Japan's electricity prices hit highest level since January 2023

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.