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.
|
|
Wednesday, 07 April 21
MARKET INSIGHT - INTERMODAL
Following the end of the catholic easter, during which the majority of shipping market participants were on holidays, it is interesting to note a f ...
Wednesday, 07 April 21
COAL USED TO GENERATE ELECTRIC POWER IN U.S. WILL INCREASE BY 13 PERCENT TO 495 MMST IN 2021 - EIA
EIA expects U.S. coal production to total 585 MMst in 2021, 46 MMst (9%) more than in 2020. In 2022, EIA expects coal production to grow by an addi ...
Wednesday, 31 March 21
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX UP 0.12 PCT - XINHUA
China Taiyuan coal transaction price index stood at 139.03 points Monday, up 0.12 percent week on week.
The index, released by China ...
Wednesday, 31 March 21
MARKET INSIGHT - INTERMODAL
Over the past week, the biggest story has been the blockage of the Suez Canal, as a result of the grounding of the container ship Ever Given. At th ...
Monday, 29 March 21
MOODY'S: OUTLOOK FOR GLOBAL METALS AND MINING INDUSTRY TURNS POSITIVE ON HIGHER EBITDA IN PANDEMIC'S WAKE
- Demand for steel, iron ore and copper will rise, while aluminum, nickel and zinc will remain in surplus
- EBITDA is expected to ...
|
|
|
Showing 606 to 610 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- AsiaOL BioFuels Corp., Philippines
- Mintek Dendrill Indonesia
- SMC Global Power, Philippines
- Jaiprakash Power Ventures ltd
- Australian Coal Association
- Larsen & Toubro Limited - India
- Aditya Birla Group - India
- PNOC Exploration Corporation - Philippines
- Salva Resources Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Port Waratah Coal Services - Australia
- Petron Corporation, Philippines
- Anglo American - United Kingdom
- White Energy Company Limited
- Maheswari Brothers Coal Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Aboitiz Power Corporation - Philippines
- VISA Power Limited - India
- Billiton Holdings Pty Ltd - Australia
- Medco Energi Mining Internasional
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Global Green Power PLC Corporation, Philippines
- Mercuria Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Manunggal Multi Energi - Indonesia
- Sree Jayajothi Cements Limited - India
- ICICI Bank Limited - India
- Australian Commodity Traders Exchange
- Georgia Ports Authority, United States
- London Commodity Brokers - England
- San Jose City I Power Corp, Philippines
- Formosa Plastics Group - Taiwan
- Meralco Power Generation, Philippines
- Wood Mackenzie - Singapore
- Vedanta Resources Plc - India
- Binh Thuan Hamico - Vietnam
- Gujarat Mineral Development Corp Ltd - India
- South Luzon Thermal Energy Corporation
- Global Business Power Corporation, Philippines
- Riau Bara Harum - Indonesia
- SN Aboitiz Power Inc, Philippines
- Thai Mozambique Logistica
- Metalloyd Limited - United Kingdom
- Kepco SPC Power Corporation, Philippines
- Bharathi Cement Corporation - India
- Latin American Coal - Colombia
- Neyveli Lignite Corporation Ltd, - India
- Holcim Trading Pte Ltd - Singapore
- Gujarat Electricity Regulatory Commission - India
- Central Java Power - Indonesia
- Pendopo Energi Batubara - Indonesia
- Barasentosa Lestari - Indonesia
- Mercator Lines Limited - India
- Globalindo Alam Lestari - Indonesia
- The University of Queensland
- Indian Oil Corporation Limited
- Kohat Cement Company Ltd. - Pakistan
- Mjunction Services Limited - India
- Leighton Contractors Pty Ltd - Australia
- Iligan Light & Power Inc, Philippines
- Romanian Commodities Exchange
- Posco Energy - South Korea
- Sinarmas Energy and Mining - Indonesia
- OPG Power Generation Pvt Ltd - India
- Economic Council, Georgia
- Power Finance Corporation Ltd., India
- Commonwealth Bank - Australia
- PetroVietnam Power Coal Import and Supply Company
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coastal Gujarat Power Limited - India
- Interocean Group of Companies - India
- Bhushan Steel Limited - India
- ASAPP Information Group - India
- IEA Clean Coal Centre - UK
- Electricity Authority, New Zealand
- MS Steel International - UAE
- Essar Steel Hazira Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Attock Cement Pakistan Limited
- Kartika Selabumi Mining - Indonesia
- Indo Tambangraya Megah - Indonesia
- Intertek Mineral Services - Indonesia
- Trasteel International SA, Italy
- Krishnapatnam Port Company Ltd. - India
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Finance - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Alfred C Toepfer International GmbH - Germany
