We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Monday, 24 June 24
PLN'S FINANCIAL SUSTAINABILITY RESTS ON ACCELERATED COAL RETIREMENT AND RENEWABLES DEPLOYMENT - MUTYA YUSTIKA
 On 28 May 2024, Indonesia’s national electricity utility, PT Perusahaan Listrik Negara (PLN), released its financial report for 2023. Although the report showed a net profit increase of IDR22 trillion (tn), a 53% rise from 2022, the Institute for Energy Economics and Financial Analysis (IEEFA) calculates that PLN would have recorded a substantial loss of IDR120tn without subsidies and compensations from the Government of Indonesia (GOI).
At first glance, PLN’s cash reserves increased by 9% for the fiscal year 2023, and its electricity sales rose around 7%. This increase in sales contributed the most to PLN’s income growth, amounting to IDR22.2tn. However, despite the improved performance and positive figures, there are underlying red flags.
Despite increased cash reserves, PLN’s liquidity ratio (0.92), quick ratio (0.79), and cash ratio (0.39) were all below 1.00. These figures indicate that the utility is struggling to meet its urgent payment obligations with cash or current assets.
PLN’s financial performance heavily depends on GOI’s subsidies and compensations, which have risen by 16.4% from IDR123tn in 2022 to IDR143tn in 2023. However, these incremental increases could halt in 2025. Discussions at the Ministry of Finance are underway to reduce PLN’s subsidies and compensations under the new administration's programs and policies.
An imminent solution for PLN's financial independence is required. PLN's fiscal potential can be unlocked with minimal GOI assistance by improving efficiency, particularly by reducing operating costs through the adoption of renewables.
Reducing cost and volatility via renewables
The Basic Cost of Providing Electricity (BPP) is arguably the main factor determining electricity costs, which are then translated into tariffs paid by customers. Any increase in BPP adds to the GOI’s financial burden.
Since 2020, coal and gas purchase costs have increased significantly. In 2023, purchased electricity from coal and gas contributed to a 14% increase in operational expenses and accounted for 63% of total operating costs. On average, PLN spent around US$4-5 cents per kilowatt hour (¢/kWh) for coal purchases, almost 40% higher than in 2020.
Additionally, PLN’s exposure to US$-denominated coal prices requires reconsideration. Despite the GOI's coal price cap, PLN has struggled with coal price fluctuations due to exchange rate changes. While purchases are denominated in US$, PLN’s tariff collections are in Indonesian rupiahs.
Apart from the base fuel purchasing costs, PLN also had to factor in shipping and plant maintenance costs. As coal-fired power plants age, they lose efficiency and require more coal to produce each kilowatt hour (kWh) of electricity.
Considering the difficulty in reducing purchased electricity costs and renegotiating power purchase agreements with independent power producers, PLN should accelerate the transition from fossil fuel-based energy to avoid price volatility.
Renewable energy sources are low-cost to operate compared to fossil fuel power plants. Furthermore, IEEFA’s recent report has shown that the levelized cost of electricity is around US$4.78¢/kWh for solar and US$4.77¢/kWh for wind. In comparison, coal costs around US$6.5¢/kWh, which is at least US$1.7¢/kWh more.
Solar and wind are now the lowest-cost energy sources globally and are expected to become even cheaper by 2030. Notably, maintaining coal-fired power plants is more expensive than constructing entirely new, rapidly built renewable energy plants.
Consequently, the gradual retirement of coal-fired power plants and a concerted transition to renewable energy sources will be a win-win solution for Indonesia to fulfill its Paris Agreement commitments and financial goals.
Mutya Yustika, IEEFA
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Friday, 28 June 24
INDIAN POWER STATIONS STOCKED WITH BUMPER COAL SUPPLY AS TRANSPORT WOES EASE - BUSINESS STANDARD
Even as power demand has touched a historic high of 250 gigawatts (Gw) amid sweltering heat this June, India’s power stations are stocked wit ...
Friday, 28 June 24
INDIA'S CY23 COAL USE LARGER THAN NORTH AMERICA, EUROPE COMBINED - THE HINDU
For the first time, India’s coal consumption surpassed that of North America and Europe combined in the calendar year 2023, said Energy Insti ...
