Data from the Japan Electric Power Exchange confirms that the cost of generating electricity has reached multi-year highs. Japan, historically a major LNG importer, has struggled to secure affordable cargoes while geopolitical instability limits shipments through the Strait of Hormuz. With spot prices for north-east Asian delivery hitting $29.30 per million British thermal units—the highest level since late 2022—gas-fired generation has become prohibitively expensive.

Energy providers have attempted to pivot toward coal, but that strategy offers little relief. Increased Asian demand, coupled with constrained supply from Indonesia, has pushed global Newcastle coal futures 30% higher than pre-war levels. Beyond fuel costs, the grid is currently under additional pressure from scheduled maintenance at several generating facilities, a precautionary measure taken ahead of the peak winter season.