Japan Power Market Outlook 1H 2025: Fuel Costs Drag Prices

BloombergNEF's latest report delves into the key factors shaping Japan's power market, forecasting an average power price of ¥11 per kilowatt-hour over the next two years. Our full analysis covers the influence of declining fuel costs, the interplay of supply and demand, and the persistent uncertainties that define the sector, including changing weather patterns, high solar penetration, rising thermal generator outages, and data center demand.

Here's a look at what's inside:

• An examination of the projected decline in Japan's power prices, with forecasts indicating year-on-year decreases through 2026
• Insights into the reduction in fuel costs, including the impact of the Japan-Korea Marker (JKM) Asian LNG spot benchmark
• Analysis of the tightening supply-demand balance, considering factors such as capacity additions, thermal fleet outages, and nuclear power plant delays