Electricity Prices in Japan Surge by Nearly 20% Due to a Cold Spell

Electricity Prices in Japan Surge by Nearly 20% Due to a Cold Spell

Share:

Electricity prices in the Japanese market surged by 19.6% on November 19, reaching 15.31 yen per kilowatt-hour (kWh) compared to 12.80 yen/kWh the previous day. This increase reflects heightened demand, driven by a drop in temperatures, particularly noticeable in eastern and northern Japan.

The electricity market in Japan, organized around the Japan Electric Power Exchange (JEPX), recorded notable price hikes in several geographic zones, including Tohoku, Tokyo, Chubu, Hokuriku, and Kansai. Prices had not reached this level since October 18, when they peaked at 15.98 yen/kWh.

Energy Demand Influenced by Weather Conditions

According to the Japan Meteorological Agency (JMA), maximum temperatures in the Tokyo region dropped to 16°C on November 18, slightly below the 30-year average for this period. Forecasts indicate a continuation of this decline, with temperatures expected to drop to 13°C on November 19, 12°C on November 20, and 15°C on November 21. This drop is attributed to winter atmospheric pressure, which intensifies heating demand and, consequently, electricity usage.

The increased heating demand has also boosted the use of thermal fuels such as liquefied natural gas (LNG) and city gas. However, despite this rise in consumption, operators report that additional spot LNG shipments are not currently required.

Forecasts and LNG Stock Management

A representative from an energy company explained that most firms had already anticipated a harsh winter and adjusted their procurement strategies accordingly. “Current stock levels appear sufficient to meet anticipated demand, although the situation could evolve,” he added.

Japan’s Ministry of Economy, Trade, and Industry recently announced that LNG stocks held by major power utilities increased by 4.2% in the week of November 10, reaching 2.21 million metric tons. This marks the second consecutive weekly increase, ensuring some stability in the face of rising seasonal demand.

Limited Impact on the Spot LNG Market

Despite falling temperatures, market participants have reported no urgent need for additional spot LNG shipments. This reflects proactive supply management by Japan’s leading energy firms. Nevertheless, prolonged severe weather could test the limits of available reserves.

Japan’s peak electricity demand, often observed in winter, highlights the country’s continued reliance on fossil fuels for energy production, despite ongoing efforts to diversify energy sources and bolster grid resilience.

  • Populaires ​
Ignitis begins construction of three energy storage parks in Lithuania
Shell ships first LNG cargo from its LNG Canada facility
Dalinar Energy wins recommendation to acquire Citgo with $7.38bn bid
TotalEnergies acquires 1.5 GW of AES renewable assets in the Caribbean
Japan and Siemens Gamesa sign strategic offshore wind agreement
France anticipates significant slowdown in emission reductions starting in 2025
French greenhouse gas emissions are expected to rise by 0.2% in the first quarter of 2025, indicating a global slowdown in reductions forecast for the full year, according to Citepa, an independent organisation responsible for national monitoring.
U.S. Senate Approves Accelerated End to Renewable Energy Tax Credits
The Republican budget bill passed by the U.S. Senate accelerates the phase-out of tax credits for renewable energies, favoring fossil fuels and raising economic concerns among solar and wind industry professionals.
Brazil: renewable energy curtailment to jump by 300% by 2035
Rapid growth in solar and wind capacities will lead to a significant rise in electricity curtailment in Brazil, as existing transmission infrastructure remains inadequate to handle this massive influx of energy, according to a recent study by consulting firm Wood Mackenzie.
South Korea reduces its dependence on fossil fuels below 50%
In April 2025, fossil fuels represented 49.5% of South Korea's electricity mix, dropping below the symbolic threshold of 50% for the first time, primarily due to a historic decline in coal-generated electricity production.
US Senate adopts tax neutrality for advanced biofuels
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
Renewable energy: access improving, but financing still insufficient for Africa
According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
China and the United States improve their energy performance in an unstable global context
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
Algeria and Angola strengthen energy cooperation at US–Africa summit
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
UK urged to accelerate electricity price reforms
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
Brussels expands subsidies for low-carbon technologies and nuclear power
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan Faces Major Electricity Shortfall of 89 GW by 2050
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
EU Approves Targeted Energy Aid for Europe’s Heavy Industries
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius launches international tender for floating power plant
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Spain and Portugal Strengthen Networks Following April Blackout
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia Commits 190 Billion USD to Expand Energy Capacity by 2034
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
France: Moratorium on renewables; warning about immediate industrial impact
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.
New European Battery Regulation Disrupts Europe’s Industrial Sector
The European battery regulation, fully effective from August 18, significantly alters industrial requirements related to electric cars and bicycles, imposing strict rules on recycling, supply chains, and transparency for companies.
European Parliament urges Brussels to act on energy grids
The European Parliament calls on the Commission to strengthen energy infrastructure and accelerate the implementation of the Clean Industrial Deal to enhance the continent's energy flexibility and security amid increased market volatility.
Europe Commits Major Investments to Electricity Grids and the Clean Industrial Deal
The European Commission unveils an ambitious plan to modernize electricity grids and introduces the Clean Industrial Deal, mobilizing hundreds of billions of euros to strengthen the continent's industrial and energy autonomy.
Wood Mackenzie highlights advantage of regulated utilities amid data centre boom
In the United States, regulated electric grid operators hold a decisive advantage in connecting new data centres to the grid, now representing 134 GW of projects, according to a Wood Mackenzie report published on June 19.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS