BY EMMANUEL OGBONNA
Countries across Asia are increasingly reverting to coal-fired power as disruptions linked to conflict in the Middle East strain global oil and gas shipments, exposing the region’s heavy dependence on imported energy.
At the center of the disruption is the Strait of Hormuz, a critical maritime route through which roughly one-fifth of the world’s oil and liquefied natural gas supplies pass. For many Asian economies, which rely heavily on imported fuel, any instability in this corridor quickly translates into supply shortages, price increases and pressure on electricity systems.
Liquefied natural gas, or LNG, has been a key component of Asia’s energy transition strategy. The fuel, which is natural gas cooled into liquid form for transport, has been promoted as a cleaner alternative to coal and oil. While LNG produces fewer emissions than coal when burned, it still contributes to climate change, particularly through methane emissions. Its reliance on global shipping routes also makes it vulnerable to geopolitical disruptions.
As LNG supplies tighten and costs rise, several Asian nations have turned back to coal as a more immediate and reliable source of energy. In India, coal usage has increased significantly to meet rising electricity demand during an intense summer period. South Korea has lifted limits on coal-fired electricity generation to stabilize power supply amid shortages of imported gas.
In Indonesia, the government has prioritized domestic coal consumption over exports, reducing availability for other countries and adding further pressure to regional markets. Meanwhile, Thailand, Philippines and Vietnam are also increasing coal-fired generation to compensate for reduced LNG supply.
Although coal provides a short-term solution to energy shortages, experts warn that it comes with significant long-term consequences. Increased coal use is likely to worsen air pollution in major cities, slow the transition to renewable energy and increase greenhouse gas emissions across the region.
Coal remains a central component of emergency energy planning in Asia due to its availability and established infrastructure. When renewable energy output falls short or gas supplies are disrupted, coal is often the default backup option. However, this reliance also leaves countries exposed to future supply shocks and market volatility.
In China, the world’s largest producer and consumer of coal, authorities have continued expanding coal-fired power capacity in recent years to strengthen energy security. This expansion has taken place alongside significant investments in renewable energy, reflecting a strategy that balances long-term environmental goals with immediate energy needs.
India, the second-largest coal consumer, is preparing for peak electricity demand that could reach around 270 gigawatts during the summer months. Although the country has coal reserves, these are limited and must be carefully managed to meet demand across different sectors.
At the same time, disruptions to fuel shipments have forced countries to redirect limited gas supplies toward industrial uses such as fertilizer production rather than electricity generation, further increasing reliance on coal for power.
Global coal markets are also tightening. Indonesia’s decision to retain more coal for domestic use has reduced exports, while benchmark prices—particularly for coal from Australia—have risen since the conflict began. This creates a situation where coal may be available, but not necessarily affordable.
In the Philippines, President Ferdinand Marcos Jr. has declared a national energy emergency as the country faces rising energy costs and supply uncertainty. Other nations in the region are exploring alternative suppliers, including imports from the United States and neighboring countries, to stabilize their energy needs.
Despite its role in addressing immediate shortages, increased reliance on coal could undermine long-term efforts to reduce emissions. Countries such as Indonesia were already struggling to phase out coal-fired power plants due to financial and logistical challenges, even before the current crisis.
The situation also raises questions about the reliability of LNG as a transition fuel. While it has been promoted as a cleaner alternative, the current disruption highlights how vulnerable it is to geopolitical instability.
South Korea illustrates this challenge clearly. The country has pledged to phase out most coal-fired power plants by 2040 and significantly reduce emissions, but it is currently increasing coal use to manage supply shortages. At the same time, renewable energy growth has been slower than needed to meet its long-term goals.
Beyond economic and policy concerns, the environmental and health impacts of increased coal use are significant. According to the World Health Organization, coal combustion releases fine particles that can enter the lungs and bloodstream, increasing the risk of heart disease, stroke and respiratory illnesses.
Air pollution remains a serious issue across Asia. In India, air quality frequently exceeds safe levels, and authorities have relaxed some environmental rules to cope with fuel shortages. In Vietnam, pollution levels remain high, particularly in urban areas, raising concerns among residents.
For many people, the effects are immediate. In cities such as Hanoi, families are increasingly worried about the health impact of worsening air quality, especially for children and those with respiratory conditions.
Experts warn that while coal may be necessary in the short term, continued reliance could create long-term problems. The current crisis highlights the need for Asian countries to invest more heavily in renewable energy, diversify energy sources and build more resilient systems that can better withstand global disruptions.
As the conflict continues to affect global energy markets, Asia’s return to coal underscores the difficult balance between maintaining energy security today and achieving sustainability in the future.
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