Tokyo — October 21, 2025 — The European Energy Exchange (EEX) and the Tokyo Commodity Exchange (TOCOM) jointly hosted the “Japan Power Summit 2025” in central Tokyo, bringing together more than 700 participants from the domestic and international energy and exchange sectors at Otemachi Sankei Plaza. The event, first co-organized in 2023 with around 300 attendees and expanded to 550 in 2024, saw further growth this year as the venue reached full capacity.

Japan’s electricity futures market has been rapidly developing since TOCOM launched trading in September 2019 and EEX began offering Japan-focused power futures in May 2020. EEX, a major energy exchange under the Deutsche Börse Group, continues to widen its footprint in the Japanese market.

During the summit, participants from energy firms, financial institutions and policymakers engaged in lively discussions on the future of Japan’s power derivatives market and its institutional design. Trading volume on the EEX platform for Japan-linked futures reached 102.52 TWh between January and September 2023 — double the volume from the same period a year earlier. TOCOM also recorded a sharp rise to approximately 3.96 TWh during the same period, nearly a seven-fold increase.

Market participation has been expanding, driven not only by domestic utilities and suppliers but also by overseas traders and financial players. “If financial instruments for risk hedging can be further incorporated into the physically-based market, participation will certainly grow,” said Bob Takai, CEO of EEX’s Japan unit, emphasizing the importance of international participation to improve liquidity.

EEX is set to introduce fiscal-year based futures contracts starting April 2025 and plans to launch new products for the Chubu region in December. TOCOM is also considering offering futures linked with Japan Electric Power Exchange (JEPX), aiming to broaden regional product coverage by spring 2026.

Analysts point to significant upside potential. According to Henning Groyssteiner of Eurasia Group, Japan could become one of the world’s largest electricity futures markets, on par with Europe, if trading volume reaches the scale of the nation’s power consumption—approximately 2,500 TWh—by 2030.

Structural changes in Japan’s domestic power market are expected to further accelerate the shift toward market-based procurement and hedging. As long-term supply contracts held by major generator JERA expire, retail electricity providers are increasingly exposed to market volatility and are seeking futures as a key risk-management tool.

However, several uncertainties remain, including details of upcoming institutional frameworks such as new trading markets and the second phase of emissions trading, raising concerns about how these policies will interact with the futures market.

All eyes are now on reforms targeting retail electricity suppliers. The Ministry of Economy, Trade and Industry (METI) has proposed requiring providers to secure 50–70% of their supply capacity several years in advance by fiscal 2030. Industry observers say such measures could significantly boost the supply-hedging market.

With attendance growing sharply each year, organizers may soon need to seek a larger venue to accommodate the expanding interest in Japan’s evolving power derivatives landscape.

（Futures Tribune・issued October 28, 2025 ・no.3393）