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, 21 January 21
LNG MARKET RIDING HIGH, BUT WILL THE GAINS CONTINUE? - DREWRY
The LNG market started 2021 on a high note with Asian spot prices crossing $30 per MMBtu while LNG shipping rates recorded a high $350k per day due ...
Thursday, 21 January 21
CHINA'S SPOT THERMAL COAL PRICES REFRESH RECORD HIGH - MYSTEEL
Despite the moderate rebound in temperatures across most regions of China after late December’s deep-freeze, thermal coal prices in the count ...
Wednesday, 20 January 21
CORONAVIRUS OUTBREAK IN HEBEI HAS LIMITED IMPACT ON CHINA'S STEEL INDUSTRY - FITCH RATINGS
The recent Covid-19 outbreak in the steel producing hub Hebei will not have material impact on China’s steel industry, Fitch Ratings says.
...
Wednesday, 20 January 21
MARKET INSIGHT - INTERMODAL
While 2020 is finally behind us, its negative impacts are still hovering over the shipping market. That being said, it is still too early to even s ...
Saturday, 16 January 21
SEABORNE TRADE IN STEAM COAL DECREASED BY 11.6% FROM 937 MILLION TONNES IN 2019 TO 828 MILLION TONNES IN 2020 - COAL IMPORTERS ASSOCIATION, GERMANY
According to preliminary calculations by the German Coal Importers Association (Verein der Kohlenimporteure e. V.), global hard coal production dec ...
|
|
|
Showing 661 to 665 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GN Power Mariveles Coal Plant, Philippines
- Makarim & Taira - Indonesia
- Karaikal Port Pvt Ltd - India
- Grasim Industreis Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indogreen Group - Indonesia
- Banpu Public Company Limited - Thailand
- Manunggal Multi Energi - Indonesia
- GVK Power & Infra Limited - India
- Planning Commission, India
- GMR Energy Limited - India
- Miang Besar Coal Terminal - Indonesia
- Salva Resources Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- London Commodity Brokers - England
- Africa Commodities Group - South Africa
- Timah Investasi Mineral - Indoneisa
- Asmin Koalindo Tuhup - Indonesia
- Petron Corporation, Philippines
- Latin American Coal - Colombia
- Central Java Power - Indonesia
- Bhushan Steel Limited - India
- Kapuas Tunggal Persada - Indonesia
- Merrill Lynch Commodities Europe
- Semirara Mining Corp, Philippines
- Therma Luzon, Inc, Philippines
- Antam Resourcindo - Indonesia
- Bhatia International Limited - India
- Anglo American - United Kingdom
- Maheswari Brothers Coal Limited - India
- Wilmar Investment Holdings
- Siam City Cement - Thailand
- IHS Mccloskey Coal Group - USA
- Lanco Infratech Ltd - India
- Bukit Baiduri Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Chettinad Cement Corporation Ltd - India
- Directorate Of Revenue Intelligence - India
- ASAPP Information Group - India
- Mercuria Energy - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Ind-Barath Power Infra Limited - India
- Kaltim Prima Coal - Indonesia
- Thiess Contractors Indonesia
- Leighton Contractors Pty Ltd - Australia
- Singapore Mercantile Exchange
- Oldendorff Carriers - Singapore
- Energy Link Ltd, New Zealand
- Simpson Spence & Young - Indonesia
- Price Waterhouse Coopers - Russia
- Ambuja Cements Ltd - India
- Meenaskhi Energy Private Limited - India
- Eastern Coal Council - USA
- South Luzon Thermal Energy Corporation
- Australian Coal Association
- Kepco SPC Power Corporation, Philippines
- Uttam Galva Steels Limited - India
- Dalmia Cement Bharat India
- PowerSource Philippines DevCo
- AsiaOL BioFuels Corp., Philippines
- IEA Clean Coal Centre - UK
- Central Electricity Authority - India
- OPG Power Generation Pvt Ltd - India
- Coal and Oil Company - UAE
- Agrawal Coal Company - India
- Cement Manufacturers Association - India
- Savvy Resources Ltd - HongKong
- Posco Energy - South Korea
- Vijayanagar Sugar Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Indonesian Coal Mining Association
- GAC Shipping (India) Pvt Ltd
- Electricity Generating Authority of Thailand
- Mjunction Services Limited - India
- ICICI Bank Limited - India
- Indian Energy Exchange, India
- Sree Jayajothi Cements Limited - India
- Renaissance Capital - South Africa
- McConnell Dowell - Australia
- Aboitiz Power Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Heidelberg Cement - Germany
- Neyveli Lignite Corporation Ltd, - India
- Aditya Birla Group - India
- Sinarmas Energy and Mining - Indonesia
- Rio Tinto Coal - Australia
- The University of Queensland
- Trasteel International SA, Italy
- Australian Commodity Traders Exchange
