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Weekly Summary

Power: Aug 16-20: Post-holiday prices fall further amid low temperatures

In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices for Aug 16-20 delivery in both East Japan and West Japan weakened from the previous week. The temperatures remained relatively low after the Obon holiday. A slowdown in power demand created an overhang in power supply, putting a lid on spot prices. Volumes of offers expanded to record-breaking 1,316.58 mil kWh for Aug 18 delivery.


The actual highest price during the week was at Yen 10.27 in four areas from Hokkaido to Chubu for Aug 19 and Aug 20 delivery. The actual lowest price during the week was at Yen 1.09 in five areas from Hokuriku to Kyushu for Aug 17 delivery.


By area, the weekly average of the 24-hour spot prices was at Yen 7.58 in Hokkaido, down Yen 1.16 from the previous week, Yen 7.75 in Tohoku, down Yen 1.12, Yen 7.76 in Tokyo, down Yen 1.16, Yen 7.75 in Chubu, down Yen 1.18, Yen 7.13 in four areas including Hokuriku, Kansai, Chugoku and Shikoku, down Yen 1.61, and Yen 7.03 in Kyushu, down Yen 1.39.


Power demand in nine areas of Japan during Aug 16-20 was a combined 12,127.86 mil kWh, up 5.2% from 11,531.19 mil kWh during Aug 9-13. The figure was down 19.5% from the corresponding period a year earlier. Demand during Aug 17-21, 2020 after day of week adjustment was 15,061.12 mil kWh.


In the JEPX forward market, four deals were reported on Aug 18, followed by two deals on Aug 20. On Aug 18, the 24-hour contract in Tokyo witnessed four transactions in 10MW each on a weekly delivery basis, including Yen 11.00 for Aug 21-27, Yen 11.00 for Aug 28-Sep 3, Yen 10.50 for Sep 4-10 and Yen 10.00 for Sep 11-17. On Aug 20, the day time contract (delivery during 08:00-18:00 hours on weekdays) in Tokyo changed hands on a weekly delivery basis, with 1MW and 9MW fetching Yen 13.50 for Aug 28-Sep 3 delivery.


Deals reported on TOCOM (Tokyo Commodity Exchange) during Aug 16-20 were as below.


Deals reported on EEX (European Energy Exchange) during Aug 16-20 were as below.


In the week starting Aug 23, spot prices will still have limited upside potential. In West Japan, the weather is forecast to be cloudy through the middle of the week. The highest temperature will be capped at slightly above 30 degrees, a factor that is likely to curb air-conditioning demand. But the weather is forecast to turn sunny in the latter half of the week. The highest temperature will also rise to 35 degrees in Osaka on Au 26. An expected pickup in air-conditioning demand will likely push up spot prices. In East Japan, the weather in Kanto is forecast to be partly sunny throughout the week, but Hokkaido and Tohoku will be gripped by looming clouds. The highest temperature in Kanto is forecast to reach near the extremely hot day indicator of 35 degrees in the latter half of the week like West Japan, a factor that may give a boost to the price rise.


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