Given the current situation in the Middle East affecting fuel prices, we believe that uncertainty regarding future LNG procurement is increasing, an official said
Japan lifts curbs on coal plants to tackle fuel supply uncertainty. Representational Image
Japan’s government has decided to temporarily ease restrictions on coal-fired power plants as it faces an energy crunch linked to the conflict in West Asia. Officials said the move is aimed at ensuring a stable electricity supply as uncertainty grows over fuel imports, reported AFP.
The proposal was presented at a government panel meeting and has been approved, according to the industry ministry.
An official at the meeting said, “Given the current situation in the Middle East affecting fuel prices, we believe that uncertainty regarding future LNG procurement is increasing,” as reported by AFP.
Restrictions to be relaxed for one year
Until now, power companies in Japan were required to limit the operation of coal-fired plants, known for high carbon emissions to around 50 percent capacity.
Under the new plan, the government will allow full operation of older and less efficient coal plants for one year, starting from the new fiscal year in April. The official added that increasing coal-based power generation would help “ensure the reliability of stable supply,” as per AFP.
Heavy reliance on thermal power
Japan depends heavily on thermal power plants, which generate about 70 percent of its electricity.
i) Coal accounts for around 30 percent of fuel used
ii) Liquefied natural gas (LNG) makes up another 30 percent
iii) Oil contributes about 7 percent
The government estimates that the move could save about 5,00,000 tonnes of LNG, helping reduce pressure on gas imports.
Impact of West Asia conflict
The decision comes after the ongoing conflict in West Asia disrupted global energy supplies. Iran’s actions, including partial closure of the Strait of Hormuz and targeting energy facilities, have made fuel shipments uncertain and more expensive.
Japan is particularly vulnerable, as over 90 percent of its oil imports come from the Middle East and around 10 percent of LNG imports are sourced from the region To manage the situation, Japan has also started releasing parts of its strategic oil reserves.
Regional trend towards coal
Japan is not alone in turning to coal. Other Asian countries are also increasing reliance on traditional energy sources including South Korea who plans to lift limits on coal power and boost nuclear output while the Philippines is increasing coal power generation to control electricity costs.
These steps highlight how countries are prioritising energy security amid global uncertainty.
(With AFP Inputs)
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