Japanese Government considers limit on coal-fired power generation

• 8 years ago (2015-09-22)
• David Flin

Asia 850

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The Japanese Industry Ministry is considering limiting each utility’s coal-fired power generation to around 50 per cent of its total fossil fuel energy output, according to sources within the Ministry. The sources say that the rule designed to cut carbon emissions may start from April 2016, with the intention of achieving a 26 per cent cut in greenhouse gas emissions by 2030 from 2013 levels.

According to the government plans for 2030, coal-fired power generation will account for 26 per cent of the country’s total energy supply, and LNG 27 per cent. However, some utilities currently have coal-fired power generation levels well above the 50 per cent level, and it is expected that the limit on coal-fired plants will bring protests from the industry.

Japan’s retail electricity market is scheduled to be fully liberalised in April 2016. The proposed limit on coal-fired generation is intended to prevent new entrants to the market relying on low-cost coal-fired generation. The government also hopes that the plan will facilitate closures of less efficient, outdated plant. The government’s goal of carbon emission reduction could be jeopardised unless the power sector, which accounts for roughly 40 per cent of Japan’s total greenhouse gas emissions, accelerates reduction efforts.