The return of old King Coal

The world is turning against nuclear, so where can it go for its energy needs? The only real answer is coal, says James McKeigue.

Last weekend was a watershed moment for Japan. For the first time in four decades, none of its 50 nuclear plants were operating, sending the country's power grid back to the pre-nuclear era. The question now is, how long will it stay that way? The answer largely boils down to politics. Since the Fukushima plant was damaged in last year's earthquake and tsunami, opposition to nuclear power has grown. As plants have shut down for new safety checks, pressure from local communities has prevented central government from turning them back on again.

Given the tragic circumstances, the opposition is understandable. Yet this leaves the Japanese government in a tricky situation. Japan has few indigenous energy resources and has had to replace the lost nuclear output with extra imports of oil, coal and gas, resulting in Japan posting its biggest-ever trade deficit earlier this year. Without nuclear power, the country is going to have to spend a lot more to keep the lights on in future.

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James McKeigue

James graduated from Keele University with a BA (Hons) in English literature and history, and has a certificate in journalism from the NCTJ. James has worked as a freelance journalist in various Latin American countries.He also had a spell at ITV, as welll as wring for Television Business International and covering the European equity markets for the Forbes.com London bureau. James has travelled extensively in emerging markets, reporting for international energy magazines such as Oil and Gas Investor, and institutional publications such as the Commonwealth Business Environment Report. He is currently the managing editor of LatAm INVESTOR, the UK's only Latin American finance magazine.