a reappearance of the structural nuclear-long France against carbon-and-wind-exposed Germany trade that has flipped sign repeatedly this cycle , not a new dynamic; the premium narrows or inverts whenever a French-specific event, a reactor outage or a demand trough, moves independently of the German wind and gas story.

What could happen next?
  • Meaning

    The reopened German premium confirms the two markets' price relationship is currently set by relative exposure to wind variability rather than by any lasting shift in French nuclear output.

First Reported In

Update #31 · Caverns restart, 21 points short of November

Fraunhofer ISE energy-charts· 31 Jul 2026
Read original
Different Perspectives
Cross-border power traders
Cross-border power traders
The France-Germany day-ahead spread flipped from a EUR 17.20 German premium on 1 August to a EUR 4.15 French premium on 3 August, the same day French curtailment peaked. They cannot yet attribute the flip to curtailment alone, since a like-for-like overnight comparison shows French nuclear output rising while wind fell and demand returned on the weekday step.
EDF
EDF
River-cooling limits took 7.6 GW, 12 per cent of its fleet, offline on 3 August, the highest curtailment since the heatwave began, with an easing forecast to 4.3 GW on 4 August and 3 GW after. It manages the cut as a recurring seasonal constraint, expecting it to lift with river temperature, not repair.
Gasunie
Gasunie
TTF, the Dutch hub it operates, drifted to roughly EUR 55 to 58 per MWh across the window, staying inside its recent range through both the German spark reversal and the French curtailment. It reads a flat hub price as evidence that neither event this window carried enough weight to move the fuel leg on its own.
German gas-fired generators
German gas-fired generators
Record German solar of 18,761 MW on 2 August pushed the clean spark spread to minus 18.48 EUR/MWh, a loss-making day, before it returned to plus 16.20 on 3 August. They now price dispatch against post-solar residual load rather than wind alone, since the sign flipped inside 48 hours on unchanged fuel and carbon costs.
European Commission (DG Energy)
European Commission (DG Energy)
Its implementing-measures register logged transposition notices from only Portugal and Slovakia against Wednesday's Article 94 deadline for Directive (EU) 2024/1788, with 25 states silent. It expects the register to fill only gradually, since filing routinely lags legislating and any infringement track against non-notifying states runs on a slower clock than the deadline itself.
Spain's LNG terminal operators
Spain's LNG terminal operators
Spain's 9,145 GWh terminal inventory is the largest single stock in the EU LNG network, an option value that can reroute cargoes wherever the winter strip pays best rather than a cavern gas obligation tied to a fixed date. That flexibility matters more as Germany's cavern shortfall pushes more of the winter security question onto import infrastructure.