2 days ago
Report of defects at French nuclear reactor Civaux 2 lifts European power market
PARIS, June 11 (Reuters) - The price for front-year baseload power contracts in France climbed 8.3% to 68 euros ($77.76) per megawatt hour (MWh) on Wednesday, driven by a report of possible renewed stress corrosion at a nuclear reactor in central France.
The increase sent the contract to a four-month high.
French newspaper La Tribune on Tuesday reported that nuclear watchdog ASNR had identified "hints" of stress corrosion at the Civaux 2 reactor run by state-owned utility EDF.
The watchdog did not immediately respond to a request for comment.
EDF dealt with stress corrosion cracks in the same reactor less than three years ago, when corrosion in multiple reactors nationwide forced nuclear output in France to a 34-year low and sent prices skyrocketing.
A spokesperson for EDF said an inspection was underway at Civaux 2 as part of annual maintenance and the utility does not yet have the results.
Potential defects at the Civaux 2 site are causing concerns of another shock in the European power and gas markets, analysts and a trader said, as the return of stress corrosion could cause extended shutdowns.
News of risk to the French fleet is the main driver for gas on Wednesday as there is just so much risk ingrained in the potential outages, a trader told Reuters.
French nuclear operator EDF had to shut down some of its fleet in 2022 and 2023 after stress corrosion defects were found on the pipes of the safety system at multiple reactors, which contributed to a surge in power market prices at the time.
The latest reports are "risking a revival of tensions on Europe's power market," analysts at DNB noted, while Mind Energy analysts attributed the rise in European gas markets and the European front-year baseload contracts to the same news.
Benchmark European front-month gas contracts were also higher, up 1.7% at 35.4 euros/MWh.
($1 = 0.8745 euros)
