In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices for Jul 26-30 delivery continued to post a reverse East-West spread in favor of the West. Severe heat wave gave a further boost to spot buying, pushing up volumes of bids for Jul 29 delivery to record-breaking 1,378.67 mil kWh. Trade volumes also expanded to a historical high of 1,105.92 mil kWh for Jul 30 delivery. But such a pickup in buying interest was not enough to cause any price spike. Ample offers seemed to have capped upside potential in spot prices. In Kansai, the highest temperature reached near 35 degrees in many areas, but increased output from nuclear reactors apparently put a lid on spot prices. Kansai EPC began commercial operation at the 826MW No3 pressurized water reactor (PWR) at its Mihama nuclear power station on Jul 27, followed by a start of commercial operation at the 1,180MW No3 PWR at its Ohi nuclear power station on Jul 30. Both nuclear power stations are located in Fukui prefecture.

The actual highest price during the week was at Yen 17.01 in West Japan for Jul 30 delivery. The actual lowest price during the week was at Yen 6.25 in all of nine areas and the system price for Jul 26 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 8.96 in three areas in East Japan including Hokkaido, Tohoku and Tokyo, Yen 9.24 in five areas in West Japan including Chubu, Hokuriku, Kansai, Chugoku and Shikoku, and Yen 8.40 in Kyushu.

Power demand in nine areas of Japan during Jul 26-30 was a combined 13,955.07 mil kWh, up 0.9% from 13,836.02 mil kWh during Jul 19-23. The figure was up 11.9% from the corresponding period a year earlier. Demand during Jul 27-31, 2020 after day of week adjustment was 12,474.40 mil kWh.

In the JEPX forward market, Kansai witnessed a combined eight transactions on Jul 28 for the day time contract (delivery during 08:00-18:00 hours on weekdays) on a weekly delivery basis. All of eight deals materialized at Yen 18.00, or four deals including 5MW, 2MW, 10MW and 2MW for Aug 14-20 delivery and four deals including 5MW, 2MW, 10MW and 2MW for Aug 21-27 delivery.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Jul 26-30 were as below.

Deals reported on EEX (European Energy Exchange) during Jul 26-30 were as below.

The first week of August will be gripped by looming concerns over a possible price spike. Trade levels in the forward market and futures market continued to rise from July. Trade participants in the spot market are expected to revise up their price ideas. But the Electricity and Gas Market Surveillance Commission (EGC) showed readiness to conduct an investigation if spot prices go beyond Yen 30. Some players believe the EGC threat will cap upside room in spot prices.