Asian Countries Plan to Increase Coal-Fired Power Generation

Several Asian governments are increasing their reliance on coal-fired power generation to address severe energy shortfalls triggered by the war in Iran. The conflict has disrupted oil and natural gas shipments, particularly through the Strait of Hormuz, a critical chokepoint for approximately 20% of global oil and natural gas trade.

The crisis has forced a shift back to coal, which often serves as the default backup in the region when liquefied natural gas (LNG) supplies are restricted or renewables are insufficient. While LNG was previously promoted as a bridge fuel to transition from fossil fuels to cleaner energy, the current instability in the Middle East has compromised the stability of these imports.

Regional Responses to Energy Shortfalls

Across Asia, nations are implementing various emergency measures to maintain power grids and meet electricity demand.

• South Korea has lifted ceilings on coal-fired electricity output and announced it will delay the planned shutdown of coal-fired power plants.
• The Philippines has declared a national energy emergency and plans to increase operations at its coal-burning plants.
• India, where coal provides nearly 75% of power generation, has instructed coal plants to operate at maximum capacity and avoid planned outages to meet higher summer demand.
• Thailand has increased output at its largest coal-fired plant.
• Bangladesh increased both its coal-fired power generation and its imports of coal in March 2026.
• Indonesia is prioritizing the use of its domestic coal supplies.
• Vietnam is also boosting its coal-fired power generation.

China’s Energy Security Strategy

China, the world’s largest producer and consumer of coal, has continued a significant buildout of coal capacity to improve energy security. In 2025, China commissioned 78 gigawatts of new coal power capacity, including more than 50 large coal units with generating capacities of 1 gigawatt or more.

This scale of expansion is notable as China commissioned more coal power capacity in 2025 alone than India did over the previous decade. The surge follows blackouts experienced in 2021 and 2022, which prompted a building spree to ensure grid stability.

Despite this increase in coal capacity, China simultaneously expanded its renewable energy infrastructure. In 2025, the country added 315 gigawatts of solar capacity and 119 gigawatts of wind power. This growth in cleaner energy sources resulted in a roughly 1% decrease in the total share of coal in power generation last year, as renewables covered the overall increase in electricity demand.

Environmental and Climate Implications

Climate experts have warned that the pivot back to coal—the most carbon-intensive fossil fuel—threatens to slow the transition to renewable energy and increase planet-warming emissions. The reliance on coal is also expected to worsen smog in major Asian cities.

This kind of crisis is a real sort of warning

Julia Skorupska, Powering Past Coal Alliance

Experts suggest that while coal provides a short-term fix for energy security during geopolitical crises, it exposes the region to future price and supply shocks. They argue that the current crisis should serve as a catalyst for governments to accelerate investments in renewables, which offer a more stable supply independent of Middle Eastern conflict and maritime chokepoints.