Japan's spot power price soars to 2026 high amid heavy snow forecast

Spot prices on the Japan Electric Power Exchange rose to Yen 13.37/kWh for Jan. 21, marking the third consecutive daily increase, with the 24-hour day-ahead price soaring 16.4% from Yen 11.49/kWh for Jan. 20, amid a heavy snow forecast.

The Jan. 21 JEPX price is the highest so far in 2026. The price was last higher for Oct. 31, 2025, when it stood at Yen 13.43/kWh. Higher contract settlement prices in the Hokkaido, Tohoku, Tokyo and Chubu areas lifted the Jan. 21 JEPX price.

The higher JEPX price comes as Japan issued an emergency announcement on Jan. 19 regarding heavy snow expected over Jan. 21-25, with a strong winter pressure pattern forecast to persist across the country, the Ministry of Land, Infrastructure, Transport and Tourism said, as the country's integrated reserve power supply capacity ratio is expected to drop amid a cold spell.

In the emergency announcement, the MLIT said heavy snowfall is forecast to continue for more than five days, especially in mountainous and lowland areas along the Sea of Japan, from northern to western Japan, with the possibility of significant total snow accumulation.

Heavy snowfall is expected to impact solar power output, increasing demand for thermal power generation.

Heavy snow

In its heavy snow outlook issued at 4:45 am local time (1945 GMT) on Jan. 20, the Japan Meteorological Agency said that a strong winter pressure pattern is expected to persist from Jan. 21 until around Jan. 25, from northern to western Japan, especially along the Sea of Japan coast.

In 24 hours, to 6 am local time Jan. 21, Hokkaido and Hokuriku are forecast to have maximum snowfall of 50 cm each, according to the JMA. This will be followed by a maximum of 100 cm in Hokuriku, 70 cm in Tohoku, 50 cm in Kinki, and 40 cm each in Hokkaido and Kanto-Koshin in the next 24 hours to 6 am Jan. 22, the JMA said.

Hokuriku is forecast to have a maximum of 100 cm snowfall in the 24 hours to Jan. 23, when Tohoku is projected to have 70 cm, Kinki 50 cm and Kanto-Koshin 40 cm, the JMA said, adding that the strong winter pressure pattern is expected to continue until around Jan. 25, with heavy snowfall forecast along the Sea of Japan coast from northern to western Japan.

Japan's LNG stocks held by major power utilities dipped 0.4% week over week to 2.28 million metric tons as of Jan. 11, the Ministry of Economy, Trade and Industry said Jan. 14, with at least two Japanese power utilities seeking spot LNG cargoes for delivery in February and March.