Post: Japan Market: TEPCO warns of tight energy supplies

Japan Market: TEPCO warns of tight energy supplies

Japan’s Tokyo Electric Power Company Holdings Inc (TEPCO) has issued a warning of an electricity shortage on March 22, due to unseasonably cold temperatures, coupled with a decrease in solar power output caused by bad weather, and the continued shutdown of some power stations in East Japan in the wake of the strong earthquake that occurred on March 16.

According to TEPCO: “The situation of power supply and demand is becoming extremely severe […] in particular, the supply and demand of electricity is expected to become extremely severe” in the areas serviced by TEPCO.

In its electricity demand forecast for March 22, TEPCO noted 99% of power generation capacity was forecast to be used to meet peak demand in its service area. TEPCO, which supplies power to Tokyo and eight other prefectures including nearby Kanagawa, Chiba and Saitama, said it expects to receive electricity from other utilities, but has asked households and businesses to “co-operate in saving electricity by refraining from using lighting and other electrical equipment as long as it does not interfere with your daily life while continuing to use heating.”

Source: TEPCO, accessed at 17.33 (Tokyo), 22/3/2022

In response to the warning, day ahead power prices on the JEPX hit the ceiling of JPY 80 yen/kWh while imbalance prices edged up to JPY 120/kWh, which pushed up the currency exchange rate to JPY 120/USD).

Day ahead prices (22 March 2022)

Source: JEPX

The Ministry of Economy, Trade and Industry (METI) has indicated it could be the most severe electricity shortage since 2011, when TEPCO conducted a planned power outage following a powerful earthquake and tsunami and the incident at its Fukushima Daiichi nuclear power plant in March that year.

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