Summer hasn't officially arrived yet, but Tokyo has already hit 31 degrees Celsius. The combined cooling load, along with gas and oil supply disruptions, suggests that this wave of spot electricity price increases may just be the beginning.

CoinWorld News reports that due to expected unusually high temperatures driving up electricity demand, along with fuel supply tightening caused by the Iran conflict, Japan’s spot electricity prices have risen to a level not seen in more than a month. On Wednesday, Japan’s nationwide second-day spot electricity price rose by 2.4% from the previous day to 22.36 yen per kilowatt-hour, the highest level since April 9. Since the US and Israel launched attacks on Iran three months ago, Japan’s electricity prices have remained at a level close to the highs seen in 2023, after severe fuel supply disruptions were triggered by the Strait of Hormuz being nearly closed. With high-temperature expectations potentially further boosting cooling demand, spot electricity prices will continue to face upward pressure. According to data from the European Mid-Range Weather Forecast Center, this week Tokyo is expected to get even hotter. Weather agency vaisala said that the highest temperature in Tokyo on Friday will exceed 31 degrees Celsius, clearly higher than normal.