Czech Republic continues net power exports to Germany

Market: Electricity
15/08/23

The Czech Republic has remained a net power exporter to Germany so far in August for the fifth consecutive month, as German wind and coal-fired generation have fallen steadily, while Czech nuclear output has increased to a five-month high.

Net power exports from the Czech Republic to Germany averaged around 800MW over 1-15 August — a fresh high for this year — with net exports from April-July ranging from 29MW to 179MW (see net export chart).

The rise in Czech net power exports to Germany owes in large part to increased power flows during mostly off-peak hours — 20:00-08:00 — as wind power generation in Germany is usually lower over this period, with Czech-German power flows switching in peak-load hours (see hourly export chart).

Net exports from the Czech Republic to Germany from 1 April-15 August during off-peak periods have averaged 478MW, with exports from Germany to the Czech Republic during peak hours over the same period averaging 362MW.

Offshore and onshore wind output in Germany has fallen sharply from the high so far this year of 23.37GW in January, declining to as low as 8.56GW in June, although output picked up in July and August at an average of around 13.5GW. And solar power generation has dropped steadily, averaging 8.63GW in August compared with 10.23GW in July and 12.26GW in June.

Lower coal-fired generation from lignite and anthracite in Germany owing to unfavourable operating margins has limited base-load generation in the country, with output falling to a low so far this year of just 7GW this month, declining from 8.22GW in July and 10GW in June.

In comparison, steady base-load generation from strong nuclear output in the Czech Republic has kept exports to Germany steady. Czech nuclear generation so far in August has averaged 3.46GW, up from 3.06GW in July and the highest since March.

But day-ahead power prices in Germany have remained at a discount to the Czech Republic, averaging €87.10/MWh from 1 April-16 August, while Czech power prices averaged €91.28/MWh over the same period.

Germany could switch back to being a net exporter to the Czech Republic next month as the Czech September contract closed at a €2.70/MWh premium to the German equivalent on 14 August, while wind power output in Germany typically increases in September from August.

By Makani Joinville

Czech-German hourly border flows MW

Czech-German net power exports MW

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