Japan will expand use of coal-fired power to bolster energy security after Middle East disruptions. Less-efficient plants will be allowed into capacity market auctions from April, reversing climate-driven limits. Supply risks from Hormuz disruptions and LNG outages in Qatar have exposed Asia’s dependence on the region. South Korea and parts of Europe are also turning to coal amid soaring gas prices. Coal was Japan’s largest power source in 2024, and the move may offset about 500,000 tons of LNG

2026-03-27

Japan will expand use of coal-fired power to bolster energy security after Middle East disruptions. Less-efficient plants will be allowed into capacity market auctions from April, reversing climate-driven limits. Supply risks from Hormuz disruptions and LNG outages in Qatar have exposed Asia’s dependence on the region. South Korea and parts of Europe are also turning to coal amid soaring gas prices. Coal was Japan’s largest power source in 2024, and the move may offset about 500,000 tons of LNG use.