Power: Feb 17-21: Liberal supply forces markets to plumb lower depth
Wholesale electricity markets in Japan were pulled down by excess supply in the week to February 21. Downward pressures on the markets strengthened as electricity usage remained weak in the warm winter, meanwhile supply from photovoltaics (PV) and thermal power stations was sufficient.
Based on the Rim Power Index (Day ahead 24 hours), the weekday power prices in the eastern market, including the Hokkaido, Tohoku and Tokyo area, averaged out at 7.41 yen per kilowatt hour (kWh), down 0.56 yen/kWh or 7.0 % from the previous week, meanwhile prices in the western, made up of the Chubu, Hokuriku, Kansai, Chugoku, Shikoku and Kyushu area, at 6.26 yen/kWh, down 0.51 yen/kWh, or 7.5%.
The price difference between Hokkaido and Tokyo stood at 1.20 yen/kWh compared to the prior week's 1.22 yen/kWh, with Hokkaido's average 8.48 yen/kWh (previous week's ave: 9.09 yen) and Tokyo's 7.28 yen/kWh (7.87 yen), which are calculated from data compiled by the Japan Electric Power Exchange (JEPX). Hokkaido prices often move at higher levels than other areas and Tokyo area is the largest market in Japan. Kansai's weekly average softened by 0.50 yen/kWh to 6.34 yen/kWh, and Kyushu's fell by 0.50 yen/kWh to 5.95 yen/kWh. Kansai area is the biggest market in the western Japan, and Kyushu's prices are apt to move at lower levels in comparison with other areas. The gap between Kansai and Kyusyu stood at 0.39 yen/kWh equaling to the previous week. Markets' soft tone resulted from stagnant demand and ample supply from PV. In addition, major sellers were apparently forced to provide more electricity from thermal power centers to reduce excess fuel inventory that was created by the warm winter.
On JEPX, the weekday average of System Price (Day ahead 24 hours), which are computed based on the data of 9 areas, moved lower by 0.48 yen/kWh or 6.6 % to 6.81 yen/kWh, with the average volume increasing by 5,680 MWh to 913,307 MWh from the prior week.
Rim Power Report (English Language Version) click |