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.
|
|
Thursday, 15 July 21
U.S. FOSSIL FUEL CONSUMPTION FELL BY 9% IN 2020, THE LOWEST LEVEL IN NEARLY 30 YEARS - EIA
U.S. fossil fuel consumption fell by 9% in 2020, the lowest level in nearly 30 years
In 2020, total consumption of fossil fuels in t ...
Thursday, 15 July 21
IN 2020, U.S. COAL PRODUCTION FELL TO ITS LOWEST LEVEL SINCE 1965 - EIA
U.S. coal production totaled 535 million short tons (MMst) in 2020, a 24% decrease from the 706 MMst mined in 2019 and the lowest level of coal pro ...
Wednesday, 14 July 21
MARKET INSIGHT - INTERMODAL
In its latest Global Economic Prospects report, the world bank recorded the strongest post-recession global growth in 80 years, but emerging and de ...
Tuesday, 13 July 21
JAPAN STILL SEEKING TO EXPLOIT COAL POWER LOOPHOLES - IEEFA
JBIC wants to continue burdening developing nations with its expensive coal-fired power technology
Japan is continuing to push its expensive c ...
Sunday, 11 July 21
COAL SHOWS ITS STAYING POWER AS ECONOMIES BOUNCE BACK - THE WALL STREET JOURNAL
Coal use is surging in some of the world’s largest economies as electricity demand rebounds from the pandemic, illustrating the challenges to ...
|
|
|
Showing 521 to 525 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Africa Commodities Group - South Africa
- Maheswari Brothers Coal Limited - India
- Mintek Dendrill Indonesia
- Interocean Group of Companies - India
- Indian Energy Exchange, India
- Bayan Resources Tbk. - Indonesia
- Baramulti Group, Indonesia
- Mercuria Energy - Indonesia
- PowerSource Philippines DevCo
- IHS Mccloskey Coal Group - USA
- London Commodity Brokers - England
- Simpson Spence & Young - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Lanco Infratech Ltd - India
- Thai Mozambique Logistica
- Romanian Commodities Exchange
- Electricity Generating Authority of Thailand
- Antam Resourcindo - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Essar Steel Hazira Ltd - India
- Indo Tambangraya Megah - Indonesia
- Economic Council, Georgia
- Wood Mackenzie - Singapore
- Intertek Mineral Services - Indonesia
- Deloitte Consulting - India
- Grasim Industreis Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Manunggal Multi Energi - Indonesia
- Global Business Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Singapore Mercantile Exchange
- Independent Power Producers Association of India
- Attock Cement Pakistan Limited
- Iligan Light & Power Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- Renaissance Capital - South Africa
- Wilmar Investment Holdings
- Agrawal Coal Company - India
- Central Electricity Authority - India
- Standard Chartered Bank - UAE
- Energy Development Corp, Philippines
- VISA Power Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Semirara Mining Corp, Philippines
- Planning Commission, India
- Bhatia International Limited - India
- SMG Consultants - Indonesia
- Indika Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- Central Java Power - Indonesia
- Sarangani Energy Corporation, Philippines
- Eastern Coal Council - USA
- South Luzon Thermal Energy Corporation
- White Energy Company Limited
- Eastern Energy - Thailand
- Cement Manufacturers Association - India
- Electricity Authority, New Zealand
- The Treasury - Australian Government
- McConnell Dowell - Australia
- Directorate Of Revenue Intelligence - India
- Meenaskhi Energy Private Limited - India
- TeaM Sual Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- Indogreen Group - Indonesia
- Aditya Birla Group - India
- Australian Commodity Traders Exchange
- Straits Asia Resources Limited - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Bangladesh Power Developement Board
- Posco Energy - South Korea
- PetroVietnam Power Coal Import and Supply Company
- Coastal Gujarat Power Limited - India
- Bulk Trading Sa - Switzerland
- Alfred C Toepfer International GmbH - Germany
- GAC Shipping (India) Pvt Ltd
- PTC India Limited - India
- Sical Logistics Limited - India
- Samtan Co., Ltd - South Korea
- Banpu Public Company Limited - Thailand
- Xindia Steels Limited - India
- MS Steel International - UAE
- Makarim & Taira - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Savvy Resources Ltd - HongKong
- Larsen & Toubro Limited - India
- India Bulls Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Indonesian Coal Mining Association
