The integrated Japanese power trading activities are expected to leverage JERA Global Markets’ comprehensive trading platform, governance and risk management frameworks.
The integration, effective from 1 April 2025, will merge the Japanese power trading businesses of JERA and EDF Trading, aligning them with JERA Global Markets’ global trading and optimisation operations.
JERA Global Markets, a joint venture in which JERA holds a 66.6% stake and EDF Trading 33.3%, serves as the exclusive fuels’ optimiser for both shareholders.
JERA chief optimisation officer and chairman JERA Global Markets Kazunori Kasai stated: “We have entered a new chapter of this enduring and collaborative relationship with EDF Trading which commenced with coal and LNG [liquefied natural gas] trading.
“This collaboration is a major step forward into the field of optimisation, which is one of the three operational capabilities of JERA’s 2035 growth strategy. Power trading is strategically aligned with the global trade of fuels, and we are confident the synergies of these businesses will contribute to the revitalisation of the domestic power market in Japan.”
The expansion strengthens the cooperation established in 2008 between JERA, a leading utility in Japan, and EDF Trading, known for its expertise in European and North American power markets.
The integrated Japanese power trading activities are expected to leverage JERA Global Markets’ comprehensive trading platform, governance and risk management frameworks.
EDF Trading CEO Béatrice Bigois stated: “As a global multi-commodity utility-backed trader, with 25 years’ experience in optimising assets in the European and US power and gas markets, we are very pleased to expand our partnership with JERA to include Japanese power trading.
“We very much look forward to combining our complementary strengths to support JERA’s strategic ambitions in Japan.”
Operations will be based in the Coredo Nihonbashi building in Tokyo, supported by a team of 50 experienced professionals.
JERA Global Markets CEO Justin Rowland stated: “As a leading asset-backed trader with an active presence in global energy markets, Japanese power trading presents opportunities for greater optimisation and flexibility across the energy value chain.
“With the majority of our traded fuels being delivered into Japan, this market is important to us. We are committed to promoting greater liquidity in the Japanese power market, further supporting market efficiencies.”
In a related development, JERA and bp have agreed to merge their offshore wind operations into a joint venture named JERA Nex bp, with a potential net generating capacity of 13GW.
This 50:50 joint venture will combine the offshore wind assets and expertise of both companies, aiming to become a leading global offshore wind developer, owner and operator.