Monday, 24 June 24
INDIA'S COAL-BASED POWER DEMAND AT ALL-TIME HIGH, GOVERNMENT SAYS - REUTERS
India’s demand for coal-based power has risen by 7.3% this fiscal year to an all-time high, the government said in a statement on Wednesday.
...
Monday, 24 June 24
CHINA'S COAL INDUSTRY TURNS GREENER THROUGH INNOVATIVE APPROACHES - PEOPLE'S DAILY
At an opencast mine operated by Inner Mongolia Pingzhuang Coal Group Co. Ltd., a subsidiary of CHN Energy Investment Group (CHN Energy), a 14-meter ...
Monday, 24 June 24
PHILIPPINES COAL SUPPLY ENOUGH UNTIL 2030 - PHILSTAR GLOBAL
The country’s existing coal-fired power plants are sufficient to ensure enough base load capacity in the next six years, Energy Secretary Rap ...
|
|
|
Showing 11 to 15 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Bahari Cakrawala Sebuku - Indonesia
- Krishnapatnam Port Company Ltd. - India
- London Commodity Brokers - England
- Mintek Dendrill Indonesia
- Mercator Lines Limited - India
- Metalloyd Limited - United Kingdom
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PTC India Limited - India
- Madhucon Powers Ltd - India
- Medco Energi Mining Internasional
- Meenaskhi Energy Private Limited - India
- Global Business Power Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Africa Commodities Group - South Africa
- Savvy Resources Ltd - HongKong
- Leighton Contractors Pty Ltd - Australia
- Kepco SPC Power Corporation, Philippines
- Bhatia International Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dalmia Cement Bharat India
- Bayan Resources Tbk. - Indonesia
- Price Waterhouse Coopers - Russia
- Bangladesh Power Developement Board
- Tata Chemicals Ltd - India
- Borneo Indobara - Indonesia
- Thiess Contractors Indonesia
- Simpson Spence & Young - Indonesia
- Indika Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Eastern Coal Council - USA
- Indian Oil Corporation Limited
- Thai Mozambique Logistica
- SN Aboitiz Power Inc, Philippines
- Singapore Mercantile Exchange
- Planning Commission, India
- Maharashtra Electricity Regulatory Commission - India
- Sakthi Sugars Limited - India
- Grasim Industreis Ltd - India
- Port Waratah Coal Services - Australia
- Chettinad Cement Corporation Ltd - India
- Romanian Commodities Exchange
- Gujarat Electricity Regulatory Commission - India
- ASAPP Information Group - India
- Jindal Steel & Power Ltd - India
- Star Paper Mills Limited - India
- Indian Energy Exchange, India
- Asmin Koalindo Tuhup - Indonesia
- Aditya Birla Group - India
- Goldman Sachs - Singapore
- Posco Energy - South Korea
- Oldendorff Carriers - Singapore
- Videocon Industries ltd - India
- Trasteel International SA, Italy
- Coalindo Energy - Indonesia
- Vedanta Resources Plc - India
- Parry Sugars Refinery, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Wood Mackenzie - Singapore
- White Energy Company Limited
- Gujarat Mineral Development Corp Ltd - India
- Larsen & Toubro Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Interocean Group of Companies - India
- McConnell Dowell - Australia
- Central Electricity Authority - India
- Altura Mining Limited, Indonesia
- Orica Australia Pty. Ltd.
