Date 18/05/2022
Today marks the second anniversary of EEX’s product launch for the Japanese Power Derivatives market. Since launch in May 2020, EEX’s Japan Power product suite, which includes power futures for the regions Tokyo and Kansai, is now firmly established as the benchmark contract in Japanese power trading, backed by the continuous support from the local trading community and international market participants.
Since launch on 18 May 2020, a total of 8.8 TWh was traded in EEX Japanese Power Futures until end of April with EEX holding a market share of 87% in cleared power derivatives volume in its first full year of trading (2021). In the first months of 2022, EEX confirmed this leading position: While the monthy-average-volume amounted to 280 GWh in the first year (May’20 – Apr’21), the monthly-average-volume increased to 455 GWh in the second year (May’21 – Apr’22).
Steffen Koehler, COO of EEX, comments on the second EEX Japan anniversary: “While the first year was all about building the market together with our clients, we’ve now entered a phase of sustainable growth. It’s very encouraging to see that more and more players from the Japanese utility sector increasingly use our products which clearly benefits market liquidity in this still young market. This success is due to the efforts of all partners and stakeholders involved who work with us on the common goal of establishing a well-functioning market, supporting market participants to mititate and hedge their risk for Japanese power. I would like to thank all our partners and clients – EEX is looking forward to the next level of market development together with you.”
Today, 40 companies from Japan and around the world are actively trading the EEX Japan Power Futures contracts which is double the number of participants compared to May 2021. In particular, the number of domestic utility players increased significantly, with major Japanese players, such as JERA, Marubeni Power or Hokkaido Electric joining the EEX market in spring 2022. This significant increase in active participants and the large diversification of trading companies (domestic vs international, physical vs. financial, generation vs. retail) are the foundation for further growth of the EEX Japanese Power Futures in the months and years ahead.
Japan is the first Asian market area on the EEX Power Derivatives platform which comprises 20 market areas in Europe. With its trading venues for power, EPEX SPOT for short-term contracts, EEX for derivatives trading in Europe and Japan and Nodal Exchange for US power derivatives, EEX Group is the number one exchange group in power trading worldwide with 7,406 TWh traded in 2021.
The European Energy Exchange (EEX) is the leading energy exchange which builds secure, successful and sustainable commodity markets worldwide – together with its customers. As part of EEX Group, a group of companies serving international commodity markets, it offers contracts on Power, Natural Gas and Emission Allowances as well as Freight and Agricultural Products. EEX also provides registry services as well as auctions for Guarantees of Origin, on behalf of the French State. More information: www.eex.com
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