- Mjunction Services Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Ministry of Transport, Egypt
- Bharathi Cement Corporation - India
- Kideco Jaya Agung - Indonesia
- Thiess Contractors Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Kaltim Prima Coal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Aboitiz Power Corporation - Philippines
- The State Trading Corporation of India Ltd
- Bhushan Steel Limited - India
- CNBM International Corporation - China
- Coalindo Energy - Indonesia
- SMC Global Power, Philippines
- Krishnapatnam Port Company Ltd. - India
- Asmin Koalindo Tuhup - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Mercator Lines Limited - India
- AsiaOL BioFuels Corp., Philippines
- Trasteel International SA, Italy
- Indian Oil Corporation Limited
- Cigading International Bulk Terminal - Indonesia
- Ministry of Mines - Canada
- Gujarat Sidhee Cement - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Edison Trading Spa - Italy
- Petrochimia International Co. Ltd.- Taiwan
- Orica Mining Services - Indonesia
- Chamber of Mines of South Africa
- Parliament of New Zealand
- Sree Jayajothi Cements Limited - India
- Chettinad Cement Corporation Ltd - India
- Marubeni Corporation - India
- Metalloyd Limited - United Kingdom
- New Zealand Coal & Carbon
- Neyveli Lignite Corporation Ltd, - India
- Tata Chemicals Ltd - India
- European Bulk Services B.V. - Netherlands
- Uttam Galva Steels Limited - India
- Barasentosa Lestari - Indonesia
- GMR Energy Limited - India
- Tamil Nadu electricity Board
- Rashtriya Ispat Nigam Limited - India
- Borneo Indobara - Indonesia
- The University of Queensland
- Parry Sugars Refinery, India
- Videocon Industries ltd - India
- Jaiprakash Power Ventures ltd
- Dalmia Cement Bharat India
- SN Aboitiz Power Inc, Philippines
- Australian Coal Association
- ASAPP Information Group - India
- Madhucon Powers Ltd - India
- Therma Luzon, Inc, Philippines
- San Jose City I Power Corp, Philippines
- Leighton Contractors Pty Ltd - Australia
- Holcim Trading Pte Ltd - Singapore
- Meralco Power Generation, Philippines
- Price Waterhouse Coopers - Russia
- Vedanta Resources Plc - India
- Port Waratah Coal Services - Australia
- Ind-Barath Power Infra Limited - India
- Merrill Lynch Commodities Europe
- Kobexindo Tractors - Indoneisa
- ICICI Bank Limited - India
- Sindya Power Generating Company Private Ltd
- Georgia Ports Authority, United States
- IEA Clean Coal Centre - UK
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Makmur.PT - Indonesia
- Kumho Petrochemical, South Korea
- LBH Netherlands Bv - Netherlands
- Minerals Council of Australia
- Ambuja Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Globalindo Alam Lestari - Indonesia
- Siam City Cement PLC, Thailand
- Sinarmas Energy and Mining - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Karbindo Abesyapradhi - Indoneisa
- Malabar Cements Ltd - India
- Salva Resources Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Medco Energi Mining Internasional
- Timah Investasi Mineral - Indoneisa
- Heidelberg Cement - Germany
- Bhoruka Overseas - Indonesia
- Oldendorff Carriers - Singapore
- Jindal Steel & Power Ltd - India
- Coal and Oil Company - UAE
- Kapuas Tunggal Persada - Indonesia
- Altura Mining Limited, Indonesia
- Sakthi Sugars Limited - India
- Karaikal Port Pvt Ltd - India
- Ministry of Finance - Indonesia
- Riau Bara Harum - Indonesia
- Pendopo Energi Batubara - Indonesia
- Goldman Sachs - Singapore
- Rio Tinto Coal - Australia
- CIMB Investment Bank - Malaysia
- Siam City Cement - Thailand
- Latin American Coal - Colombia
- OPG Power Generation Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Petron Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Power Finance Corporation Ltd., India
- Energy Link Ltd, New Zealand
- Commonwealth Bank - Australia
- Formosa Plastics Group - Taiwan
- Anglo American - United Kingdom
- Maharashtra Electricity Regulatory Commission - India
- Carbofer General Trading SA - India
- Vizag Seaport Private Limited - India
- GVK Power & Infra Limited - India
- Star Paper Mills Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sojitz Corporation - Japan
- GN Power Mariveles Coal Plant, Philippines
- Orica Australia Pty. Ltd.
- Vijayanagar Sugar Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Binh Thuan Hamico - Vietnam
|
| |
| |
|
