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Weekly Summary

Power: Aug 31- Sep 4: Gap grows b/w cooldown east, blazing west

Japan electricity markets of wholesale showed disproportional moves between east and west in the week to September 4. Based on the Rim Power Index (Day ahead 24 hours), weekday power prices in the eastern market, including Hokkaido, Tohoku and Tokyo area, averaged out at 9.92 yen per kilowatt hour (kWh), down 0.44 yen/kWh or 4.2 % from the previous week, meanwhile prices in the western, made up of the Chubu, Hokuriku, Kansai, Chugoku, Shikoku and Kyushu area, at 15.21 yen/kWh, up 2.96 yen/kWh or 24.2%.

 

Temperatures especially in the first half of the week continued to be a main driving force for markets: in the east market, Tokyo's daily high temperatures ware projected on a day ahead basis at 34 Celsius degrees for August 31, 30C for Sep 1, 31C for Sep, Sendai's 28C, 27C, 28, Sapporo's 23C, 25C, 26C, whereas, in the west market, Osaka's 37C, 36C, 36C, Nagoya's 38C, 36C, 35C, Fukuoka's 35C, 37C and 35C. Electricity demand for cooling were easy to decrease in east, to rise in west.

 

The premium of Hokkaido to Tokyo shrank dramatically to 1.22 yen/kWh from 7.90 yen/kWh recorded in the prior week, with Hokkaido's 24 hours average 11.07 yen/kWh (previous week's ave:17.70 yen) and Tokyo's 9.85 yen/kWh (9.80 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. Forecast maximum temperatures in Sapporo, Hokkaido's major city, plummeted to the range of 23C to 29C for the week from the previous range of 27C to 33C. Tokyo's daily average prices dived for Sep 1 and 2 delivery, but recorded at 11 to 13 yen/kWh levels for other three days.

Kansai's weekly average extended gains, appreciating by 3.22 yen/kWh to 15.59 yen/kWh, and Kyushu's climbing up by 1.69 yen/kWh to 13.58 yen/kWh. The difference of the two areas widened to 2.01 yen/kWh from 0.48 yen/kWh seen in the prior week. Kansai area is the biggest market in the western Japan, and Kyushu's prices are incline to move at less expensive levels alongside of other areas. Kansai's average prices for peak time showed materially big gains than daytime and night time.

 

On JEPX, the weekday average of System Price (Day ahead 24 hours), which were figured based on the data of 9 areas, ticked up, recording 10.28 yen/kWh compared to 10.77 yen/kWh seen in the prior week, with the average volume falling by 48,524 megawatts per hour (MWh) to 982,423 MWh.

 

JEPX: System Price (Day Ahead 24 hour)

Weekday Price

31-Aug

1-Sep

2-Sep

3-Sep

4-Sep

 

Average

24-Hour Ave

12.02

9.88

9.17

13.04

12.30

 

11.28

Volume (MWh)

1,033,427

982,364

970,507

999,101

926,718

 

982,423

(unit: yen per kWh) (date: delivery day)  

 

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Tokyo : Electricity Team  M.Totsuka   +81-3-3552-2411Copyright © RIM Intelligence Co. ALL RIGHTS RESERVED.