Japanese Power Derivatives Trading Volumes Expected to Double in 2025

EEX expects Japanese power derivatives trading volumes to double in 2025. Chubu Electric Power Co Inc is a Japan-based company primarily engaged in energy businesses, including electricity and gas supply, overseas energy, construction, and manufacturing. The company operates in three segments: Mirise, Power Grid, and JERA, which focuses on fuel procurement, power generation, and sales of electricity and gas. EEX also operates in renewable energy, business creation, global business, nuclear power, and administrative overhead.

The European Energy Exchange (EEX) has forecasted a significant increase in trading volumes for Japanese power derivatives in 2025, projecting a doubling from the current levels. This expansion is set to be bolstered by the introduction of fiscal year-based annual Japan power futures, scheduled to launch on October 14, 2025 [1].

The new products will cover Tokyo and Kansai base- and peak-load power, aligning with the Japanese fiscal year, which runs from April 1 to March 31 of the following year. The contracts will be tradable for the next six full fiscal years, complementing EEX's existing calendar year-based annual futures and shorter-duration products [1].

EEX has been rapidly gaining traction in the Japanese power futures market since May 2020, when it began offering similar contracts. By July 2025, over 10TWh were traded on EEX, compared to over 600GWh on the Tokyo Commodity Exchange (TOCOM) [1].

Chubu Electric Power Co., Inc. (CHUEF), a prominent Japan-based energy company, is likely to be significantly impacted by this growth. The company operates in three primary segments: Miraiz, Power Grid, and JERA. Miraiz focuses on energy services centered around gas and power, while Power Grid provides power network services. JERA handles fuel procurement, power generation, and sales of electricity and gas. With a strong presence in the energy sector, Chubu Electric Power is well-positioned to benefit from the anticipated surge in trading volumes [2].

The launch of fiscal year-based futures is expected to address the need for risk hedging in line with the local financial year, providing a more comprehensive tool for market participants to manage their exposure [1]. This development could potentially open up new opportunities for Chubu Electric Power and other energy companies in Japan.

As the market continues to evolve, investors and financial professionals should closely monitor the developments in Japanese power derivatives trading. The anticipated growth in volumes, driven by EEX's new product offerings, may present both opportunities and challenges for companies like Chubu Electric Power. Staying informed about regulatory changes and market trends will be crucial for navigating this dynamic landscape.

References:
[1] https://japanenergyhub.com/news/eex-fiscal-year-japan-power-futures/
[2] https://finance.yahoo.com/quote/9502.T/