In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices for delivery in a post-holiday week of Jan 3-7 gained further ground in both East Japan and West Japan. Especially for Jan 6 delivery, the outlook for harsh chilly climate pushed up spot prices steeply across Japan, lifting spot prices to the intraday high of Yen 80.00 in several evening windows in four areas from Hokkaido to Chubu. On Jan 6, Tokyo was expected to suffer a crunch in power supply amid a cold wave with heavy snowfalls widespread in the area, and TEPCO received power supply in a maximum of 1,220MW from outside of Tokyo.

The actual highest price during the week was at Yen 80.00 in Hokkaido, Tohoku, Tokyo and Chubu for Jan 6 delivery. The actual lowest price during the week was at Yen 0.01 in nine areas and the system price for Jan 3 delivery, and Kyushu for Jan 4 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 22.96 in Hokkaido, Yen 22.95 in Tohoku and Tokyo, Yen 22.84 in Chubu, Yen 21.98 in Hokuriku, Kansai and Chugoku, Yen 21.97 in Shikoku, and Yen 16.28 in Kyushu.

Power demand in nine areas of Japan during Jan 3-7 was a combined 13,718.22 mil kWh, up 4.8% from 13,094.72 mil kWh during Dec 27-31. The figure was down 5.2% from the corresponding period a year earlier. Demand during Jan 4-8, 2021 after day of week adjustment was 14,470.18 mil kWh.

In the JEPX forward market, no deals were reported during Jan 3-7.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Jan 3-7 were as below.

Deals reported on EEX (European Energy Exchange) during Jan 3-7 were as below.

In the week starting Jan 10, spot prices will likely maintain strength. Chilly winter climate is expected to grip the whole Japan throughput the week, while rain clouds will loom across the country on Jan 11 after the three-day weekend. Snowfalls are expected in a wide range of areas alongside the Sea of Japan, Tohoku and Hokkaido. The highest temperature in other areas is forecast to be around 10 degrees. On Jan 12, the weather is forecast to turn partly sunny from Kyushu to Kanto, but chilly winter climate will persist with the highest temperature expected below 10 degrees. With such bullish factors, spot prices are highly likely to stay in the current high range mainly in evening hours, with a chance of rising above Yen 50 in several windows.