Japan’s Electricity Prices Surge 25% as LNG and Coal Costs Soar
Japan’s average power prices jumped by over 25% at the start of this week from the previous week amid soaring LNG and higher coal prices. The nationwide power price rose by over 25% week-to-week to $0.19 (31.15 Japanese yen) per kilowatt-hour (kWh) on Monday, Bloomberg reported, citing data from Japan Electric Power Exchange. Japan, one of the world’s biggest LNG importers, this summer reduced…
Japan's electricity prices surged by over 25% at the start of the week, according to Bloomberg, citing data from Japan Electric Power Exchange. The nationwide power price increased to $0.19-31.15 Japanese yen per kilowatt-hour (kWh) on Monday. The country, a major importer of liquefied natural gas (LNG), had been relying more on coal for power generation since the war in the Middle East began.
This shift is driven by higher LNG and coal prices. Japan's gas-fueled power generation is now the costliest in years, while coal prices have also increased due to reduced supply from Indonesia. The global benchmark for coal prices, the Newcastle futures, jumped by 30% compared to pre-war levels. Power prices in Japan have also risen due to scheduled maintenance at some power-generating facilities before winter.
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