Japanese government proposals aimed at stabilizing electricity supplies run the risk of impacting liquidity in one of the world’s fastest-growing power markets, according to traders and officials attending a series of industry events this week.
Under a mandate proposed earlier in the year and still under discussion, power retailers would be required to secure about half of their expected demand three years prior and 70% within a year of sale. That may impact liquidity in the spot market, with such a large proportion of supply tied up in advance, Hiromi Moro, general manager at Engie Energy Marketing Japan KK, said during Bloomberg’s Japan Power Seminar in Tokyo on Wednesday.