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, 01 July 21
END TO COAL POWER BROUGHT FORWARD TO OCTOBER 2024
Press Release: The deadline to phase out coal from Great Britain's energy system has been brought forward by a whole year, highlighting the UK& ...
Thursday, 01 July 21
WHY BUILD 600 NEW UNPROFITABLE COAL PLANTS? - DEUTSCHE WELLE
Governments in Asia are planning 600 new coal plants that could lose investors $150 billion and derail efforts to limit temperature rise in line wi ...
Thursday, 01 July 21
FIVE ASIAN COUNTRIES ACCOUNT FOR 80% OF NEW COAL POWER INVESTMENT - THE GUARDIAN
Five Asian countries are jeopardising global climate ambitions by investing in 80% of the world’s planned new coal plants, according to a rep ...
Wednesday, 30 June 21
DELTA DUNIA MAKMUR RECORDED AN IMPROVED REVENUE IN Q1 2021; REVENUE INCREASED BY 49% QOQ TO US$160 MILLION ON THE BACK OF COAL PRICE RECOVERY
PT Delta Dunia Makmur Tbk. (“DOID”) released its consolidated financial and operating results that include its primary and wholly-owned ...
Wednesday, 30 June 21
BUMA SIGNED MINING AGREEMENT WITH ADARO
PT Delta Dunia Makmur Tbk. announced that its subsidiary, PT Bukit Makmur Mandiri Utama ("BUMA"), has entered into an agreement for the p ...
|
|
|
Showing 536 to 540 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Tamil Nadu electricity Board
- Kumho Petrochemical, South Korea
- Asia Pacific Energy Resources Ventures Inc, Philippines
- White Energy Company Limited
- Bahari Cakrawala Sebuku - Indonesia
- Ministry of Finance - Indonesia
- Latin American Coal - Colombia
- Semirara Mining and Power Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Bayan Resources Tbk. - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- PTC India Limited - India
- Directorate Of Revenue Intelligence - India
- Antam Resourcindo - Indonesia
- Electricity Generating Authority of Thailand
- Minerals Council of Australia
- PowerSource Philippines DevCo
- Therma Luzon, Inc, Philippines
- Mercuria Energy - Indonesia
- Bangladesh Power Developement Board
- Eastern Coal Council - USA
- Formosa Plastics Group - Taiwan
- The State Trading Corporation of India Ltd
- Manunggal Multi Energi - Indonesia
- Intertek Mineral Services - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bharathi Cement Corporation - India
- Thiess Contractors Indonesia
- VISA Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mintek Dendrill Indonesia
- Jindal Steel & Power Ltd - India
- Global Business Power Corporation, Philippines
- Electricity Authority, New Zealand
- Metalloyd Limited - United Kingdom
- McConnell Dowell - Australia
- Merrill Lynch Commodities Europe
- Kobexindo Tractors - Indoneisa
- Coastal Gujarat Power Limited - India
- Parry Sugars Refinery, India
- Orica Australia Pty. Ltd.
- ICICI Bank Limited - India
- Xindia Steels Limited - India
- SN Aboitiz Power Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Neyveli Lignite Corporation Ltd, - India
- Ministry of Mines - Canada
- Malabar Cements Ltd - India
- San Jose City I Power Corp, Philippines
- London Commodity Brokers - England
- Interocean Group of Companies - India
- Heidelberg Cement - Germany
- Krishnapatnam Port Company Ltd. - India
- Baramulti Group, Indonesia
- Economic Council, Georgia
- New Zealand Coal & Carbon
- Gujarat Sidhee Cement - India
- GN Power Mariveles Coal Plant, Philippines
- Straits Asia Resources Limited - Singapore
- Semirara Mining Corp, Philippines
- Sojitz Corporation - Japan
- Global Green Power PLC Corporation, Philippines
- Wood Mackenzie - Singapore
- Georgia Ports Authority, United States
- Aboitiz Power Corporation - Philippines
- Kideco Jaya Agung - Indonesia
- Standard Chartered Bank - UAE
- Kepco SPC Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- GVK Power & Infra Limited - India
- Chettinad Cement Corporation Ltd - India
- Makarim & Taira - Indonesia
- Videocon Industries ltd - India
- European Bulk Services B.V. - Netherlands
- OPG Power Generation Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Grasim Industreis Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Bukit Baiduri Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Altura Mining Limited, Indonesia
- Ministry of Transport, Egypt
- Power Finance Corporation Ltd., India
- Karaikal Port Pvt Ltd - India
- Romanian Commodities Exchange
- Indogreen Group - Indonesia
- Sarangani Energy Corporation, Philippines
- Siam City Cement - Thailand