- IHS Mccloskey Coal Group - USA
- Pipit Mutiara Jaya. PT, Indonesia
- European Bulk Services B.V. - Netherlands
- Malabar Cements Ltd - India
- SMG Consultants - Indonesia
- Orica Mining Services - Indonesia
- Agrawal Coal Company - India
- Uttam Galva Steels Limited - India
- LBH Netherlands Bv - Netherlands
- Central Electricity Authority - India
- Chettinad Cement Corporation Ltd - India
- Kaltim Prima Coal - Indonesia
- Deloitte Consulting - India
- Antam Resourcindo - Indonesia
- Ministry of Mines - Canada
- CNBM International Corporation - China
- Africa Commodities Group - South Africa
- Coal and Oil Company - UAE
- GAC Shipping (India) Pvt Ltd
- Dalmia Cement Bharat India
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement PLC, Thailand
- Bayan Resources Tbk. - Indonesia
- Baramulti Group, Indonesia
- Makarim & Taira - Indonesia
- Videocon Industries ltd - India
- Straits Asia Resources Limited - Singapore
- Bukit Baiduri Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- PTC India Limited - India
- Lanco Infratech Ltd - India
- Directorate Of Revenue Intelligence - India
- Sical Logistics Limited - India
- TeaM Sual Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- Eastern Energy - Thailand
- Bangladesh Power Developement Board
- Bukit Asam (Persero) Tbk - Indonesia
- Oldendorff Carriers - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Rio Tinto Coal - Australia
- Parry Sugars Refinery, India
- Bahari Cakrawala Sebuku - Indonesia
- Semirara Mining Corp, Philippines
- Coalindo Energy - Indonesia
- Banpu Public Company Limited - Thailand
- Minerals Council of Australia
- Eastern Coal Council - USA
- Siam City Cement - Thailand
- Ceylon Electricity Board - Sri Lanka
- GMR Energy Limited - India
- Singapore Mercantile Exchange
- McConnell Dowell - Australia
- Heidelberg Cement - Germany
- Therma Luzon, Inc, Philippines
- Kumho Petrochemical, South Korea
- International Coal Ventures Pvt Ltd - India
- Independent Power Producers Association of India
- Grasim Industreis Ltd - India
- Tata Chemicals Ltd - India
- Thiess Contractors Indonesia
- CIMB Investment Bank - Malaysia
- Jorong Barutama Greston.PT - Indonesia
- Parliament of New Zealand
- Goldman Sachs - Singapore
- Marubeni Corporation - India
- Toyota Tsusho Corporation, Japan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bukit Makmur.PT - Indonesia
- Carbofer General Trading SA - India
- Madhucon Powers Ltd - India
- The Treasury - Australian Government
- Vizag Seaport Private Limited - India
- Merrill Lynch Commodities Europe
- Energy Development Corp, Philippines
- Kideco Jaya Agung - Indonesia
- Indika Energy - Indonesia
- Renaissance Capital - South Africa
- Bhoruka Overseas - Indonesia
- Simpson Spence & Young - Indonesia
- Tamil Nadu electricity Board
- Star Paper Mills Limited - India
- Indonesian Coal Mining Association
- Ambuja Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Ind-Barath Power Infra Limited - India
- Sojitz Corporation - Japan
- Bulk Trading Sa - Switzerland
- The State Trading Corporation of India Ltd
- Kapuas Tunggal Persada - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Standard Chartered Bank - UAE
- Ministry of Transport, Egypt
- Semirara Mining and Power Corporation, Philippines
- Sakthi Sugars Limited - India
- Altura Mining Limited, Indonesia
- Cement Manufacturers Association - India
- Timah Investasi Mineral - Indoneisa
- Samtan Co., Ltd - South Korea
- Edison Trading Spa - Italy
- Kobexindo Tractors - Indoneisa
- Bhatia International Limited - India
- Savvy Resources Ltd - HongKong
- Jindal Steel & Power Ltd - India
- Xindia Steels Limited - India
- India Bulls Power Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Indian Energy Exchange, India
- Global Coal Blending Company Limited - Australia
- Orica Australia Pty. Ltd.
- Karaikal Port Pvt Ltd - India
- New Zealand Coal & Carbon
- Borneo Indobara - Indonesia
- GVK Power & Infra Limited - India
- Gujarat Sidhee Cement - India
- Energy Link Ltd, New Zealand
- Meenaskhi Energy Private Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Sarangani Energy Corporation, Philippines
- Chamber of Mines of South Africa
- Wilmar Investment Holdings
- Electricity Generating Authority of Thailand
- PowerSource Philippines DevCo
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indogreen Group - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Planning Commission, India
|
| |
| |
|
