In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices on a weekly average basis for Jun 20-24 delivery strengthened from the previous week in both East Japan and West Japan. The rainy season delivered cloudy days across Japan for most of the week. The temperatures also rose day by day, and volumes of bids continued to outstrip offers in the JEPX auction. Besides that, the LNG market in Northeast Asia extended gains, marking the Yen 37 level per mmBtu in the latter half of the week. Such a spike in fuel prices pushed up spot power prices further.

The actual highest price during the week was at Yen 45.00 in all of nine areas and the System Price (SP) for Jun 24 delivery. The actual lowest price during the week was at Yen 0.01 in Hokkaido and Tohoku for Jun 20 and Jun 21 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 21.29 in Hokkaido, up 3.23 from the previous week, Yen 21.23 in Tohoku, up 3.79, Yen 23.79 in Tokyo, up Yen 4.08, Yen 20.63 in Chubu, up Yen 2.92, Yen 20.45 in Hokuriku and Kansai, up Yen 3.18, Yen 19.23 in Chugoku and Shikoku, up Yen 1.98, Yen 19.21 in Kyushu, up Yen 2.31.

In the JEPX auction, volumes of offers were 945.90 mil kWh on a weekly average basis, down 2.3% from the previous week, while bids jumped by 9.1% to 1,032.86 mil kWh. The weekly average of trade volumes increased by 2.5% from the previous week to 840.90 mil kWh.

Power demand in nine areas of Japan during Jun 20-24 was a combined 12,463.72 mil kWh, up 12.3% from 11,101.86 mil kWh during Jun 13-17. The figure was up 6.5% from the corresponding period a year earlier. Demand during Jun 21-25 after day of week adjustment was 11,698.12 mil kWh.

In the JEPX forward market during Jun 20-24, three transactions were reported, or one deal on Jun 20 and another two deals on Jun 21. All of those deals materialized in Tokyo on a weekly delivery basis for Jun 25-Jul 1. On Jun 20, the 24-hour contract changed hands in 1MW at Yen 20.50. On Jun 21, the 24-hour contract was traded in 1MW at Yen 21.30 while the day time contract (08:00-18:00 hours on weekdays) fetched Yen 23.00 in 3MW.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Jun 20-24 were as below.

Deals reported on EEX (European Energy Exchange) during Jun 20-24 were as below.

In the last week of June, heat waves are expected to intensify in a wide range of areas, with the highest temperature forecast to rise near 35 degrees from Kyushu to Kanto. With many thermal units currently off line for regular maintenance, a further pickup in air-conditioning demand is likely to push up spot prices further. Meanwhile, the weather is forecast to remain sunny from Kyushu and southern Tohoku. With such weather conditions, the rainy season may come to an end shortly, and the mid-summer peak demand season could kick off.