UPDATE 1-Goldman Sachs to start trading Japan power futures - sources

(Adds power futures trading volume in paragraphs 6-7)

TOKYO, June 7 (Reuters) - Goldman Sachs Group plans to establish a desk in Tokyo to start trading Japanese power derivatives, two people familiar with the matter told Reuters on Wednesday.

More foreign energy companies and banks are seeking access to the Japanese power market, which was launched in 2016 in the wake of the Fukushima nuclear disaster in 2011, spurring trade activity by generators, consumers and distributors.

Interest in trading rose amid growing liquidity in Japan's power futures markets as the volatility of electricity prices surged following Russia's invasion of Ukraine. The power crisis heightened the need for hedging among power suppliers and buyers, according to the sources.

Goldman Sachs has hired some traders in Tokyo, the sources said, requesting anonymity as the matter is still confidential.

A spokesperson for Goldman Sachs declined to comment.

Japanese power futures trading volume by the European Energy Exchange (EEX) rose nearly four-fold in January-April over the same period last year to 6.3 terawatt hours (TWh), according to the EEX.

The EEX, a unit of Deutsche Boerse, launched the clearing service for Japanese power futures in May 2020 and trading volume has been steadily growing. (Reporting by Yuka Obayashi; Editing by Sherry Jacob-Phillips and Jacqueline Wong)