Heat wave hampers recovery of Japan's industrial energy use

Crude oil processing in Japan rose 3.6% on year to 3.16 million barrels per day in the first 29 days in June, according to the Petroleum Association of Japan. Crude oil processing in the nation was below the previous year's level during March and May period. June figures may suggest recovery of industrial energy consumption.

Electricity supply by Tokyo Electric Power Company also rose 0.7% on year in June. It was the first year-on-year increase in this year. However, high electricity demand seemed to be affected by warm temperature. Average temperatures in June in northern and eastern Japan were 0.9 degrees celcius higher than normal year, while June average in western Japan was 0.7 degrees higher than normal year, according to the Japan Meteorological Agency.

12 regions in Japan recorded the historical highest temperatures during June. The monthly highest electricity demand in the TEPCO's service area was 1.3% larger than a year ago.
Heat wave is lifting electricity demand further in July. TEPCO's power supply rose 1.6% on year in the first six days in this month.

Utilization rates of power generation facilities in western Japan's Kansai Electric Power Company reached to 96% on 13th June. The company could not supply enough electricity three times in June if it did not operate two nuclear power units.

Electricity demand has already exceeded KEPCO's supply capacity excluding nuclear units twice in July. Power demand in the KEPCO's service area exceeded non-nuclear supply capacity only once in the summer season of 2012, but the event has already counted five times in the early stage of this summer.

Power companies forecasted that they would have enough supply capacity in this summer. However, severe heat wave is likely to generate more electricity demand than expected, and industrial users might be forced to cut consumption further.
A lack of electricity supply capacity continues to hamper recovery of industrial energy demand in Japan.

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