- India Bulls Power Limited - India
- Commonwealth Bank - Australia
- Semirara Mining and Power Corporation, Philippines
- Videocon Industries ltd - India
- Goldman Sachs - Singapore
- Vedanta Resources Plc - India
- Global Green Power PLC Corporation, Philippines
- Medco Energi Mining Internasional
- Sojitz Corporation - Japan
- Jaiprakash Power Ventures ltd
- Intertek Mineral Services - Indonesia
- Kumho Petrochemical, South Korea
- Bahari Cakrawala Sebuku - Indonesia
- Edison Trading Spa - Italy
- PTC India Limited - India
- Energy Development Corp, Philippines
- Riau Bara Harum - Indonesia
- Meralco Power Generation, Philippines
- Interocean Group of Companies - India
- Attock Cement Pakistan Limited
- Global Business Power Corporation, Philippines
- Carbofer General Trading SA - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Directorate General of MIneral and Coal - Indonesia
- Coalindo Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Binh Thuan Hamico - Vietnam
- Bharathi Cement Corporation - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Parry Sugars Refinery, India
- The State Trading Corporation of India Ltd
- Minerals Council of Australia
- Bulk Trading Sa - Switzerland
- LBH Netherlands Bv - Netherlands
- Larsen & Toubro Limited - India
- Bukit Makmur.PT - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Wood Mackenzie - Singapore
- Electricity Authority, New Zealand
- Mintek Dendrill Indonesia
- Alfred C Toepfer International GmbH - Germany
- Kobexindo Tractors - Indoneisa
- Maharashtra Electricity Regulatory Commission - India
- Tata Chemicals Ltd - India
- PNOC Exploration Corporation - Philippines
- Star Paper Mills Limited - India
- Bangladesh Power Developement Board
- Sarangani Energy Corporation, Philippines
- Malabar Cements Ltd - India
- Indian Oil Corporation Limited
- European Bulk Services B.V. - Netherlands
- Ministry of Mines - Canada
- Sical Logistics Limited - India
- Samtan Co., Ltd - South Korea
- New Zealand Coal & Carbon
- Indika Energy - Indonesia
- Xindia Steels Limited - India
- Toyota Tsusho Corporation, Japan
- Marubeni Corporation - India
- Karbindo Abesyapradhi - Indoneisa
- Barasentosa Lestari - Indonesia
- Indo Tambangraya Megah - Indonesia
- Bayan Resources Tbk. - Indonesia
- Sindya Power Generating Company Private Ltd
- Kartika Selabumi Mining - Indonesia
- Jindal Steel & Power Ltd - India
- Sakthi Sugars Limited - India
- White Energy Company Limited
- Siam City Cement PLC, Thailand
- The Treasury - Australian Government
- Standard Chartered Bank - UAE
- SMG Consultants - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Borneo Indobara - Indonesia
- Georgia Ports Authority, United States
- Altura Mining Limited, Indonesia
- San Jose City I Power Corp, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Petrochimia International Co. Ltd.- Taiwan
- Globalindo Alam Lestari - Indonesia
- Eastern Energy - Thailand
- Gujarat Electricity Regulatory Commission - India
- VISA Power Limited - India
- Metalloyd Limited - United Kingdom
- Port Waratah Coal Services - Australia
- CNBM International Corporation - China
- Economic Council, Georgia
- Orica Australia Pty. Ltd.
- Essar Steel Hazira Ltd - India
- Tamil Nadu electricity Board
- Vizag Seaport Private Limited - India
- Madhucon Powers Ltd - India
- Ministry of Finance - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Formosa Plastics Group - Taiwan
- Global Coal Blending Company Limited - Australia
- Chamber of Mines of South Africa
- Ministry of Transport, Egypt
- Kohat Cement Company Ltd. - Pakistan
- Parliament of New Zealand
- Bhoruka Overseas - Indonesia
- Mercator Lines Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- CIMB Investment Bank - Malaysia
- Kalimantan Lumbung Energi - Indonesia
- Pendopo Energi Batubara - Indonesia
- International Coal Ventures Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- TeaM Sual Corporation - Philippines
- Power Finance Corporation Ltd., India
- Thai Mozambique Logistica
- MS Steel International - UAE
- Independent Power Producers Association of India
- Kideco Jaya Agung - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Gujarat Sidhee Cement - India
- Romanian Commodities Exchange
- Orica Mining Services - Indonesia
- Coastal Gujarat Power Limited - India
- Straits Asia Resources Limited - Singapore
- Deloitte Consulting - India
- SMC Global Power, Philippines
- Baramulti Group, Indonesia
- Rashtriya Ispat Nigam Limited - India
|
| |
| |
|
