The Japanese government has announced it will pause a measure aimed at limiting the operation of coal-fired power plants, due to the conflict in Iran threatening the supply of LNG.

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World Utilities Congress 2027

The government had been withholding some subsidies for operators of coal-fired power plants when the operation rate exceeds 50 per cent. However, the government has announced that it will suspend the measure throughout fiscal 2026, starting in April. The move goes against the government policy of decarbonisation, but the government claims it is necessary to ensure a stable power supply.

Japan receives about 11 per cent of its LNG from the Middle East.