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Japan Temporarily Lifts Limits on Older Coal Plants to Bolster Power Supply

The move seeks to shield power supplies from Middle East fuel shocks.

Overview

  • Japan will raise coal plant operating rates and suspend restrictions on older, less efficient units for one year starting in April.
  • Officials say the shift guards against possible oil and LNG shortfalls because Japan buys most coal from Australia and Indonesia, and it is meant to cover spring and summer demand.
  • Thermal power supplies about two-thirds of Japan’s electricity, with gas at roughly 31% and coal at 28.6% in fiscal 2024.
  • The government says the step is temporary and that it still targets net-zero emissions by 2050, citing coal’s higher CO2 output compared with gas.
  • Separately, Taiwan Power submitted a plan to restart nuclear reactors, signaling a turn toward restoring steady baseload supply.