By Yudai Tobe / Yomiuri Shimbun Staff Writer
Jera Co., Japan's largest power generation company, considers it "important to continue operating coal-fired power plants at full capacity to some extent," given the prospect that spot prices of liquefied natural gas are likely to remain high for the time being due to the Middle East situation, said President and CEO Hisahide Okuda during an interview with The Yomiuri Shimbun.
On the other hand, he emphasized that "the advancement of renewable energy and the diversification of fuel sources also positively impact national security," expressing the view that decarbonization is becoming increasingly important as a response to geopolitical risks.
The following is excerpted from the interview.
The Yomiuri Shimbun: As we head into summer, when electricity demand rises, what is your policy for ensuring stable supply?
Hisahide Okuda: We have already secured nearly all the LNG needed to meet summer supply and demand. We no longer need to be overly concerned about supply-demand stability.
The situation differs this time (from 2022 when LNG prices soared due to Russia's aggression against Ukraine) in that there has been a 17% loss of supply in Qatar due to the destruction of some production facilities (in the wake of Iranian attacks). Even if the Strait of Hormuz reopens, LNG prices on the spot market are expected to remain high.
It is important to continue operating coal-fired power plants at full capacity to some extent, and we must also find ways to reduce the volume of (LNG) spot market procurement itself.
Yomiuri: What is the importance of coal-fired power?
Okuda: When considering energy supply, it is important to structure and operate our power sources in a way that simultaneously pursues stability, economic efficiency and sustainability.
Coal has the advantage of being storable, making it very robust from a security standpoint.
Maintaining (coal-fired power) while effectively addressing sustainability issues is highly effective.
Yomiuri: Are there concerns that the trend toward decarbonization is being reversed?
Okuda: Many view U.S. President (Donald) Trump's taking office as having slammed the brakes on it, but I believe that is only superficial.
What deserves attention is China's actions; they are mass-producing everything from solar and offshore wind to batteries while keeping costs down. Japan needs to move forward steadily to ensure it does not fall behind, not only in terms of price competitiveness but also in non-price competitiveness -- namely, decarbonization.
The emergence of geopolitical risks this time has also brought new points of discussion to the fore. Fundamentally, the advancement of renewable energy and the diversification of fuel sources also positively impact national security. Going forward, I expect we will see discussions from a perspective that 'promoting decarbonization is important for ensuring national security as well.'
----
This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
YDN-M0000210490-1
(END) Dow Jones Newswires
June 18, 2026 01:11 ET (05:11 GMT)
Copyright (c) 2026 The Yomiuri Shimbun