- CNBM International Corporation - China
- Bulk Trading Sa - Switzerland
- Mercator Lines Limited - India
- Ambuja Cements Ltd - India
- PNOC Exploration Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- Central Java Power - Indonesia
- Indian Oil Corporation Limited
- Africa Commodities Group - South Africa
- Sindya Power Generating Company Private Ltd
- Vedanta Resources Plc - India
- Oldendorff Carriers - Singapore
- Mjunction Services Limited - India
- LBH Netherlands Bv - Netherlands
- Global Coal Blending Company Limited - Australia
- Alfred C Toepfer International GmbH - Germany
- Sree Jayajothi Cements Limited - India
- Trasteel International SA, Italy
- Salva Resources Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Coal and Oil Company - UAE
- The University of Queensland
- Jaiprakash Power Ventures ltd
- Leighton Contractors Pty Ltd - Australia
- MS Steel International - UAE
- Chamber of Mines of South Africa
- Central Electricity Authority - India
- Banpu Public Company Limited - Thailand
- Barasentosa Lestari - Indonesia
- Australian Coal Association
- Renaissance Capital - South Africa
- The Treasury - Australian Government
- Wilmar Investment Holdings
- Essar Steel Hazira Ltd - India
- Posco Energy - South Korea
- Petron Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Singapore Mercantile Exchange
- Miang Besar Coal Terminal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indonesian Coal Mining Association
- Rashtriya Ispat Nigam Limited - India
- Larsen & Toubro Limited - India
- CIMB Investment Bank - Malaysia
- Meenaskhi Energy Private Limited - India
- Cement Manufacturers Association - India
- Marubeni Corporation - India
- Port Waratah Coal Services - Australia
- Parliament of New Zealand
- Commonwealth Bank - Australia
- Star Paper Mills Limited - India
- Siam City Cement PLC, Thailand
- Directorate General of MIneral and Coal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Bhatia International Limited - India
- Uttam Galva Steels Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Madhucon Powers Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indika Energy - Indonesia
- South Luzon Thermal Energy Corporation
- Orica Mining Services - Indonesia
- Planning Commission, India
- Asmin Koalindo Tuhup - Indonesia
- Indian Energy Exchange, India
- Ceylon Electricity Board - Sri Lanka
- Globalindo Alam Lestari - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Tata Chemicals Ltd - India
- Coalindo Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Rio Tinto Coal - Australia
- Aditya Birla Group - India
- Maheswari Brothers Coal Limited - India
- IEA Clean Coal Centre - UK
- Bukit Asam (Persero) Tbk - Indonesia
- Indo Tambangraya Megah - Indonesia
- ASAPP Information Group - India
- Vijayanagar Sugar Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Bukit Makmur.PT - Indonesia
- Sakthi Sugars Limited - India
- Price Waterhouse Coopers - Russia
- Energy Development Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Ind-Barath Power Infra Limited - India
- Bhoruka Overseas - Indonesia
- Attock Cement Pakistan Limited
- Petrochimia International Co. Ltd.- Taiwan
- GMR Energy Limited - India
- Thai Mozambique Logistica
- TeaM Sual Corporation - Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Lanco Infratech Ltd - India
- Sical Logistics Limited - India
- Kartika Selabumi Mining - Indonesia
- Eastern Energy - Thailand
- Independent Power Producers Association of India
- Holcim Trading Pte Ltd - Singapore
- Edison Trading Spa - Italy
- Anglo American - United Kingdom
- Gujarat Electricity Regulatory Commission - India
- Riau Bara Harum - Indonesia
- Australian Commodity Traders Exchange
- Binh Thuan Hamico - Vietnam
- Samtan Co., Ltd - South Korea
- Simpson Spence & Young - Indonesia
- SMC Global Power, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Dalmia Cement Bharat India
- India Bulls Power Limited - India
- International Coal Ventures Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Toyota Tsusho Corporation, Japan
- Agrawal Coal Company - India
- Energy Link Ltd, New Zealand
- Deloitte Consulting - India
- Medco Energi Mining Internasional
- IHS Mccloskey Coal Group - USA
- SMG Consultants - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Borneo Indobara - Indonesia
- Bhushan Steel Limited - India
- Goldman Sachs - Singapore
- Carbofer General Trading SA - India
- Meralco Power Generation, Philippines
|
| |
| |
|
