Japan to Raise Operating Rate of Coal-Fired Power Plants

TOKYO (Jiji Press) — The industry ministry decided Friday to raise the operating rate of coal-fired thermal power plants for one year from April, amid uncertainty over liquefied natural gas procurement due to the deteriorating situation in the Middle East.

At a meeting of an expert panel, ministry officials explained energy-related measures in response to the tensions in the region.

Power suppliers have been urged to keep the operating rate of coal-fired thermal power stations, which emit a significant amount of carbon dioxide and have low power generation efficiency, at or below 50%.

The restriction will not be applied for fiscal 2026, which starts in April.

The government hopes the one-year suspension of the restriction will help stabilize power supply as the proportion of imports from regions other than the Middle East is higher for coal than LNG, which is used as energy for gas-fired thermal power generation.

Of Japan’s power source mix in fiscal 2024, gas- and coal-fired power generation accounted for slightly more than 30% and slightly less than 30%, respectively.