Japan Will Ease Restrictions on Coal-Fired Power to Safeguard Energy Supplies

The measure is expected to reduce Japan’s consumption of liquefied natural gas by about 500,000 tons annually.

Published: 3/27/2026, 5:44:31 PM EDT

Japan Will Ease Restrictions on Coal-Fired Power to Safeguard Energy Supplies — Japanese Prime Minister Sanae Takaichi speaks during a press conference at the prime minister's official residence in Tokyo on Jan. 19, 2026. (Rodrigo Reyes Marin/Reuters)

Japan will temporarily ease restrictions on coal-fired power plants and may increase nuclear output in the fiscal year 2026 to safeguard energy supplies, Japanese Prime Minister Sanae Takaichi said on March 27.

The measures are part of a broader effort by Tokyo to reduce reliance on liquefied natural gas (LNG) and strengthen national energy security, amid the ongoing Iran war and the effective closure of the Strait of Hormuz.

LNG accounts for roughly 30 percent of Japan’s electricity supply, far exceeding oil-fired generation at about 7 percent, Takaichi said in a March 27 post on X.

LNG imports via the Strait of Hormuz account for about 6 percent of Japan’s total supply, or roughly 4 million tons, Takaichi added. She said that Japanese utilities’ inventories are currently close to that level, and that alternative procurement is progressing.

“For this reason, there is currently no disruption to the stable supply of electricity, but to ensure even greater preparedness, we will increase the operation of coal-fired power plants and conserve LNG usage,” she said.

In 2024, Japan’s coal-fired electricity generation totaled 295,322 gigawatt-hours, according to IEA data.

Takaichi said that operating restrictions on inefficient coal plants in fiscal 2026 will not apply. The move is expected to reduce LNG consumption by about 500,000 tons annually, according to the prime minister.

Nuclear Energy

Takaichi has previously said that nuclear power is essential for Japan’ economic stability.

Last month, Japan restarted Unit 6 of its largest nuclear power plant, the Kashiwazaki-Kariwa Nuclear Power Station.

According to the U.S. Energy Information Administration (EIA), nuclear output is expected to replace natural gas, which accounted for 33 percent of Japan’s electricity in 2024.

Takaichi said that if Unit 6 of Kashiwazaki-Kariwa runs at full capacity, the combined savings could reach about 1.1 million tons of LNG per year. This would allow Japan to cut LNG imports through the Strait of Hormuz by roughly 40 percent, she added.

Kashiwazaki Kariwa nuclear power plant in Kashiwazaki, Niigata Prefecture, Japan, on Nov. 7, 2025. (Kyodo via Reuters)

“Moving forward, we will continue to take flexible measures as needed to ensure the stable supply of electricity,” Takaichi said.

Of Japan’s 32 operable reactors, 15 are currently running, three have received initial approval to restart, six are under review, and eight have not applied for restart, according to Japanese government estimates cited on March 2 by the EIA.

Emergency Releases

Takaichi said that Japan is also coordinating with G7 countries and the International Energy Agency (IEA) to ensure stable fuel supplies.

The IEA announced the release of 400 million barrels of crude and products from emergency stockpiles on March 11, while Japan said it would release 80 million barrels. Last week, Japanese officials said the country started releasing 15 days’ worth of privately held oil on March 16.

“In the future, we will sequentially release a total of approximately 8.5 million KL (about a one-month supply) from 11 domestic bases, ensuring the utmost preparedness for stable domestic energy supply,” Takaichi said on March 27.

She added that even if the Iran conflict lasts longer, the Japanese government will keep adjusting its support to ensure people’s daily lives are not disrupted.

The statement follows a March 25 meeting in Tokyo between Takaichi and IEA executive director Fatih Birol, during which she asked the agency to prepare for further coordinated oil reserve releases if the crisis continues.

Alongside energy measures, the Japanese government is introducing support for businesses affected by rising fuel costs.

Takaichi said in a March 27 post on X that the government would implement interest rate reductions on safety-net loans from the Japan Finance Corporation and expand eligibility criteria starting April 1 to include disruptions linked to the Middle East situation.

About 1,000 consultation centers had been set up nationwide since March 23, offering various support services for small and medium-sized affected by the Middle East conflict.

Authorities have also urged companies and institutions to reflect higher energy and raw material costs in transaction pricing.

From The Epoch Times