Research Paper

Managing Electricity Price Volatility Risk and the Importance of Electricity Futures - Risk Realization in Cases of Spot Price Surges -

Author	Kenichi Onishi
Summary	Japan’s electricity market has undergone significant liberalization since the 2000s through a series of institutional reforms, and the full liberalization of the retail electricity market in 2016 marked a major expansion of the ...
Outline	Japan’s electricity market has seen a significant expansion in competition due to ongoing liberalization, with the JEPX spot market playing a central role in price formation based on supply and demand and in ensuring transaction transparency. While institutional developments have supported market growth, repeated price spikes—caused by factors such as cold waves, LNG shortages, earthquakes, and unfavorable weather—have exposed the business risks faced by retail electricity providers. In addition, growing uncertainty in fuel markets is further increasing volatility. Under these conditions, the importance of utilizing electricity futures for risk hedging and enhancing business stability is rising even further.
Keyword	Spot market、Wholesale electricity market、Price volatility risk、Electricity futures、Futures trading、Volatility
Media	ＨＰ (4/20/2026)
Report PDF	https://test-eneken.mvmt.jp/data/13200.pdf