Japan spot electricity price rises 3% for July 30 after soaring 24% on robust power demand

Spot prices traded on the Japan Electric Power Exchange rose further for July 30, with the 24-hour day-ahead price rising 2.8% to Yen 17.24/kWh on the day after jumping 23.8% to Yen 16.77/kWh for July 29, as power demand soared because of heatwaves hitting the country.

Tokyo's integrated reserve power supply capacity ratio dropped to 5.97% during 30 minutes to 11 am local time July 29 (0200 GMT), when the Tokyo area's reserve power supply capacity ratio was 5.57%, according to the Organization for Cross-Regional Coordination of Transmission Operators.

TEPCO Power Grid expects Tokyo's integrated reserve power supply will see demand peak at severe levels for an hour from 1 pm to 2 pm local time July 29, with facility utilization having reached 94% of the usage from 10:30 am to 11:00 am on the day.

TEPCO Power Grid said its July 29 supply outlook included over-power supply beyond capacity from thermal power plants under contracts to use reserve capacities to ensure stable electricity supply.

In response to a directive from TEPCO Power Grid for over-power supply, JERA boosted its electricity supply by 298.9 MW as of 1:30 pm local time at the No. 6 Hirono coal-fired unit, No. 1 and No. 2 Hitachinaka coal-fired units, Shin No. 2 and No. 3 Anegasaki gas-fired units, No. 1 and No. 2 Yokosuka coal-fired units, No. 2 Sodegaura gas-fired unit, No. 2 and No. 4 Futtsu combined cycle gas-fired units and No. 2 Higashi Ohgishima gas-fired unit.

In a separate statement, the OCCTO -- comprising all power companies in Japan -- requested member companies to boost their power supply until 9:30 pm local time July 29, as the integrated reserve power supply ratio is expected to hover below 5% due to increased demand from high temperatures, marking the first similar request since July 8.

The reserve power supply capacity ratios are squeezed as Tokyo is forecast to experience 38 degrees Celsius July 29, according to the Japan Meteorological Agency.

All other regions are forecast to experience temperatures above 30 C on July 29, with Osaka and Kagoshima at 37 C, Fukuoka 36 C and Sendai 33 C, according to the JMA.

Tokyo's integrated reserve power supply capacity ratio is slated to drop(opens in a new tab) to as low as 1% over July 29-Aug. 2 as power demand rises on higher temperatures, but the area's ratio would be about 5.4% using extra capacity, Japan's Organization for Cross-Regional Coordination of Transmission Operators said July 26.

The Tokyo area's integrated reserve power supply capacity ratio is expected to drop to 1% for Aug. 1 and 1.8% for Aug. 2, but the area's ratio could recover to 5.4% for Aug. 1 and 5.9% for Aug 2, considering additional capacity to be restarted, the OCCTO said.

Facility glitches

In filings to the Hatsuden Joho Kokai System, Tohoku Electric said it shut the 295 MW No. 4-4 gas-fired unit at the Higashi Niigata thermal power plant at 10 am local time July 29 as a result of malfunctioning at unnamed facilities. That also cut output at the 295 MW No. 4-2 Higashi Niigata gas-fired unit by 147.5 MW from 10 am July 29 as a result of works at the No.4-4 unit. Tohoku Electric plans to restart the No. 4-4 unit July 31 when it plans to resume normal output at the No. 4-2 Higashi Niigata gas-fired unit on the same day.

Hirono IGCC Power said in an HJKS filing that it cut output from the sole 543 MW coal-fired unit at its Hirono IGCC power plant by 270 MW late July 27 as a result of a glitch at a facility cooling unit, with no date for normalizing operations.

Hirono IGCC Power is 40% owned by Hirono IGCC Management, an affiliate of Mitsubishi Energy Solutions, which is a wholly owned subsidiary of Mitsubishi, 40% by Mitsubishi Heavy Industries, 10% by Mitsubishi Electric and 10% by Tokyo Electric Power Co. Holdings.

In a separate HJKS filing, JERA said it will shut 450 MW No. 3 gas-fired unit at the Minami Yokohama thermal power plant from 4pm local time July 29 until July 31 as a result of issues at a boiler-related facility.

Kansai Electric restarted July 28 the 486.5 MW No. 1 gas-fired unit at the Himeji Daini power plant after an unplanned outage because of a glitch at a power generator July 15.

Japan's LNG stocks held by major power utilities continued to increase, rising 6.8% week on week to 2.35 million mt(opens in a new tab) July 21, the Ministry of Economy, Trade and Industry said July 24.