In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices for Aug 9-13 delivery in both East Japan and West Japan lost ground from the previous week. Waning demand took a toll on spot prices as more factories suspended operation for the Obon holiday, at a time when severe heat wave was alleviated in the latter half of the week. Volumes of offers expanded to record-breaking 1,311.72 mil kWh for Aug 12 delivery.

The actual highest price during the week was at Yen 19.90 in eight areas from Hokkaido to Shikoku for Aug 9 delivery. The actual lowest price during the week was at Yen 4.90 in Hokkaido for Aug 13 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 8.74 in Hokkaido, down Yen 3.33 from the previous week, Yen 8.87 in Tohoku, down Yen 3.68, Yen 8.92 in Tokyo, down Yen 3.33, Yen 8.93 in Chubu, down Yen 1.66, Yen 8.74 in four areas including Hokuriku, Kansai, Chugoku and Shikoku, down Yen 1.84, and Yen 8.42 in Kyushu, down Yen 1.39.

Power demand in nine areas of Japan during Aug 9-13 was a combined 11,531.19 mil kWh, down 22.4% from 14,866.17 mil kWh during Aug 2-6. The figure was down 10.5% from the corresponding period a year earlier. Demand during Aug 10-16, 2020 after day of week adjustment was 12,880.82 mil kWh.

In the JEPX forward market, the 24-hour contract changed hands in Tokyo on Aug 11. On a weekly delivery basis, 10MW fetched Yen 11.50 for Aug 21-27 delivery.

On TOCOM (Tokyo Commodity Exchange), no deals were reported during Aug 9-13.

Deals reported on EEX (European Energy Exchange) during Aug 9-13 were as below.

In the week starting Aug 16, spot prices are believed to rebound with a return of industrial demand, as most factories are scheduled to resume operation after the Obon holiday. But the highest temperature is widely forecast to stay below 30 degrees in the first half of the week and around 30 degrees from the middle of the week onward. Relatively mild temperatures are likely to cap any price hike. But a possibility cannot be ruled out that an unexpected rise in temperatures or unit troubles could suddenly push up spot prices sharply. Market players will need to stay alert for a possible price spike.