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What do Japan’s soaring spot power prices mean for the energy transition?

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21 January 2021

What do Japan’s soaring spot power prices mean for the energy transition?

Report summary

Japan's spot power prices have been hitting historical highs since 1 January 2021, around 20 times higher than the same period last year. The phenomenal power price rally is partly due to severe and extended cold spells, which have pushed up winter peak power demand by 10-30% in recent weeks. However, supply constraints are the root cause for this unprecedented price rally. This insight analyses causes of this phenomenal price spike from demand and supply perspectives and also highlights the implications for the pathway of the energy transition in Japan.

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    What Do Japan’S Soaring Spot Power Prices Mean For The Energy Transition

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