Japan to Ease Coal Power Limits Amid Energy Crisis

Japan is preparing to temporarily lift restrictions on coal-fired power plants as it seeks to ease an energy crunch triggered by the ongoing conflict in the Middle East, an industry official said Friday.

Japanese media outlets, including Jiji Press, had earlier reported that the Ministry of Economy, Trade and Industry was close to announcing the proposal, citing sources.

A ministry official, Takahide Sueda, confirmed that the reports were accurate and said the plan would be presented later in the day at a meeting of an expert panel.

Previously, the government required electricity providers to keep the operating rate of coal-fired power plants that produce high levels of carbon dioxide at 50% or below.

Under the new plan, Japan intends to allow older and less efficient coal-fired plants to operate at full capacity for one year starting from the new fiscal year in April.

Several Asian countries are increasingly turning to coal to sustain economic activity, while the Strait of Hormuz has remained largely closed since the outbreak of the war last month.

Japan relies on thermal power plants for around 70% of its electricity needs, with coal serving as a primary fuel source.

Tokyo also announced on Thursday that it had begun releasing another portion of its strategic oil reserves in an effort to cushion the impact of rising prices caused by the Middle East conflict on the resource-poor country.

Japan is the world’s fifth-largest oil importer and sources more than 90% of its oil from the Middle East.