Power: Jun 7-11: West outperforms East amid weather, unit shutdown
In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices for Jun 7-11 delivery weakened in East Japan, but strengthened in West Japan. Spot prices in East Japan were capped by ample solar power supply while a return of more thermal units from maintenance shutdowns also served as a bearish factor. In West Japan, solar power supply was ample as well, but spot prices were bolstered by a suspension of the mega LNG-fired unit on Jun 8, at a time when the highest temperature exceeded 30 degrees in many areas.
The actual highest price during the week was at Yen 16.55 in five areas from Hokuriku to Kyushu for Jun 11 delivery. The actual lowest price during the week was at Yen 0.01 for Jun 7-8 delivery in Chugoku, Shikoku and Kyushu, and Jun 9 delivery in Kyushu.
By area, the weekly average of the 24-hour spot prices was at Yen 6.72 in Hokkaido, down Yen 0.51 from the previous week, Yen 6.92 in Tohoku, down Yen 0.29, Yen 7.06 in Tokyo, down Yen 0.19, Yen 7.94 in Chubu, up Yen 0.33, Yen 8.01 in Hokuriku and Kansai, up Yen 0.37, Yen 7.42 in Chugoku, down Yen 0.22, Yen 7.42 in Shikoku, down Yen 0.35, and Yen 7.24 in Kyushu, up Yen 0.45.
Power demand in nine areas of Japan during Jun 7-11 was a combined 11,747.97 mil kWh, up 5.4% from 11,147.85 mil kWh during May 31-Jun 4. The figure was up 4.5% from the corresponding period a year earlier. Demand during Jun 8-12, 2020 after day of week adjustment was 11,575.55 mil kWh.
In the JEPX forward market, three transactions were reported on Jun 10. In Kansai, the day time contract (delivery during 08:00-18:00 hours on weekdays) changed hands in 2MW at Yen 13.26 for a monthly delivery in September. In Tokyo, day time contract was traded in 1MW each at Yen 15.20 for Jul 17-23 and Yen 16.20 for Jul 24-30. The volumes were small, but the trade levels were relatively high.
Deals reported on TOCOM (Tokyo Commodity Exchange) during Jun 7-11 were as below.
Deals reported on EEX (European Energy Exchange) during Jun 7-11 were as below.
During the week starting Jun 14, rain clouds are expected to grip a wider range of areas. Sunny intervals may be sometimes witnessed, but the weather is forecast to be mostly rainy across Japan with limited scope for solar power generation. Meanwhile, the temperatures are expected to cool down from the previous week and demand is likely to come to a lull. With such weather conditions, spot prices led by day time are believed to move into a bit higher territory than the previous week.