In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices for Aug 23-27 delivery gained ground from the previous week in both East Japan and West Japan. A return of summer heat spurred air-conditioning demand, helping lift spot prices. Especially on Aug 26 and Aug 27, extremely hot weather gripped a wide range of areas from Kyushu to southern Tohoku. Spot prices leaped to the intraday high of Yen 50.00 in East Japan and Yen 22.13 from Chubu to Shikoku for Aug 27 delivery, and Yen 20.01 from Hokkaido to Shikoku for Aug 28 delivery.

The actual highest price during the week was at Yen 50.00 in East Japan for Aug 27 delivery. The actual lowest price during the week was at Yen 2.00 in Kyushu for Aug 23 delivery. The price of Yen 50.00 was a season high this summer and marked for a second time after Aug 5.

By area, the weekly average of the 24-hour spot prices was at Yen 9.33 in Hokkaido, up Yen 1.75 from the previous week, Yen 9.35 in Tohoku, up 1.60, Yen 9.37 in Tokyo, up Yen 1.61, Yen 8.87 in Chubu, up Yen 1.12, Yen 8.44 in four areas including Hokuriku, Kansai, Chugoku and Shikoku, up Yen 1.31, and Yen 7.71 in Kyushu, up Yen 0.68.

Power demand in nine areas of Japan during Aug 23-27 was a combined 14,013.87mil kWh, up 15.6% from 12,127.86 mil kWh during Aug 16-20. The figure was down 3.8% from the corresponding period a year earlier. Demand during Aug 24-28, 2020 after day of week adjustment was 14,567.12 mil kWh.

In the JEPX forward market, no transactions were reported during Aug 23-27.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Aug 23-27 were as below.

Deals reported on EEX (European Energy Exchange) during Aug 23-27 were as below.

In the week starting Aug 30, severe summer heat is likely to persist in several areas. In the first half of the week, the highest temperature is forecast to exceed 30 degrees in Kanto and further West. Tokai and Kinki are expected to see brisk air-conditioning demand, with the day's high expected to rise near the extremely hot day indicator of 35 degrees. The weather is forecast to be mostly sunny widely in Japan, but clouds will likely loom gradually as the days go by. Solar power supply is expected to shrink, but less sunlight will also alleviate feeling temperatures. Starting the beginning of September, an increasing number of thermal units will enter regular maintenance and stop operation in the medium term. There is a chance of sudden price spikes if summer heat in September lingers longer than expected.