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The Japan Times
Japan’s power prices climb to highest since 2023 on heat wave
Japanese power prices have climbed significantly, marking the highest rates seen in over three years as demand spikes from a heat wave. The nationwide next-day power price has increased by 20%, now standing at ￥25.18 per kilowatt-hour. Contributing to this surge are soaring liquefied natural gas prices, more than double pre-conflict levels in the Middle East, amid supply disruptions following regional tensions, particularly in Iran. This has serious implications for Japan's energy stability and costs.
MonitorConfidence: HighShort term horizonGeopolitical risk: High
Published 24 Aug 2026, 07:45 UTC1 min read
Visit original article ↗Lead image — The Japan Times
Summary
TL;DR
- Power prices in Japan rise to ￥25.18 per kilowatt-hour.
- Increase of 20% from the previous week—highest since January 2023.
- Heat wave warning issued by the Japan Meteorological Agency.
- Temperatures expected to peak at 37°C in Nagasaki and 35°C in Tokyo.
- LNG spot prices have surged due to Middle Eastern supply disruptions.
Interesting facts
- Japan's largest power source is heavily influenced by liquefied natural gas prices.
- The Strait of Hormuz is crucial for global LNG shipments, affecting prices worldwide.