Power: Jun 29- Jul 3: Increased output capacity depresses markets
Electricity prices in Japan's wholesale markets remained soft int the week ended July 3 as producers appeared to be forced to improve gradually their generation capacity in accordance with an annual program despite the unexpected slow demand in the wake of new coronavirus infections. Based on the Rim Power Index (Day ahead 24 hours), the weekday power prices in the eastern market, including Hokkaido, Tohoku and Tokyo area, averaged out at 4.95 yen per kilowatt hour (kWh), down 0.69 yen/kWh or 12.2 % from the previous week, meanwhile prices in the western, made up of the Chubu, Hokuriku, Kansai, Chugoku, Shikoku and Kyushu area, at 4.55 yen/kWh, down 0.23 yen/kWh or 4.8%.
Available output capacity seemed to grow day by day as the summer rolls around, which means that some electric generating stations have returned after an inspection hiatus. Daily maximum temperatures for Tokyo, east Japan's largest city, were projected on a day ahead basis at the range of 26 to 29 degrees Celsius, averaging out at 27.0 C, up from the prior week's 25.8 C. Plus, Tokyo had bad weather in the week as with the previous week. Max temperatures for western largest city Osaka at 26 C to 30 C, averaging out at 28.2 C, down from the previous week's 30.8C, and Osaka's skies were also overcast in contrast to first three days in the previous week.
The premium of Hokkaido to Tokyo logged plus 0.36 yen/kWh compared with minus 0.12 yen/kWh observed in the previous week, with Hokkaido's 24 hours average 5.29 yen/kWh (previous week's ave:5.54 yen) and Tokyo's 4.93 yen/kWh (5.66 yen), which are reckoned in conformity to data compiled by the Japan Electric Power Exchange (JEPX). Hokkaido's biggest city Sapporo had worse weather, and solar power stations provided less electricity. Hokkaido prices often move at higher levels than other areas especially in the winter season. Tohoku's average dropped by 0.62 yen/kWh to 4.93 yen/kWh, equaling to Tokyo.
Kansai's weekly average declined by 0.25 yen/kWh to 4.57 yen/kWh, and Kyushu's fell by 0.16 yen/kWh to 4.44 yen/kWh. The differential of the two areas narrowed a touch to 0.13 yen/kWh from 0.22 yen/kWh observed in the prior week. Kansai area is the biggest market in the western Japan, and Kyushu's prices are apt to hover at less expensive levels alongside of other areas. The rainy season was back in western Japan, blanketing the region with thick grey clouds. Thus, photovoltaic power plants could not work effectively at all, and limited losses.
On JEPX, the weekday average of System Price (Day ahead 24 hours), which were figured based on the data of 9 areas, dropped by 0.53 yen/kWh or 10.2% to 4.66 from the previous week's 5.64 yen/kWh, with the average volume increasing by 56,421 megawatts per hour (MWh) to 931,924 MWh compared to the previous week.
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