Japan's wholesale electricity prices have surged to their highest level since January 2023, driven by an intense heatwave and disruptions in gas supply from the Middle East. The nationwide day-ahead electricity price increased by 20% in one week, reaching $0.16 per kilowatt-hour. As temperatures are expected to peak this week, Japan has reduced gas-fired generation in favor of coal due to elevated LNG prices, which have doubled since the Iran conflict began.
We’ll perform a deep-dive analysis of all sources and publicly available external materials, then prepare a structured timeline of events, an in-depth report explaining the background and context, and multiple perspectives.