In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices for Jun 28-Jul 2 delivery gained ground from the previous week in both East Japan and West Japan. The price gains were driven by a further decrease in solar power supply from a week before as the weather was mostly rainy in a wide range of areas throughout the week. The peak-demand summer season finally kicked off, but the temperatures remained below 30 degrees all during the week. Buying interest failed to pick up to meet air-conditioning demand, providing limited support to spot prices.

Kansai EPC resumed power delivery from the 836MW No3 pressurized water reactor (PWR) at its Mihama nuclear power station in Fukui prefecture on Jun 29. The reactor was restarted on Jun 23. Kansai EPC plans to send the reactor under commercial operation in late July.

The actual highest price during the week was at Yen 11.02 in West Japan for Jul 2 delivery. The actual lowest price during the week was at Yen 5.67 in eight areas from Tohoku to Kyushu for Jun 28 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 7.81 in Hokkaido, up Yen 0.26 from the previous week, Yen 7.54 in Tohoku and Tokyo, up Yen 0.32, Yen 7.90 in Chubu, up Yen 0.38, Yen 7.89 in Hokuriku and Kansai, up Yen 0.37, Yen 7.89 in Chugoku and Shikoku, up Yen 0.39, and Yen 7.80 in Kyushu, up Yen 0.60.

Power demand in nine areas of Japan during Jun 28-Jul 2 was a combined 11,943.70 mil kWh, up 2.1% from 11,698.12 mil kWh during Jun 21-25. The figure was up 3.4% from the corresponding period a year earlier. Demand during Jun 29-Jul 3, 2020 after day of week adjustment was 11,552.14 mil kWh.

In the JEPX forward market, two transactions were reported on Jun 28, followed by six deals on Jun 30, four deals on Jul 1 and five deals on Jul 2.

On Jun 28, the day-time contract (delivery during 08:00-18:00 hours on weekdays) in Tokyo changed hands on a weekly delivery basis. For Aug 7-13 and Aug 21-27 delivery, 1MW each fetched Yen 17.68 and Yen 18.07, respectively. The same items were traded at the same prices on Jun 25.

On Jun 30, the day-time contract witnessed six deals on a weekly delivery basis. In Kansai, 5MW was transacted at Yen 15.06 for Jul 24-30. The other five deals were clinched in Tokyo, including 5MW at Yen 16.20 for Jul 24-30, 1MW at Yen 18.00 for Jul 31-Aug 6, 1MW at Yen 17.68 for Aug 7-13, 1MW at Yen 17.65 for Aug 14-20 and 1MW at Yen 18.07 for Aug 21-27.

On Jul 1, the day-time contract in Tokyo witnessed four deals on a weekly delivery basis, including 1MW each at Yen 18.00 for Jul 31-Aug 6, Yen 17.68 for Aug 7-13, Yen 17.65 for Aug 14-20 and Yen 18.07 for Aug 21-27.

On Jul 2, the day-time contract saw five transactions. In Kansai, 2MW changed hands at Yen 13.47 on a monthly delivery basis for February 2022. The other four deals were wrapped up in Tokyo on a weekly delivery basis, including 1MW each at Yen 18.10 for Jul 31-Aug 6, Yen 17.68 for Aug 7-13, Yen 17.65 for Aug 14-20 and Yen 18.07 for Aug 21-27.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Jun 28-Jul 2 were as below.

Deals reported on EEX (European Energy Exchange) during Jun 28-Jul 2 were as below.

During the week starting Jul 5, the weather is forecast to be cloudy for most of the week, leaving little scope for solar power generation. In West Japan, the temperatures are forecast to exceed 30 degrees day after day, and a possible pickup in air-conditioning demand is likely to lift spot prices. Power supply is expected to grow, with more thermal units coming back from maintenance shutdowns together with a restart of the Mihama No3 reactor as mentioned above. But increased supply is unlikely to give downside pressure on spot prices, as rising fuel prices and brisk demand will have a greater impact. As the peak demand summer season kicked off, a key will be when the rainy season will be over.