By Tsvetana Paraskova of OilPrice.com
Japan’s nationwide day-ahead electricity price soared by 20% in one week to settle on Monday at the highest level since January 2023, as gas supply disruptions from the Middle East and an intense heatwave pushed up prices and consumption.
The day-ahead power price in Japan has jumped to $0.16 (25.18 Japanese yen) per kilowatt-hour (kWh) on Monday, per data from the Japan Electric Power Exchange cited by Bloomberg.
The heatwave in Japan is set to intensify later this week, with temperatures peaking on Wednesday, according to weather forecasts.
While the heatwave is boosting consumption, the oil and gas supply disruption in the Middle East has raised Japan’s fuel costs as LNG prices have doubled from before the Iran war began and Qatar’s LNG supply was trapped behind the Strait of Hormuz.
Japan, one of the world’s biggest LNG importers, earlier this summer reduced gas-fired generation in favor of coal as the price of liquefied natural gas remained elevated.
Japan has been burning more coal and less gas for power generation since the war in the Middle East started, and it is not the only one. All Asian countries have READ MORE AT SOURCE »
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