The Strait of Hormuz, a critical chokepoint for 20% of the world’s oil and liquefied natural gas, remains effectively closed for the fifth week due to the Iran war. This disruption has forced Asian nations, which depend heavily on these resources, to adopt drastic measures to secure energy supplies.
Short-Term Measures: Return to Coal
Governments across Asia are temporarily reverting to coal to mitigate the crisis. Thailand has restarted two decommissioned coal plants, while South Korea lifted its 80% operating cap on coal-fired generation. Japan has also removed restrictions on older coal plants, allowing them to operate at full capacity for up to a year. Indonesia is prioritizing domestic coal consumption, tightening supply for its neighbors.
"There’s a danger of a long-term carbon lock-in once countries decide to reverse plans to retire aging coal-fired fleets," warns Sharon Seah, coordinator of the Climate Change in Southeast Asia program at ISEAS–Yusof Ishak Institute.
Long-Term Plans: Accelerating Nuclear Energy
The crisis is also accelerating nuclear energy projects across Asia. Countries are increasingly looking to nuclear power as a long-term solution to energy security. This shift aims to reduce dependence on fossil fuels and stabilize energy supplies amidst geopolitical tensions.
The ongoing disruption of the Strait of Hormuz underscores the fragility of global energy markets and the urgent need for diversified energy strategies. As Asian nations grapple with immediate fuel shortages, the pivot to coal and nuclear energy highlights the complex trade-offs in balancing economic stability with environmental goals.