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It is a beautiful Saturday afternoon, so obviously I'm spending my time dissecting data from the recent power crunch in Japan
This is what I found:
While nationwide demand spiked in Jan. due to the cold blast, the region worst hit was likely the southern island of Kyushu
This is what I found:
While nationwide demand spiked in Jan. due to the cold blast, the region worst hit was likely the southern island of Kyushu
A sudden spike in power demand + snowy weather is particularly bad for Kyushu because their grid has a larger ratio of solar than other regions
When it is cloudy or snow covers solar panels, that curbs the amount of power to the grid
When it is cloudy or snow covers solar panels, that curbs the amount of power to the grid
Kyushu Electric needed to boost output from thermal power plants. But there was a problem: gas inventories were quickly falling and the spot LNG market was tight
This resulted in Kyushu purchasing one of the most expensive LNG spot cargoes of all time https://www.bloomberg.com/news/articles/2021-01-08/asia-s-big-freeze-sends-lng-prices-into-the-stratosphere?sref=DLVyDcXJ
This resulted in Kyushu purchasing one of the most expensive LNG spot cargoes of all time https://www.bloomberg.com/news/articles/2021-01-08/asia-s-big-freeze-sends-lng-prices-into-the-stratosphere?sref=DLVyDcXJ
The situation got so dire that Kyushu bought the remainder of LNG left at the bottom of tankers after they discharged
Tankers typically leave “heel” LNG in tanks after discharging cargoes to keep them at the super-cold temperatures https://www.reuters.com/article/japan-electricity-prices-idUSL1N2JO0LX
Tankers typically leave “heel” LNG in tanks after discharging cargoes to keep them at the super-cold temperatures https://www.reuters.com/article/japan-electricity-prices-idUSL1N2JO0LX
Kyushu Electric requested urgent power supplies from rival utilities 24 times between Jan. 8-13, right around the time when wholesale power prices were jumping to a record high
(To be fair, Kansai Electric requested power 27 times during the same period)
(To be fair, Kansai Electric requested power 27 times during the same period)
While the situation has since calmed down and the power crunch has subsided, Kyushu Electric was forced to pull is full-year profit forecast yesterday https://twitter.com/SStapczynski/status/1355042367955369984?s=20
That all being said, Kyushu Electric avoided blackouts or any other major supply disruptions to its customers. They made a few requests for customers to conserve power, but so did all the utilities
The system and rules implemented after the Fukushima meltdowns worked
The system and rules implemented after the Fukushima meltdowns worked
