Japan's spot electricity prices surge significantly due to high LNG costs and limited photovoltaic output

1. On Monday, the next-day delivery spot electricity price in Japan rose to 24.13 yen per kilowatt-hour, reaching a new high since Wednesday. Although nationwide rainy weather brought a drop in temperatures, pressure on the electricity supply side pushed prices higher. 2. Persistently high liquefied natural gas costs are the main factor driving up electricity prices. The Northeast Asia liquefied natural gas spot benchmark JKM price remains elevated at 24.025 US dollars per million British thermal units, reflecting market concerns that disruptions to shipping in the Strait of Hormuz may persist for a long time. 3. Meanwhile, due to the impact of the upcoming typhoon, photovoltaic power generation in Japan is expected to be significantly suppressed this week, further intensifying the tight electricity supply situation.