In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices for Aug 30-Sep 3 delivery softened from the previous week in East Japan, but firmed up in West Japan. East Japan was pressured down by waning demand amid lower temperatures. The highest temperature in Tokyo dropped to 23 degrees on Sep 1 and Sep 2, a level that was normally seen in early October. The temperatures in West Japan also turned lower, but stayed above 30 degrees in many areas with stable air-conditioning demand. Besides that, the weather was bad throughout the week, leaving limited room for solar power generation. In addition, an increasing number of thermal units entered regular maintenance, a factor that bolstered spot prices in West Japan.

The actual highest price during the week was at Yen 22.08 in eight areas from Hokkaido to Shikoku for Aug 30 delivery and five areas from Chubu to Shikoku for Aug 31 delivery. The actual lowest price during the week was at Yen 4.93 in Hokkaido for Aug 31 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 8.57 in Hokkaido, down Yen 0.76 from the previous week, Yen 9.18 in Tohoku, down 0.17, Yen 9.22 in Tokyo, down Yen 0.15, Yen 9.56 in Chubu, up Yen 0.69, Yen 9.56 in four areas including Hokuriku, Kansai, Chugoku and Shikoku, up Yen 1.12, and Yen 8.41 in Kyushu, up Yen 0.70.

Power demand in nine areas of Japan during Aug 30-Sep 3 was a combined 12,941.10 mil kWh, down 7.7% from 14,013.88 mil kWh during Aug 23-27. The figure was down 8.4% from the corresponding period a year earlier. Demand during Aug 31-Sep 4, 2020 after day of week adjustment was 14,125.18 mil kWh.

In the JEPX forward market, no transactions were reported during Aug 30-Sep 3.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Aug 30-Sep 3 were as below.

Deals reported on EEX (European Energy Exchange) during Aug 30-Sep 3 were as below.

In the week starting Sep 6, the weather is forecast to be mostly cloudy across Japan, a factor that will leave limited scope for solar power generation. But with relatively comfortable temperatures, a slowdown in power demand is likely to put a lid on spot prices. But more and more thermal unit will be sent off line mainly for regular maintenance in the medium term, trimming reserve power supply. Besides that, the interconnection lines will often enter maintenance works between Hokkaido and Tohoku as well as in West Japan. In case of any troubles, spot prices could have a chance to post unexpected spikes.