High French river temperatures expected to limit nuclear power output next week
By Forrest Crellin and Tristan Veyet
French Nuclear Power Output at Risk Amid Rising River Temperatures
EDF Issues Production Warnings
PARIS, June 18 (Reuters) - French state-owned utility EDF warned on Thursday that three nuclear plants face production curbs next week because of high temperatures on the Rhone and Garonne rivers as France grapples with its second heatwave this spring.
Nuclear output in France has been relatively consistent this year as production has continued to recover from lows hit several years ago, but exceptional heatwaves at the end of the northern hemisphere spring have raised water temperatures to levels that put reactors at risk of output curtailment.
Production Limits and Plant Locations
EDF, operator of the country's nuclear fleet, sometimes limits production when temperatures are near a threshold that varies depending on the nuclear plant, with shallower, slower rivers more at risk of facing disruptions.
It issued production warnings for the Golfech and Blayais nuclear plants on the Garonne river in the southwest, as well as the Bugey on the Rhone in the east. It also updated a warning it initially issued last Thursday, saying the Saint Alban plant on the Rhone was likely to be affected from June 23.
Heatwave Intensifies and Broader Impact
Temperature Thresholds at Other Plants
HEAT EXPECTED TO INTENSIFY NEXT WEEK
LSEG data showed that temperatures at the Cruas, Tricastin, Chooz and Nogent nuclear plants are also expected to get close to river temperature thresholds.
Forecasts and Demand Implications
Temperatures are expected to rise further next week, close to 8 degrees Celsius (46.4 degrees Fahrenheit) above seasonal norms in the low 30s on Monday, likely boosting demand for cooling, said analysts at Engie's EnergyScan.
Thermal Restrictions and Output
However, summer thermal restrictions are usually small, accounting for a fraction of a percent of annual output.
Price Impact and Market Effects
Temperature-driven curbs could add up to about €5 per megawatt-hour to prices on the affected days, but should not cause a structural seasonal increase, said AlphaValue analyst Pierre-Alexandre Ramondenc.
If insufficient volumes lead to forced shutdowns, however, this could prompt price swings of several tens of euros per megawatt-hour on intraday peaks and day-ahead prices, he added.
Other Factors Affecting Power Prices
Hydro Availability and Renewable Output
Hydro availability is also limited this year due to a lack of rainfall and snow in autumn and winter, which has lifted forward power prices.
The French spot price has been high too for the season recently, as hot temperatures have combined with low renewable output to raise prices. Market concern about continuing heat is reflected in the French front-month contract, which rose above €60/MWh in recent weeks.
(Reporting by Forrest Crellin and Tristan Veyet; Editing by Philippa Fletcher and Emelia Sithole-Matarise)
