On 5 July 2019, Genscape signed a partnership agreement with Mitsubishi Research Institute (MRI) for our real-time PowerRT products in Japan, marking an important step to provide transparency into the region’s power trading market. Genscape ramped up activity in the country since its power market fully liberalized in 2016.
Japan is one of the world’s largest power markets, following China, the U.S., and India. Genscape recognized the potential there for many years, and due to our extensive research and expertise, we are in a leading position to provide our clients with the necessary tools to achieve success and gain profits in this large and tradable market.
Long-term power contracts are the historical standard in Japan. However, Figure 2 shows spot market trading on the Japan Electric Power Exchange (JEPX) increased dramatically since the market liberalized in April 2016. With this increase in more short-term trading, real-time data provided by the Genscape PowerRT product provides the tools to make successful trades. We expect increased demand for power trading related products with the introduction of indirect auctions for interconnector capacity introduced in 2018. Near term plans for the European Energy Exchange (EEX) to provide Over the Counter (OTC) derivatives clearing as well as the Tokyo Commodities Exchange (TOCOM) futures derivatives market will also further the demand for power trading solutions.
MRI also provides research and solutions for the wholesale Japanese power market, in particular an electricity price forward curve through its MRI Power price index (MPX) service. This forward curve is simulated by using theoretical values. By partnering with Genscape, MRI can use real time data from our PowerRT service to more accurately create this forward curve. MRI will also add PowerRT to their own product suite later this year, while also handling sales and marketing services to sell the PowerRT platform as a standalone product in Japan.
MRI is Japan's leading integrated think tank founded in 1970. Since then, they work to resolve customer's advanced and complex issues, from proposal to implementation of solutions. In addition to their activities with Genscape in the power sector, MRI work in fields that include medicine, nursing, welfare, regional revitalization, the environment and energy, disaster prevention and safety, space science and advanced technology and big data.