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.
|
|
Monday, 21 December 20
A REBOUND IN GLOBAL COAL DEMAND IN 2021 IS SET TO BE SHORT-LIVED, BUT NO IMMEDIATE DECLINE IN SIGHT - IEA
After a major drop in recent years, global coal demand is forecast to rise by 2.6% in 2021 before flattening out to 2025
A global ec ...
Friday, 18 December 20
AUSTRALIA PM WARNS OF ‘LOSE-LOSE’ IN ANY CHINA COAL SHIFT - REUTERS
Australian Prime Minister Scott Morrison said any shift by China away from importing high quality Australian coal would be a “lose-lose&rdquo ...
Friday, 18 December 20
BIG OIL AND COAL EXPORTERS FACE RECKONING AS PARIS AGREEMENT TURNS FIVE - CNA
On Dec 12, more than 70 global leaders came together at the UN’s Climate Ambition Summit, marking the fifth anniversary of the Paris Agreemen ...
Friday, 18 December 20
SOUTH AFRICAN COAL EXPORTERS LARGELY DEPENDENT ON THE ASIAN MARKETS - BANCHERO COSTA
South Africa is the fourth largest exporter of coal in the world, after Australia, Indonesia and Russia. In calendar 2019 the country exported a to ...
Thursday, 17 December 20
CHINA'S BAN IS LESS OF A THREAT TO AUSTRALIA'S COAL INDUSTRY THAN INTERNATIONAL CLIMATE AMBITION - IEEFA
Australian coal exporters will survive this near-term political fight but there are longterm structural headwinds
The decision by Ch ...
|
|
|
Showing 696 to 700 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- South Luzon Thermal Energy Corporation
- Mintek Dendrill Indonesia
- Energy Link Ltd, New Zealand
- Leighton Contractors Pty Ltd - Australia
- Meenaskhi Energy Private Limited - India
- Parliament of New Zealand
- Semirara Mining Corp, Philippines
- Thai Mozambique Logistica
- IHS Mccloskey Coal Group - USA
- Sical Logistics Limited - India
- Electricity Generating Authority of Thailand
- Antam Resourcindo - Indonesia
- The Treasury - Australian Government
- Kaltim Prima Coal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Aboitiz Power Corporation - Philippines
- ICICI Bank Limited - India
- Madhucon Powers Ltd - India
- Cement Manufacturers Association - India
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Jindal Steel & Power Ltd - India
- Ambuja Cements Ltd - India
- Indo Tambangraya Megah - Indonesia
- Eastern Energy - Thailand
- San Jose City I Power Corp, Philippines
- Australian Commodity Traders Exchange
- Kobexindo Tractors - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SN Aboitiz Power Inc, Philippines
- White Energy Company Limited
- Offshore Bulk Terminal Pte Ltd, Singapore
- Heidelberg Cement - Germany
- Semirara Mining and Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sojitz Corporation - Japan
- Thiess Contractors Indonesia
- Intertek Mineral Services - Indonesia
- Georgia Ports Authority, United States
- Medco Energi Mining Internasional
- Posco Energy - South Korea
- Timah Investasi Mineral - Indoneisa
- Salva Resources Pvt Ltd - India
- Africa Commodities Group - South Africa
- McConnell Dowell - Australia
- Bharathi Cement Corporation - India
- PetroVietnam Power Coal Import and Supply Company
- Siam City Cement PLC, Thailand
- PNOC Exploration Corporation - Philippines
- Indogreen Group - Indonesia
- Coastal Gujarat Power Limited - India
- Eastern Coal Council - USA
- Uttam Galva Steels Limited - India
- Alfred C Toepfer International GmbH - Germany
- Latin American Coal - Colombia
- Baramulti Group, Indonesia
- Central Java Power - Indonesia
- New Zealand Coal & Carbon
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Toyota Tsusho Corporation, Japan
- Savvy Resources Ltd - HongKong
- India Bulls Power Limited - India
- Therma Luzon, Inc, Philippines
- Romanian Commodities Exchange
- Karaikal Port Pvt Ltd - India
- Orica Mining Services - Indonesia
- Interocean Group of Companies - India
- Central Electricity Authority - India
- MS Steel International - UAE
- Kohat Cement Company Ltd. - Pakistan
- Billiton Holdings Pty Ltd - Australia
- SMG Consultants - Indonesia
- GAC Shipping (India) Pvt Ltd
- Star Paper Mills Limited - India
- Sakthi Sugars Limited - India
- Manunggal Multi Energi - Indonesia
- Renaissance Capital - South Africa
- GVK Power & Infra Limited - India
- Maheswari Brothers Coal Limited - India
- Mercuria Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Karbindo Abesyapradhi - Indoneisa
- Bayan Resources Tbk. - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Indian Oil Corporation Limited
- Makarim & Taira - Indonesia
- Bukit Makmur.PT - Indonesia
