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Japan to ease coal power limits amid energy crunch

Published on: March 27, 2026 11:00 AM

Japan to temporarily lift coal power plant curbs over Hormuz crisis - Nikkei Asia

TOKYO: Japan plans to temporarily relax restrictions on coal fired power plants as it grapples with an energy shortage triggered by the ongoing Middle East conflict, a government official confirmed on Friday.

Read More: Japan’s largest nuclear plant nears historic restart

The move will allow older and less efficient coal-fired plants to operate at full capacity for one year starting from the new fiscal year in April. Previously, power suppliers were required to limit the operating rate of such plants to 50% due to their high carbon emissions.

「石炭火力の稼働率引き上げ イラン情勢対応で緊急措置、26年度に限定」の英文記事をNikkei Asia @NikkeiAsia に掲載しています。

▶Japan to temporarily lift coal power plant curbs over Hormuz crisishttps://t.co/9yAGQCaDxQ

— 日本経済新聞 電子版(日経電子版) (@nikkei) March 26, 2026

An official from Japan’s industry ministry said the proposal would be formally presented at an expert panel meeting later in the day. The decision reflects growing pressure on energy systems as global fuel supplies remain disrupted.

The crisis stems largely from tensions in the Middle East, where Iran has partially restricted traffic through the Strait of Hormuz, a critical route for global energy shipments. The disruption has significantly affected oil and gas flows, pushing countries to rely more heavily on alternative energy sources.

Japan, which depends on thermal power plants for about 70% of its electricity, uses coal as a major fuel source. While much of its oil imports come from the Middle East, the country sources nearly 80% of its coal from Australia and Indonesia, ensuring a relatively stable supply.

Other Asian economies are taking similar steps. South Korea is considering lifting caps on coal power while boosting nuclear energy production, and Philippines aims to increase coal output to stabilise electricity prices.

Read More: Major firms urge Japan to bolster 2030 renewables goal

In addition to boosting coal use, Japan has begun releasing more of its strategic oil reserves to manage supply disruptions. The temporary policy shift highlights the difficult balance between energy security and environmental commitments as the crisis continues.

Filed Under: Top Stories, World Tagged With: Asia energy, coal power, energy policy, Japan energy crisis, Latest, Middle East conflict, Strait of Hormuz

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