The European Energy Exchange (EEX) celebrates the sixth anniversary of the launch of its Japanese power derivatives market, marking the occasion by surpassing 100 TWh in year-to-date traded volume.
Over the past six years, the total volume traded on this market amounted to over 354 TWh, with significant growth driven by continuous engagement with the local Japanese trading community, EEX's global client base and a continuous expansion of the Japan power product portfolio.
Key milestones include the gradual extension to multiple Japanese market areas, the successful introduction of options, daily and fiscal year futures contracts, and the ongoing improvements to the order book trading facility, including a planned extension of order book trading to cover the full Japanese power trading day , which is planned to be implemented before the end of this year.
Steffen Koehler, Chief Commercial Officer of EEX, comments: "The Japanese power derivatives market continues to demonstrate remarkable growth, with dynamically expanding volumes and an increasingly active community, now in its seventh year. We are proud to have built such a strong market together with domestic and international market participants, clearing members, brokers and technology partners as well as local regulators, and we look forward to continuing this journey together.”
Today, EEX offers an extensive product portfolio for the Japanese power derivatives market, including base and peak futures from daily contracts to up to six fiscal years in advance for the Tokyo, Kansai and Chubu market areas as well as monthly options. This broad range of products reflects EEX's commitment to meeting the diverse hedging and trading needs of both local and international market participants.
With an annual electricity consumption of more than 900 TWh, the Japanese power market is the fourth largest in the world and hedging and trading demand is forecasted to grow substantially in the coming years.
To mark the anniversary, EEX hosted over 700 industry experts at a joint event with Eurasia Group in Tokyo, bringing together local and international stakeholders to discuss the future of Japan's power market.
The European Energy Exchange (EEX) is a leading energy exchange which builds secure, successful and sustainable commodity markets worldwide – together with its customers and partners. As part of EEX Group, it serves international power, natural gas, environmental, freight and agricultural markets, and provides data, reporting and registry services. EEX is an enabler of the energy transition and decarbonisation, advancing renewables integration through dedicated products and services, including those related to guarantees of origin.
