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Weekly Summary

Power: Apr 5-9: Prices strengthen on thermal unit shutdowns

In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices for Apr 5-9 delivery gained ground from the previous week in both East Japan and West Japan. The market was bolstered by lower spare generation capacity. A series of thermal units in both East Japan and West Japan entered long-term planned suspensions starting Apr 1 while some other thermal units were also sent out of service for regular maintenance. The market also found support from a return of chilly winter climate in Hokkaido with some snowfalls in the latter half of the week. But the temperatures were relatively comfortable throughout the week. In West Japan, the weather was sunny in many days of the week. In Kyushu, output controls on renewable energy were exercised day after day. Spot prices in Kyushu sank to Yen 0.01 in many windows during day time for most of the week. Meanwhile, the Frequency Converter (FC) with an expanded capacity of 2,100MW came in full-fledged operation starting evening on Mar 31, helping almost erase price divergence during night time between East Japan and West Japan. But ample solar power supply often caused the East-West price divergence during day time.

 

The actual highest price during the week was at Yen 10.59 in all of nine areas and the system price for Apr 9 delivery. The actual lowest price during the week was at Yen 0.01 throughout the week, or during day time for Apr 5-9 delivery in Kyushu, Apr 7 and Apr 8 delivery in five areas from Chubu to Shikoku, and Apr 6-9 delivery in the system price.

 

By area, the weekly average of the 24-hour spot prices was at Yen 6.52 in Hokkaido, up Yen 1.37 from the previous week, Yen 6.56 in Tohoku, up Yen 1.41, Yen 6.61 in Tokyo, up Yen 1.12, Yen 6.19 in Chubu and Hokuriku, up Yen 1.18, Yen 6.20 in Kansai, up Yen 1.19, Yen 6.18 in Chugoku and Shikoku, up Yen 1.17, and Yen 4.86 in Kyushu, up Yen 0.28.

 

Power demand in nine areas of Japan during Apr 5-9 was a combined 11,313.68 mil kWh, up 4.6% from 10,812.09 mil kWh during Mar 29-Apr 2. The figure was down 0.2% from the corresponding period a year earlier. Demand during Apr 6-10, 2020 after day of week adjustment was 11,333.64 mil kWh.

 

In the JEPX forward market, no deals were reported during Apr 5-9.

 

Deals reported on TOCOM (Tokyo Commodity Exchange) during Apr 5-9 were as below.

 

Deals reported on EEX (European Energy Exchange) during Apr 5-9 were as below:

 

 

During the week starting Apr 12, most days are expected to be cloudy. The weather is forecast to be sunny across Japan on Apr 12 after the weekend, but turn gloomy with rain clouds on Apr 13. There will be little scope of sunshine on Apr 14, either. Sunshine is expected to return on Apr 15, but clouds will loom again through Apr 16. Solar power supply is likely to decrease from the previous week ending Apr 5, a factor that will bolster day time prices.

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