An interesting analysis of how geopolitics is reshaping energy policy. Japan is quietly shifting its energy priorities, and it’s worth monitoring.

So, at the beginning of spring, the Japanese government allowed less efficient coal power plants to re-enter the electricity market. Previously, they were almost nonexistent due to climate restrictions, but now everything has changed. The simple reason is that the energy shock caused by the Middle East situation has begun to seriously impact Asian countries.

The regional conflict led to the blockade of the Strait of Hormuz, and the world’s largest liquefied natural gas plant in Qatar has essentially shut down. For countries dependent on Middle Eastern energy resources, this has become a critical issue. Japan is no exception and is very vulnerable to such shocks.

The result? Japan, like other Asian countries, has returned to more active coal usage. This is the paradox of modern energy — in Japan’s energy sector, coal-fired power plants are once again becoming a key player. Data shows that over the past few years, coal has accounted for the largest share of electricity generation in the country, and this trend is only strengthening.

Practically speaking: energy generating companies can now sell electricity through capacity markets, including that produced by less efficient plants. This provides greater system flexibility and enhances energy security.

Geopolitics is overriding climate commitments — at least for now. It’s fascinating to see how real crises are changing energy strategies even in countries that have been leaders in the green transition.