JERA, Japan’s largest coal power generator, a 50-50 joint venture between TEPCO and Chubu Electric Power, plans to implement seasonal shutdowns of coal-fired plants starting as early as fiscal 2026 during spring and fall when electricity demand typically wanes.
The company will initially target facilities with particularly high emissions, including the Hekinan power station near Nagoya. During periods of increased demand or when renewable output falls, JERA will increase its liquefied natural gas generation to compensate.
This operational shift represents a strategic pivot for JERA, which controls over 10,000 megawatts of domestic coal capacity. The company aims to transition coal from a consistent baseload power source to a demand-responsive resource before ultimately closing inefficient plants by 2030.
The move follows competitor J-Power, Japan’s second-largest coal power producer, which began adjusting operations seasonally in western Japan in 2023. J-Power reported that these changes have improved profitability, potentially boosting fiscal 2024 profit by tens of billions of yen ($67 million at current rates).
While coal remains cost-effective at approximately ¥10.7 (7 cents) per kilowatt-hour compared to alternatives, its market competitiveness is declining as nuclear plants restart. Additionally, coal’s higher carbon intensity—twice that of LNG—and expected price increases due to Australian mine closures are accelerating the transition.
Coal currently accounts for about 30% of Japan’s electricity generation, equal to LNG’s share, but the government’s latest energy plan doesn’t specify future proportions for individual fuel types.
