In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices for Nov 8-12 delivery rose further from the previous week in both East Japan and West Japan. The weather was mostly bad throughout the week, and a tightness in solar power supply lifted day time prices. Meanwhile, night time prices also rallied on the back of active buying. Meanwhile, price divergence was alleviated across Japan. For Nov 10 delivery, the Tokyo-Chubu divergence occurred only in two windows while the Chugoku-Kyushu divergence disappeared. West Japan so far outperformed East Japan, but lower frequency in the divergence helped boost East Japan's rally and correct extreme lows in Kyushu. The Frequency Convertor (FC) connecting Tokyo and Chubu currently has reduced operating capacity of 1,650MW due to maintenance works. The FC capacity will return to normal rates at 2,100MW when the maintenance is completed in the evening on Nov 15.

The actual highest price during the week was at Yen 50.00 in East Japan and the system price for Nov 12 delivery. The actual lowest price during the week was at Yen 7.45 in Hokkaido for Nov 12 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 15.83 in Hokkaido, up Yen 0.71 from the previous week, Yen 17.70 in Tohoku and Tokyo, up Yen 2.27, Yen 19.46 in Chubu and Hokuriku, up Yen 0.47, Yen 19.54 in Kansai, Chugoku and Shikoku, up Yen 0.73, and Yen 17.17 in Kyushu, up Yen 4.89.

Power demand in nine areas of Japan during Nov 8-12 was a combined 11,457.25 mil kWh, up 4.6% from 10,950.33 mil kWh during Nov 1-5. The figure was down 3.1% from the corresponding period a year earlier. Demand during Nov 9-13, 2020 after day of week adjustment was 11,817.77 mil kWh.

In the JEPX forward market, no transactions were reported during Nov 8-12.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Nov 8-12 were as below.

Deals reported on EEX (European Energy Exchange) during Nov 8-12 were as below.

In the third week of November, a cold wave is expected to grip Hokkaido, but the temperatures in other areas will remain relatively mild. The highest temperature is forecast to be around 20 degrees for most of the week from Kyushu to Kanto, a factor that will continue to curb power demand. Meanwhile, the weather is widely forecast to be sunny through the middle of the week, but rain clouds are expected to loom in the latter half of the week. With such weather conditions, day time prices are likely to turn higher from the first half to the second half of the week. The weekly average price will be flat or slightly higher than the second week of November.