Japan's spot electricity prices surged to 24.13 yen per kilowatt-hour on Monday, marking a notable increase in the nation's power market.

The combination of persistently high liquefied natural gas prices and an approaching typhoon is expected to significantly curb solar power generation this week, adding further upward pressure on electricity costs.

Despite cooler temperatures across the country due to overcast conditions, the next-day delivery electricity price reached its highest level since Wednesday, reflecting the underlying supply constraints.

The JKM benchmark for liquefied natural gas in Northeast Asia remained elevated at 24.025 US dollars per million British thermal units, driven by ongoing concerns that shipping disruptions in the Strait of Hormuz could persist for an extended period.

Asian natural gas prices have climbed to their highest levels since 2022 following heightened tensions in the Middle East, with the region competing fiercely with Europe for available LNG cargoes.

European gas prices also moved higher on Monday, supported by escalating conflict risks after US strikes on an Iranian oil tanker raised fears of broader supply disruptions.

European power prices advanced to 75.005 euros per megawatt-hour, equivalent to 87.12 US dollars, as the global energy complex continues to grapple with supply-side uncertainties.

According to the Japan Meteorological Agency, this week's typhoon and cloudy weather patterns could bring heavy rainfall across the country, with temperatures expected to fall below 30 degrees Celsius in many areas.

The agency issued landslide and heavy rain warnings for Chiba Prefecture on Monday, forecasting up to 80 millimetres of precipitation within a 24-hour period.

Institutional forecasts indicate that temperatures in Tokyo will retreat this week, ranging between 27 and 31 degrees Celsius, while central and Hokuriku regions could see temperatures drop below 24 degrees Celsius.

Typhoon Krovanh is currently circling near Okinawa and is expected to approach the Kyushu coast by Tuesday, potentially bringing further weather-related disruptions to the region.

Owing to the cloud cover suppressing sunlight, photovoltaic power generation this week is projected to fall below the 30-day historical average, with Eastern Japan's solar output peaking at an estimated 15,060 megawatts on Saturday, while Western Japan's peak is expected to reach 24,581 megawatts.