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Combating global warming: Japan plans limits on coal for electric utilities
TOKYO — The Japanese government plans to require electric utilities to limit the amount of power supplied by coal to around 50% of total fossil-fuel energy starting in fiscal 2016.
The Ministry of Economy, Trade and Industry will set common energy-mix targets for the power sector, requiring liquefied natural gas to account for at least 50% of energy produced from fossil fuels while limiting the ratio for coal and others to 50% or less. Those in violation for longer than a set period of time without seeking to remedy the issue will face improvement orders and fines.
METI also plans to encourage upgrading of fossil-fuel power plants by requiring utilities planning new facilities to scrap or idle outdated ones. New plants also will be required to meet the government’s efficiency standards.
Through these efforts, Japan hopes to meet its carbon emissions reduction target.
Under an optimal energy mix adopted by the government, Japan aims to reduce its reliance on coal to 26% of total energy needs while keeping the LNG ratio at 27% in fiscal 2030. The ratio of coal power at major electric utilities is around 35%, and with new facilities being planned, METI concluded that the power sector’s voluntary efforts will not be enough to bring down carbon dioxide emissions.
METI hopes setting a cap for each power company will encourage compliance. But given the time and investment needed to build an LNG power plant, METI plans to grant them a long grace period.
However, Hokkaido Electric, Hokuriku Electric Power and others that lack LNG facilities will be in violation of the targets as soon as they are introduced, making it impossible for those companies to build new coal-fired facilities. The new policy thus is likely to spur strong protests from electric utilities.
Combating global warming: Japan plans limits on coal for electric utilities