- Power Finance Corporation Ltd., India
- Anglo American - United Kingdom
- Bhoruka Overseas - Indonesia
- IHS Mccloskey Coal Group - USA
- Ministry of Finance - Indonesia
- Indogreen Group - Indonesia
- Pendopo Energi Batubara - Indonesia
- Edison Trading Spa - Italy
- Independent Power Producers Association of India
- Rio Tinto Coal - Australia
- Bharathi Cement Corporation - India
- Energy Development Corp, Philippines
- Malabar Cements Ltd - India
- Holcim Trading Pte Ltd - Singapore
- SMC Global Power, Philippines
- CIMB Investment Bank - Malaysia
- European Bulk Services B.V. - Netherlands
- Bukit Baiduri Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Indonesian Coal Mining Association
- Samtan Co., Ltd - South Korea
- South Luzon Thermal Energy Corporation
- Bhushan Steel Limited - India
- Sinarmas Energy and Mining - Indonesia
- Carbofer General Trading SA - India
- Merrill Lynch Commodities Europe
- The Treasury - Australian Government
- Attock Cement Pakistan Limited
- PowerSource Philippines DevCo
- Tamil Nadu electricity Board
- Sree Jayajothi Cements Limited - India
- Mjunction Services Limited - India
- Makarim & Taira - Indonesia
- Minerals Council of Australia
- Renaissance Capital - South Africa
- TeaM Sual Corporation - Philippines
- VISA Power Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Bulk Trading Sa - Switzerland
- Electricity Generating Authority of Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- Baramulti Group, Indonesia
- Agrawal Coal Company - India
- India Bulls Power Limited - India
- Karaikal Port Pvt Ltd - India
- Parliament of New Zealand
- Intertek Mineral Services - Indonesia
- Australian Coal Association
- Riau Bara Harum - Indonesia
- Siam City Cement PLC, Thailand
- Lanco Infratech Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Ministry of Mines - Canada
- Billiton Holdings Pty Ltd - Australia
- Ministry of Transport, Egypt
- Deloitte Consulting - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Meralco Power Generation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Latin American Coal - Colombia
- Chamber of Mines of South Africa
- Pipit Mutiara Jaya. PT, Indonesia
- Heidelberg Cement - Germany
- Central Java Power - Indonesia
- PNOC Exploration Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kapuas Tunggal Persada - Indonesia
- Kumho Petrochemical, South Korea
- PetroVietnam Power Coal Import and Supply Company
- Australian Commodity Traders Exchange
- GVK Power & Infra Limited - India
- MS Steel International - UAE
- Semirara Mining and Power Corporation, Philippines
- ICICI Bank Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Uttam Galva Steels Limited - India
- Ambuja Cements Ltd - India
- Orica Mining Services - Indonesia
- Ind-Barath Power Infra Limited - India
- Miang Besar Coal Terminal - Indonesia
- Economic Council, Georgia
- Aboitiz Power Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- The University of Queensland
- Standard Chartered Bank - UAE
- Eastern Energy - Thailand
- Sindya Power Generating Company Private Ltd
- Directorate Of Revenue Intelligence - India
- Neyveli Lignite Corporation Ltd, - India
- LBH Netherlands Bv - Netherlands
- Rashtriya Ispat Nigam Limited - India
- OPG Power Generation Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Kartika Selabumi Mining - Indonesia
- Essar Steel Hazira Ltd - India
- International Coal Ventures Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- Iligan Light & Power Inc, Philippines
- Petron Corporation, Philippines
- Commonwealth Bank - Australia
- Timah Investasi Mineral - Indoneisa
- SMG Consultants - Indonesia
- Georgia Ports Authority, United States
- Petrochimia International Co. Ltd.- Taiwan
- Sojitz Corporation - Japan
- TNB Fuel Sdn Bhd - Malaysia
- Electricity Authority, New Zealand
- San Jose City I Power Corp, Philippines
- IEA Clean Coal Centre - UK
- Directorate General of MIneral and Coal - Indonesia
- Siam City Cement - Thailand
- Energy Link Ltd, New Zealand
- Mercuria Energy - Indonesia
- Xindia Steels Limited - India
- Banpu Public Company Limited - Thailand
- Wilmar Investment Holdings
- Coastal Gujarat Power Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Sidhee Cement - India
- Sarangani Energy Corporation, Philippines
- CNBM International Corporation - China
- Antam Resourcindo - Indonesia
- Formosa Plastics Group - Taiwan
- Alfred C Toepfer International GmbH - Germany
- Kaltim Prima Coal - Indonesia
- Bukit Makmur.PT - Indonesia
- GAC Shipping (India) Pvt Ltd
- Manunggal Multi Energi - Indonesia
- Cement Manufacturers Association - India
- Jorong Barutama Greston.PT - Indonesia
- Indo Tambangraya Megah - Indonesia
- Global Green Power PLC Corporation, Philippines
- Vizag Seaport Private Limited - India
- The State Trading Corporation of India Ltd
- Straits Asia Resources Limited - Singapore
- Coal and Oil Company - UAE
- Sical Logistics Limited - India
- Jaiprakash Power Ventures ltd
- Globalindo Alam Lestari - Indonesia
- Marubeni Corporation - India
- Salva Resources Pvt Ltd - India
- New Zealand Coal & Carbon
- Therma Luzon, Inc, Philippines
- GMR Energy Limited - India
|
| |
| |
|
