Japan to boost coal-fired power as Mideast war causes energy turmoil

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TOKYO: Japan is temporarily lifting restrictions on coal-fired power plants to combat an energy crunch triggered by Middle East war turmoil. An industry ministry official explained that ‘uncertainty regarding future LNG procurement is increasing,’ prompting a shift to allow older, less efficient plants to operate at full capacity. This emergency measure aims to ‘ensure the reliability of stable supply’ as global fuel prices remain volatile.

The strategic pivot is expected to ‘result in an LNG savings effect of approximately 500,000 tons’ over the next fiscal year. By maximizing coal primarily sourced from Australia and Indonesia Japan seeks to mitigate the impact of disrupted trade routes like the Strait of Hormuz. This decision aligns with a broader regional trend, as neighboring nations similarly prioritize coal to "keep electricity costs down" during the crisis.

While Japan remains a major energy consumer, it faces significant vulnerability with over 90% of its oil originating from the Middle East. To further stabilize the domestic market, Tokyo has also ‘started to release another part of its strategic oil reserves.’ This pragmatic return to coal highlights the difficult balance between immediate national security and long-term environmental goals during periods of geopolitical upheaval.