(March 24): France is on track for its highest level of nuclear generation for March since 2019, helping to support power markets across Europe amid the energy shock caused by the war in the Middle East.
French reactors are running more steadily, allowing them to nearly double power exports compared with last year, according to data from network operator RTE.
Europe is facing a surge in wholesale power prices, driven by its reliance on imports that have been disrupted by the US's and Israel’s war on Iran. Benchmark European natural gas prices have risen sharply as the conflict hit key energy infrastructure and supply routes. Governments are increasingly concerned about the impact on households and businesses as higher costs feed through the economy.
“French nuclear is running overtime — it not only makes up for a very high share of domestic power use but also covers quite a lot of demand from neighbouring markets which have much higher power prices,” said Florence Schmit, energy strategist at Rabobank. “The French nuclear fleet together with rising renewable capacity in all European power markets is effectively shielding prices from rising further on the back of actual gas supply concerns.”
French nuclear generation has averaged more than 44GW so far in March, on track for the highest for the month since 2019. Meanwhile, exports have averaged about 11.5GW for March so far, according to RTE.
See also: Iran war creates energy crunch for export giant Australia
France is one of the few European countries with a large nuclear fleet after others, such as Germany, shut their reactors. This has helped keep French power prices lower than in neighbouring markets while also making the country a key supplier when the regional system tightens.
French power futures for delivery in April are up 54% so far this month, according to EEX. The European gas benchmark is up about 65%, according to ICE.
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