- Energy Development Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Straits Asia Resources Limited - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Oldendorff Carriers - Singapore
- Metalloyd Limited - United Kingdom
- Global Business Power Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Singapore Mercantile Exchange
- Formosa Plastics Group - Taiwan
- Cigading International Bulk Terminal - Indonesia
- PTC India Limited - India
- Pendopo Energi Batubara - Indonesia
- Coalindo Energy - Indonesia
- Indonesian Coal Mining Association
- Ind-Barath Power Infra Limited - India
- Port Waratah Coal Services - Australia
- TeaM Sual Corporation - Philippines
- Global Coal Blending Company Limited - Australia
- Simpson Spence & Young - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Dalmia Cement Bharat India
- Jaiprakash Power Ventures ltd
- The State Trading Corporation of India Ltd
- Anglo American - United Kingdom
- Ministry of Finance - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Binh Thuan Hamico - Vietnam
- Chamber of Mines of South Africa
- CIMB Investment Bank - Malaysia
- Bhushan Steel Limited - India
- Rio Tinto Coal - Australia
- Merrill Lynch Commodities Europe
- OPG Power Generation Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Gujarat Sidhee Cement - India
- Attock Cement Pakistan Limited
- Altura Mining Limited, Indonesia
- Wilmar Investment Holdings
- Barasentosa Lestari - Indonesia
- Sree Jayajothi Cements Limited - India
- PowerSource Philippines DevCo
- SMC Global Power, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Goldman Sachs - Singapore
- Planning Commission, India
- Minerals Council of Australia
- Global Green Power PLC Corporation, Philippines
- Ministry of Mines - Canada
- Bangladesh Power Developement Board
- Marubeni Corporation - India
- Petron Corporation, Philippines
- VISA Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Lanco Infratech Ltd - India
- Globalindo Alam Lestari - Indonesia
- European Bulk Services B.V. - Netherlands
- Kapuas Tunggal Persada - Indonesia
- Bhatia International Limited - India
- Vizag Seaport Private Limited - India
- London Commodity Brokers - England
- Orica Australia Pty. Ltd.
- Petrochimia International Co. Ltd.- Taiwan
- Deloitte Consulting - India
- Parry Sugars Refinery, India
- Edison Trading Spa - Italy
- Power Finance Corporation Ltd., India
- Indian Energy Exchange, India
- Holcim Trading Pte Ltd - Singapore
- Mjunction Services Limited - India
- Standard Chartered Bank - UAE
- Xindia Steels Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- The University of Queensland
- Mercator Lines Limited - India
- Essar Steel Hazira Ltd - India
- Kepco SPC Power Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- LBH Netherlands Bv - Netherlands
- Grasim Industreis Ltd - India
- Price Waterhouse Coopers - Russia
- Gujarat Electricity Regulatory Commission - India
- Miang Besar Coal Terminal - Indonesia
- IEA Clean Coal Centre - UK
- Indika Energy - Indonesia
- Borneo Indobara - Indonesia
- Malabar Cements Ltd - India
- Bulk Trading Sa - Switzerland
- Economic Council, Georgia
- Tamil Nadu electricity Board
- Kalimantan Lumbung Energi - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Coal and Oil Company - UAE
- Maharashtra Electricity Regulatory Commission - India
- Videocon Industries ltd - India
- CNBM International Corporation - China
- International Coal Ventures Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- GMR Energy Limited - India
- Siam City Cement - Thailand
- Banpu Public Company Limited - Thailand
- Samtan Co., Ltd - South Korea
- Electricity Authority, New Zealand
- Rashtriya Ispat Nigam Limited - India
- Vedanta Resources Plc - India
- Agrawal Coal Company - India
- Meralco Power Generation, Philippines
- Riau Bara Harum - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- ASAPP Information Group - India
- Bhoruka Overseas - Indonesia
- Wood Mackenzie - Singapore
- Kideco Jaya Agung - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Trasteel International SA, Italy
- Australian Coal Association
- Larsen & Toubro Limited - India
- Independent Power Producers Association of India
- Asmin Koalindo Tuhup - Indonesia
- Commonwealth Bank - Australia
- Aditya Birla Group - India
- Sarangani Energy Corporation, Philippines
- Ministry of Transport, Egypt
- Neyveli Lignite Corporation Ltd, - India
- Directorate Of Revenue Intelligence - India
- Kumho Petrochemical, South Korea
- Gujarat Mineral Development Corp Ltd - India
- Tata Chemicals Ltd - India
- Carbofer General Trading SA - India
|
| |
| |
|
