3min chapter

Energy Unplugged by Aurora cover image

EP.146 The Japanese Power Market with Aurora's Leadership Team in Tokyo

Energy Unplugged by Aurora

CHAPTER

The Dynamics of the Capacity Market

In the next 10 years, our central scenario expects the capacity market to be continued to be cleared at the operating cost of gas or picking plants. Kyu Shou and Hokkaido are two regions that sitting at the edge of the grid typically require additional capacity procurement for energy security. And they actually see 50% higher capacity market price than the main regions historically. So these markets are expected to remain tight and volatile in the 2020s. But equally means more opportunities for technology such as batteries to pick up potentially higher capacity market payment.

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