Japan electricity prices in wholesale markets extended gains in the week ended August 7 on stronger demand for cooling under hot weather. Based on the Rim Power Index (Day ahead 24 hours), the weekday power prices in the eastern market, including Hokkaido, Tohoku and Tokyo area, averaged out at 6 .19 yen per kilowatt hour (kWh), up 0.78 yen/kWh or 14.4 % from the previous week, meanwhile prices in the western, made up of the Chubu, Hokuriku, Kansai, Chugoku, Shikoku and Kyushu area, at 4.82 yen/kWh, up 0.10 yen/kWh or 2.1%. East Japan markets were terrorized by sudden stoppages of a few thermal power plants, experiencing a hefty unit of 30.57 yen/kWh for Aug 7 delivery (1uit = 30 minutes).

Although east markets moved on a soft tone from Aug 3 to 6 due to decent supply from photovoltaic (PV) power stations backed up by sunny skies, a non-major electricity company's gas-fired plant with 600 megawatts (MW) output and a major affiliated gas-fired station with 150 MW in east Japan suspended suddenly in the early morning of Aug 6, causing a sharp gain in some units. Some market participants cited Tokyo's maximum temperatures and high rates of procurement in the markets as factors of the jump. Tokyo's max temperatures for Aug 7 were projected on a day ahead basis at 34 degrees Celsius, the weekly high. The electricity procurement rates were seemed to reach a high level since buyers have been able to purchases low-cost electricity in the spot markets since market prices have stayed at low levels created by flagging economy activities impacted by the new coronavirus. West markets with ample load capacity were immune to east's unexpected event.

The premium of Hokkaido to Tokyo grew to 0.20 yen/kWh from 0.08 seen in the prior week, with Hokkaido's 24 hours average 6.38 yen/kWh (previous week's ave:5.48 yen) and Tokyo's 6.18 yen/kWh (5.40 yen), which are reckoned in conformity to data compiled by the JEPX. Hokkaido prices often drift at higher levels than other areas especially in the winter season. Tohoku's average stood at 6.16 yen/kWh, 0.02 yen/kWh lower than Tokyo. Nighttime averages for Tokyo, Tohoku and Hokkaido were soft a touch unlike daytime and peak time.

Kansai's weekly average gained by 0.12 yen/kWh to 4.84 yen/kWh, and Kyushu's declined by 0.06 yen/kWh to 4.66 yen/kWh. The gap of the two areas recorded 0.18 yen/kWh compared to prior week's zero. Kansai area is the biggest market in the western Japan, and Kyushu's prices are apt to hover at less expensive levels alongside of other areas. In Kyushu area, blue skies appeared to gear up PV plants, and add downward pressures on prices for daytime.

On JEPX, the weekday average of System Price (Day ahead 24 hours), which were figured based on the data of 9 areas, gained by 0.22 yen/kWh or 4.4% to 5.18 from the previous week's 4.96 yen/kWh, with the average volume increasing by 47,808 megawatts per hour (MWh) to 994,478 MWh compared to the previous week.

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