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Japan power prices jump to a 3.5-year high on higher fuel costs
Nationwide day-ahead spot power hit $0.15 per kWh on Wednesday, after rising 24% so far this week amid heat wave forecasts and higher LNG costs.
Japan’s day-ahead spot electricity prices surged Wednesday to the highest level in three and a half years, driven by a mix of higher fuel costs, summer heat waves, and a weaker Japanese currency, according to OilPrice, citing Japan Electric Power Exchange data.
The nationwide day-ahead spot price rose to $0.15, or 24.78 yen, per kilowatt-hour on Wednesday, with the price up 24% so far this week and reaching the highest point since January 2023.
Weather forecasts call for temperatures above 40 C, or 104 F, in multiple Japanese prefectures on Wednesday, and heat waves are expected to continue into early August, adding further upward pressure on power prices.
OilPrice also linked the move to higher natural gas and LNG costs in northeast Asia, noting spot LNG delivery prices there climbed to a four-month high amid renewed Middle East hostilities and renewed disruptions affecting the Strait of Hormuz, which reduced Qatar LNG supply again.
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