Power: Oct 11-15: Prices extend gains on tighter solar supply
In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices for Oct 11-15 delivery stretched rises from the previous week in both East Japan and West Japan. For Oct 11 delivery, offers were almost fully met by bids during 16:00-17:00 hours in eight areas from Hokkaido to Shikoku, pushing up spot prices to the intraday high of Yen 50.00. For Oct 12 delivery, spot prices moved into higher territory amid tighter solar power supply, hitting the Yen 20-40 levels during midday hours in seven areas from Tohoku to Shikoku. Later in the week, recovering weather and lower temperatures hammered down spot prices, but some evening windows still witnessed the Yen 20 and Yen 30 levels.
The actual highest price during the week was at Yen 50.01 in the system price for Oct 11 delivery. The actual lowest price during the week was at Yen 0.01 in Kyushu for Oct 15 delivery.
By area, the weekly average of the 24-hour spot prices was at Yen 11.47 in Hokkaido, down Yen 8.27 from the previous week, Yen 12.98 in Tohoku and Tokyo, up Yen 1.45, Yen 16.21 in Chubu, up Yen 4.11, Yen 16.21 in Hokuriku, up Yen 4.15, Yen 16.16 in Kansai, Chugoku and Shikoku, up Yen 4.11, and Yen 10.49 in Kyushu, up Yen 3.31. In Hokkaido, spot prices calmed down in the week started Oct 11 as the 600MW No2 unit at the Tomato Atsuma coal-fired power station resumed operation on Oct 8 following a planned suspension since Oct 2.
Power demand in nine areas of Japan during Oct 11-15 was a combined 11,521.25 mil kWh, down 2.2% from 11,783.36 mil kWh during Oct 4-8. The figure was up 5.8% from the corresponding period a year earlier. Demand during Oct 12-16, 2020 after day of week adjustment was 10,892.90 mil kWh.
In the JEPX forward market, no transactions were reported.
Deals reported on TOCOM (Tokyo Commodity Exchange) during Oct 11-15 were as below.
Deals reported on EEX (European Energy Exchange) during Oct 11-15 were as below.
In the week starting Oct 18, the temperatures are forecast to drop across Japan. In West Japan, the highest temperature will be capped around 20 degrees for most of the week, compared with around 30 degrees in the past weeks. Spot prices in West Japan continued to hit the Yen 20 level in evening so far, and the key will be whether or not lower temperatures will hammer down evening prices. In East Japan, the highest temperature is forecast to remain below 20 degrees, a factor that is likely to cool down power demand further. But Hokkaido is expected to see the day's high sharply down around 10 degrees. The lowest temperature will be around 5 degrees, a level that is low enough to ignite heating demand. Growing demand is likely to push up spot prices in Hokkaido again. On the whole, spot prices are believed to have limited downside room amid ongoing high fuel costs. The market will remain challenging for retail players with a higher reliance on spot purchases.