In the countries of Northeast Asia, the government policy will continue to influence the mix of generating capacity and prevent it from being limited to thermal plants. In Japan and South Korea, the governments are likely to manage the fuel mix and enforce the diversified targets set by the national energy policy. In China, the government's control over the fuel mix will be substantially reduced. Hydropower and clean-coal technology are likely to be adversely affected. In Taiwan, the political momentum has shifted to IPPs and to providing the bidders with the flexibility to choose the type of plant they want to build.
Nuclear options are likely to suffer a serious set-back.
Natural gas is presently a favored option. However, it could suffer when gas requirements reach the capacity of import facilities. At such a juncture, expansion of gas imports would require substantial up-front investment and may not be attractive to private investors. The Impact on Energy Conservation. There are a number of arguments and counter-arguments about the possible failure of a free market system in optimizing energy use, and the need for government support for energy conservation programs.