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, 16 December 20
INDONESIAN COAL RECOVERING - FITCH
Commenting on Indonesian coal, Fitch Ratings, the Indonesian 4,200 kcal index has begun to recover, improving to over USD 29 in November compared t ...
Tuesday, 15 December 20
NEWCASTLE PRICES RECOVER - FITCH
Prices for the benchmark Newcastle 6,000 kcal/kg grade coal have rebounded to over USD 70/tonne since late November as major Asian economies ease l ...
Tuesday, 15 December 20
APAC COAL PRICES REBOUND ON IMPROVED DEMAND AND SUPPLY CUTS - FITCH RATINGS
Prices for the benchmark Newcastle 6,000kcal/kg grade coal have rebounded to over USD70/tonne since late November as major Asian economies ease loc ...
Tuesday, 15 December 20
CHINA EXTENDS FULL OPEN GESTURE TO IMPORTED COAL EXCEPT FOR AUSTRALIA - GLOBAL TIMES
Domestic, overseas suppliers will take up share with easier clearance
China's top economic planner on Saturday gave approval to ...
Monday, 14 December 20
PHILIPPINE BANK RCBC TO STOP LENDING FOR NEW COAL-FIRED POWER PROJECTS - MANILA BULLETIN
Yuchengco-led Rizal Commercial Banking Corporation (RCBC) has forthrightly declared that it will no longer extend financing to new coal-fired power ...
|
|
|
Showing 706 to 710 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- McConnell Dowell - Australia
- Bhatia International Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Anglo American - United Kingdom
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- CNBM International Corporation - China
- Bayan Resources Tbk. - Indonesia
- Mercuria Energy - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Savvy Resources Ltd - HongKong
- Borneo Indobara - Indonesia
- SN Aboitiz Power Inc, Philippines
- Wood Mackenzie - Singapore
- Siam City Cement PLC, Thailand
- PTC India Limited - India
- Indogreen Group - Indonesia
- Grasim Industreis Ltd - India
- Ministry of Transport, Egypt
- Kartika Selabumi Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- Lanco Infratech Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Mjunction Services Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Sindya Power Generating Company Private Ltd
- Toyota Tsusho Corporation, Japan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- New Zealand Coal & Carbon
- Central Electricity Authority - India
- Krishnapatnam Port Company Ltd. - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sojitz Corporation - Japan
- South Luzon Thermal Energy Corporation
- Petrochimia International Co. Ltd.- Taiwan
- Ministry of Mines - Canada
- Medco Energi Mining Internasional
- Attock Cement Pakistan Limited
- Sree Jayajothi Cements Limited - India
- Semirara Mining Corp, Philippines
- Metalloyd Limited - United Kingdom
- GAC Shipping (India) Pvt Ltd
- CIMB Investment Bank - Malaysia
- Madhucon Powers Ltd - India
- Planning Commission, India
- Globalindo Alam Lestari - Indonesia
- Parry Sugars Refinery, India
- Pipit Mutiara Jaya. PT, Indonesia
- Billiton Holdings Pty Ltd - Australia
- Miang Besar Coal Terminal - Indonesia
- Jindal Steel & Power Ltd - India
- Africa Commodities Group - South Africa
- Standard Chartered Bank - UAE
- Bharathi Cement Corporation - India
- Essar Steel Hazira Ltd - India
- Orica Mining Services - Indonesia
- Port Waratah Coal Services - Australia
- Cement Manufacturers Association - India
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Baiduri Energy - Indonesia
- Trasteel International SA, Italy
- PetroVietnam Power Coal Import and Supply Company
- Eastern Coal Council - USA
- Malabar Cements Ltd - India
- GVK Power & Infra Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Directorate Of Revenue Intelligence - India
- PowerSource Philippines DevCo
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bhoruka Overseas - Indonesia
- Carbofer General Trading SA - India
- GMR Energy Limited - India
- Iligan Light & Power Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Siam City Cement - Thailand
- Central Java Power - Indonesia
- Gujarat Sidhee Cement - India
- Eastern Energy - Thailand
- Meenaskhi Energy Private Limited - India
- Coal and Oil Company - UAE
- Energy Development Corp, Philippines
- Parliament of New Zealand
- Kobexindo Tractors - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bulk Trading Sa - Switzerland
- Coalindo Energy - Indonesia
- SMC Global Power, Philippines
- Aditya Birla Group - India
- Chamber of Mines of South Africa
- Formosa Plastics Group - Taiwan
- Larsen & Toubro Limited - India
- Jaiprakash Power Ventures ltd
- Ceylon Electricity Board - Sri Lanka
- Renaissance Capital - South Africa
- Merrill Lynch Commodities Europe
- Orica Australia Pty. Ltd.
