- Electricity prices in Japan surged 19.6% on November 19, driven by increased heating demand amid a cold spell.
- The Ministry of Economy reported a 4.2% increase in LNG stocks, ensuring stable supply during winter.
- Despite higher demand, operators confirm no immediate need for additional LNG shipments, though prolonged cold weather could test reserves.
Electricity prices in Japan soared by 19.6% on November 19, rising to 15.31 yen per kilowatt-hour (kWh), up from 12.80 yen the previous day. The spike reflects a cold spell that has increased heating demand, particularly in eastern and northern regions.
Prices jumped across multiple regions, including Tohoku, Tokyo, Chubu, Hokuriku, and Kansai. This marks the highest price since October 18, when prices hit 15.98 yen/kWh. The Japan Meteorological Agency (JMA) reported that maximum temperatures in Tokyo dropped to 16°C on November 18, just below the 30-year average for the time of year.
The temperature is expected to continue to fall. JMA forecasts temperatures of 13°C on November 19, 12°C on November 20, and 15°C on November 21. The cold snap has increased electricity consumption as more homes and businesses rely on heating.
The use of thermal fuels like liquefied natural gas (LNG) and city gas has increased to meet this demand. However, energy operators say no additional spot LNG shipments are required.
An industry representative said most utilities had already planned for a cold winter. “Current stock levels should be enough to meet demand, though the situation could change,” they said.
On November 10, Japan’s Ministry of Economy, Trade, and Industry reported a 4.2% increase in LNG stocks held by major power utilities. This brought stocks to 2.21 million metric tons, marking the second consecutive weekly increase. This rise in reserves ensures a stable supply during the colder months.
Despite higher electricity prices and rising demand, operators say there is no urgent need for more LNG shipments. The proactive management of supplies has helped avoid any immediate shortfall.
Japan’s power market remains heavily reliant on fossil fuels, especially during peak demand in winter. This dependency serves as a reminder of the country’s ongoing energy challenges, even as it works to diversify its energy sources and improve grid resilience.
The cold weather has also strained electricity production, with demand rising as many homes and businesses turn to heating systems. Energy firms have closely monitored the situation to ensure stock levels remain sufficient to meet future needs.
The continued reliance on fossil fuels highlights Japan’s energy vulnerability despite efforts to reduce dependence on imported fuels. However, the government and energy companies remain confident that a combination of stored LNG and careful planning will help avoid significant disruption.
Japan’s energy sector will remain on high alert as the weather gets colder. While current reserves appear adequate, prolonged cold spells could test the limits of available LNG stocks.