ISTANBUL
Japan has decided to temporarily expand coal-fired power generation for one year to address concerns over crude oil and liquefied natural gas supplies amid the ongoing US-Israeli war with Iran, according to a Kyodo News report on Friday.
A panel at Japan’s Ministry of Economy, Trade and Industry approved a plan Friday to lift operating restrictions on older, less efficient coal-fired plants for one year from April.
The move marks a temporary step back from Japan’s policy of phasing out inefficient coal-fired generation and advancing decarbonization.
The decision comes as US and Israeli attacks on Iran launched in late February have driven up oil prices and disrupted supplies due to the effective closure of the Strait of Hormuz, a key route for energy shipments.
Japan imports most of its oil from the Middle East, while coal supplies from countries such as Australia and Indonesia are seen as less exposed to the conflict.
About 4 million tons of Japan’s annual LNG imports pass through the Strait of Hormuz, and the ministry estimates expanded coal use could reduce LNG consumption by about 500,000 tons a year.
“In order to ensure stable (power) supplies, we will take proactive measures,” a ministry official said, according to Kyodo.
In fiscal 2024, gas-fired thermal power accounted for 32% of Japan’s electricity generation, followed by coal at 29%, according to the Agency for Natural Resources and Energy.