French winter and other curve power prices jumped Thursday as EDF said late Wednesday that it has revised down its planned nuclear output target for 2016 to 380-390 TWh from the previous 395-400 TWh due to the need for extended outages at some of its nuclear plants.
The core Cal 17 baseload power contract reached a 2016 high on Thursday morning, last seen trading at Eur35.30/MWh, up Eur1.30 from the previous close.
Most other curve contracts also reached their highest levels to date. Q4 baseload power contract rose Eur1.90 from Wednesday's close and was last heard trading at Eur40.55/MWh. November base added Eur2.25 on the day, December climbed also Eur2, while Q1 17 jumped more than Eur2 just in the morning trading session Thursday, last heard at Eur46.65/MWh.
October prices were also impacted, with October peak seen trading at Eur50.75/MWh.
"Amazing...looking at last weeks and postponements it looked more and more unlikely that they meet [the target]...although I always thought maybe the more they reduce now the more they can bring back later," a trader said.
The jump in French prices had a knock-on effect on neighboring markets, with spreads widening Thursday morning.
"France already priced itself above Spain for the peaks mainly...now it is moving up Italy and the UK with it...to attract imports from there they will need to lift those markets further," the same trader said.
Power prices rose Thursday more than they did the last time EDF reduced its nuclear output target this year. EDF announced in July that it revised its 2016 nuclear output target to 395-400 TWh from 408-416 TWh due to the need for "additional controls during the second half of the year in order to demonstrate that some components, mainly steam generators," can operate safely.
ASN asked EDF this summer to undertake some additional on-site safety tests, mainly on the steam generator parts, at 18 reactors during their next planned long outages.
EDF extended outages at three nuclear reactors on Thursday-- Tricastin 1,3,4 -- currently being inspected by the French Nuclear Safety Authority ASN to the end of December, the latest data from French grid operator RTE showed.
EDF's 915 MW Tricastin-1 reactor is now slated to return online December 23 at 23:00 local time, having previously been expected to come back to the grid October 7.
Its 915 MW Tricastin-3 reactor is due to return at the same time with unit 4, having previously been slated to come back online also on October 7.
Finally, the 915 MW Tricastin-4 reactor will now return online on December 19, nearly a month later than previously expected, on November 21.
EDF also delayed the return online of its 1.3 GW Cattenom-3 reactor, which is not offline for ASN inspections, but for annual maintenance. The reactor, initially expected back on September 24, will now return to the grid on December 20.
ASN said in a statement June 23 that some primary bottom heads of steam generators installed at 18 of EDF's 58 reactors could have a "significant" carbon concentration similar to the anomaly found on the reactor pressure vessel at the company's Flamanville-3 EPR under construction in France. High carbon content can reduce fracture toughness of a material, reducing that material's ability to withstand the propagation of cracks.
The primary bottom head of a generator is a forged dome and forms the lower part of the steam generator, the regulator said. "These components are essential for safety," ASN said in June, noting that they contribute to the containment of water from the primary circuit.
France's cumulative nuclear output in the first eight months of this year was down 15 TWh year-on-year at 260 TWh, RTE data showed.
