Japan electricity prices in wholesale markets shoot up in the week to August 21, propelled by the combination of record heat wave and technical factor. 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 11 .88 yen per kilowatt hour (kWh), up 5.99 yen/kWh or 101.7 % from the previous week, meanwhile prices in the western, made up of the Chubu, Hokuriku, Kansai, Chugoku, Shikoku and Kyushu area, at 10.95 yen/kWh, down 6.46 yen/kWh or 143.9%.

The week's demand surge was by scorching heat; daily high temperatures for Tokyo were expected on a day ahead basis at the range of 32 to 35 degrees Celsius, including three 35C days, in East Japan, and highs for Osaka, west Japan's largest city, at the range of 36 to 38C, including three 37C days. This hot wave ballooned electricity demand for cooling. A technical factor, high rate of procurement in market, fueled the fire. Buyers preferred buying electricity in the markets to securing in an over-the counter-trade, because they believed market prices move at lower levels than OTC prices due to dull economy influenced by new coronavirus. Over-35C-temperatures appeared to develop the side effect of the low rate.

The premium of Hokkaido to Tokyo grew to plus 0.60 yen/kWh from minus 0.10 yen/kWh recorded in the prior week, with Hokkaido's 24 hours average 12.57 yen/kWh (previous week's ave:6.75 yen) and Tokyo's 11.97 yen/kWh (6.05 yen), which are reckoned in conformity to data compiled by the Japan Electric Power Exchange (JEPX). Hokkaido prices often drift at higher levels than other areas especially in the winter season. Tohoku's average stood at 11.28 yen/kWh, 0.69 yen/kWh lower than Tokyo. Nighttime averages for Tokyo showed a much-smaller rise unlike daytime and peak time.

Kansai's weekly average zoomed by 6.61 yen/kWh to 11.21 yen/kWh, and Kyushu's jumped by 5.78 yen/kWh to 10.19 yen/kWh. The gap of the two areas widened to 0.93 yen/kWh from 0.10 yen/kWh seen 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. Kansai and Kyushu's average prices for night time were also rather modest gain.

On JEPX, the weekday average of System Price (Day ahead 24 hours), which were figured based on the data of 9 areas, edged down by 5.63 yen/kWh or 111.7% to 10.67 from the previous week's 5.04 yen/kWh, with the average volume ballooning by 95,787 megawatts per hour (MWh) to 1,056,643 MWh compared to the previous week.

Rim Power Report (English Language Version) click

＊RIM Power Report: Sample (English Language Version - Available!) click