Japan Power Prices Hit Zero as Coronavirus Hammers Industries

Electricity prices in Japan are hitting the lowest possible, effectively zero, with increasing regularity as the coronavirus pandemic slows industrial activity and renewable energy supplies such as solar increase as summer approaches.
Day-ahead prices on the Japan Electric Power Exchange (JEPX) touched a low of 0.01 yen ($0.0001) per kilowatt hour (kWh) for the first time in February but since the government declared a state of emergency in April they have traded at that level for several hours on an increasing number of days during normal business hours, Reuters reported.
The coronavirus pandemic has killed nearly 300,000 people globally while governments have put billions of people under lockdown, which has devastated economies as factories idle and services stop.
Japan has seen relatively fewer deaths and infections than other major economies, but the economy is expected to have fallen into recession in the first quarter and an even deeper slump in the current quarter as steelmakers, automakers and other manufacturers halt activity due to collapsing demand.
“The impact on electricity demand in the industrial and commercial sector and especially in the commercial segment will be apparent for sure this year,” Takashi Morimoto, president of Kansai Electric Power Inc, told an earnings conference on Tuesday, referring the financial year that started on April 1.