Japan spot electricity price soars as western power plants restrict gas, coal use on Typhoon Shanshan

Day-ahead spot prices traded on the Japan Electric Power Exchange soared to the highest so far this summer Aug. 29 as gas and coal-fired power plants in the western part of the country plan to shut or cut output with the approach of Typhoon Shanshan.

The spot price for Aug. 30 rose 17.8% to Yen 19.30/kWh from Yen 16.38/kWh for Aug. 29, led by higher contracted prices for Kansai, Chugoku, Shikoku and Kyushu areas in western Japan, where the power plants are scheduled to be affected by Typhoon Shanshan.

The 6th regional Japan Coast Guard headquarters on Aug. 28 imposed an evacuation advisory for large ships, including LNG carriers, in the western part of the Seto Naikai inland sea as the typhoon approaches.

The coast guard imposed the evacuation advisory for the western Seto Naikai area at 5 am local time Aug. 28, 24 hours ahead of the storm entering the affected area, with maximum sustained wind speeds projected at 40 meters/second.

Typhoon Shanshan, which was downgraded to strong category from very strong earlier, was moving north from Amakusa city in Kumamoto prefecture at a speed of 15 km/hour, with a central pressure of 965 hPA and maximum sustained wind speed near its center of 40 m/s, according to the Japan Meteorological Agency's outlook, issued at 11:45 am local time (0245 GMT) Aug. 29.

Plant impact

Kansai Electric plans to cut output by 332 MW each at the No. 1, the No. 2, the No. 3, the No. 4 gas, the No. 5 and the No. 6 gas-fired units, with a capacity 486.5 MW each, at the Himeji Daini power plant from midnight local time Aug. 30 until Sept. 4 due to fuel restrictions related to the typhoon, the company said in filings to the Hatsuden Joho Kokai System.

Kansai Electric also plans to reduce output by 332 MW each at the 729 MW No. 5 and the 713 MW No. 6 gas-fired units at the Himeji Daiichi power plant until Sept. 4 due to fuel restrictions related to the typhoon, the company said in HJKS filings.

In separate HJKS filings, Electric Power Development Co., or J-POWER, plans to cut output by 600 MW at the No. 1 coal-fired unit as well as by 700 MW at the No. 2 coal-fired unit at the Matsuura thermal power plant from Aug. 30 until Aug. 31 due to the typhoon.

J-POWER started cutting output by 260 MW each at the No. 1 and No. 2 coal-fired units with a 500 MW capacity each at the Matsushima thermal power plant, the company said in HJKS filings.

Kyushu Electric also said in HJKS filings that it plans to trim output from Aug. 30 by 262.5 MW at the 700 MW No. 1 coal-fired unit at the Matsuura power plant, while it plans to reduce output by 425 MW at the 1 GW No. 2 coal-fired unit due to the typhoon.

Kobelco Power Kobe also started cutting output by 460 MW at the No. 2 coal-fired unit at the Kobe power plant from midnight Aug. 29 for the day, and the company plans to reduce output by 460 MW at the No. 1 coal-fired unit at the same plant from 10 pm Aug. 29 until Sept. 2, the company said in HJKS filings.

Kobelco Power Kobe plans to shut the 700 MW No. 2 coal-fired unit until Sept. 3, with the 650 MW No. 3 and the 650 MW No. 4 coal-fired units having shut at the Kobe plant Aug. 30 until Sept. 2, the company said in HJKS filings.

A Kobelco Power Kobe source said the company was cutting output and shutting down its Kobe coal-fired units due to delays in arrivals of coal carriers because of the approach of Typhoon Shanshan.

Shikoku Electric shut the 296-MW No. 1 and 289-MW No. 2 gas-fired units at its Sakaide power plant in western Japan Aug. 27 due to fuel restrictions, it said in a HJKS filing, as the company expected a delay in receiving an LNG cargo due to the approaching typhoon.

A spokesperson at Shikoku Electric attributed the company's fuel restrictions at the Sakaide-1 and -2 units Aug. 27 to a delay in receiving an LNG cargo because of the typhoon, but said power supply was unlikely to be affected.