Japan's Power Prices Jump 25% Amid LNG and Coal Cost Increases

Japan's average power prices hit a new high this week, climbing more than 25% to $0.19 per kilowatt-hour, according to data from Japan Electric Power Exchange. This follows a sharp increase in liquefied natural gas and coal prices, which have been exacerbated by global supply disruptions and heightened demand. The shift from gas to coal for power generation has intensified as LNG remains expensive, particularly amid ongoing tensions in the Middle East and competition for winter supplies in Europe. Japan has been increasing coal usage while reducing gas-fired generation since the war began, a trend mirrored across much of Asia due to affordability and availability challenges.