- Kohat Cement Company Ltd. - Pakistan
- Binh Thuan Hamico - Vietnam
- Interocean Group of Companies - India
- Bhushan Steel Limited - India
- Australian Coal Association
- Semirara Mining and Power Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Power Finance Corporation Ltd., India
- Maheswari Brothers Coal Limited - India
- Rashtriya Ispat Nigam Limited - India
- Kaltim Prima Coal - Indonesia
- Karaikal Port Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Kumho Petrochemical, South Korea
- Samtan Co., Ltd - South Korea
- Sakthi Sugars Limited - India
- ICICI Bank Limited - India
- ASAPP Information Group - India
- Uttam Galva Steels Limited - India
- Sical Logistics Limited - India
- Georgia Ports Authority, United States
- Indika Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Electricity Authority, New Zealand
- Ambuja Cements Ltd - India
- Indian Oil Corporation Limited
- Deloitte Consulting - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Timah Investasi Mineral - Indoneisa
- Therma Luzon, Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- Kapuas Tunggal Persada - Indonesia
- Indonesian Coal Mining Association
- Energy Link Ltd, New Zealand
- Sinarmas Energy and Mining - Indonesia
- The University of Queensland
- Kalimantan Lumbung Energi - Indonesia
- Global Green Power PLC Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Bangladesh Power Developement Board
- Commonwealth Bank - Australia
- Wilmar Investment Holdings
- Manunggal Multi Energi - Indonesia
- White Energy Company Limited
- Indian Energy Exchange, India
- Riau Bara Harum - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Cigading International Bulk Terminal - Indonesia
- Heidelberg Cement - Germany
- Simpson Spence & Young - Indonesia
- Marubeni Corporation - India
- Romanian Commodities Exchange
- Barasentosa Lestari - Indonesia
- Star Paper Mills Limited - India
- Global Business Power Corporation, Philippines
- Tamil Nadu electricity Board
- Electricity Generating Authority of Thailand
- Karbindo Abesyapradhi - Indoneisa
- Antam Resourcindo - Indonesia
- Independent Power Producers Association of India
- Chettinad Cement Corporation Ltd - India
- Bukit Makmur.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- Xindia Steels Limited - India
- Ind-Barath Power Infra Limited - India
- European Bulk Services B.V. - Netherlands
- Straits Asia Resources Limited - Singapore
- Thai Mozambique Logistica
- Goldman Sachs - Singapore
- Mintek Dendrill Indonesia
- Singapore Mercantile Exchange
- Banpu Public Company Limited - Thailand
- Jorong Barutama Greston.PT - Indonesia
- Coastal Gujarat Power Limited - India
- Alfred C Toepfer International GmbH - Germany
- Edison Trading Spa - Italy
- Oldendorff Carriers - Singapore
- Vizag Seaport Private Limited - India
- LBH Netherlands Bv - Netherlands
- SMG Consultants - Indonesia
- Agrawal Coal Company - India
- Pendopo Energi Batubara - Indonesia
- IEA Clean Coal Centre - UK
- Altura Mining Limited, Indonesia
- The Treasury - Australian Government
- India Bulls Power Limited - India
- Latin American Coal - Colombia
- Leighton Contractors Pty Ltd - Australia
- Ministry of Finance - Indonesia
- Aboitiz Power Corporation - Philippines
- Thiess Contractors Indonesia
- London Commodity Brokers - England
- Vedanta Resources Plc - India
- MS Steel International - UAE
- Mercator Lines Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Intertek Mineral Services - Indonesia
- Indo Tambangraya Megah - Indonesia
- VISA Power Limited - India
- Videocon Industries ltd - India
- Australian Commodity Traders Exchange
- Tata Chemicals Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Makarim & Taira - Indonesia
- Salva Resources Pvt Ltd - India
- Posco Energy - South Korea
- Meralco Power Generation, Philippines
- Price Waterhouse Coopers - Russia
- The State Trading Corporation of India Ltd
- Directorate General of MIneral and Coal - Indonesia
- Dalmia Cement Bharat India
- Baramulti Group, Indonesia
- TeaM Sual Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Minerals Council of Australia
- Asmin Koalindo Tuhup - Indonesia
- OPG Power Generation Pvt Ltd - India
- Petron Corporation, Philippines
- Economic Council, Georgia
- Rio Tinto Coal - Australia
|
| |
| |
|
