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.
|
|
Sunday, 13 December 20
LONGSTANDING DOWNSIDE RISKS TO TRADE OUTLOOK - BALTIC EXCHANGE
The OECD has attempted to put a positive spin on the trade message emanating from its latest economic outlook, released last week.
The ...
Sunday, 13 December 20
INDONESIA COAL OUTPUT AT 514 MILLION TONNES THIS YEAR, 2021 TARGET UNCHANGED - REUTERS
Indonesia coal output in the period to Dec. 10 stood at 514.2 million tonnes, official data from the energy ministry’s website showed.
&n ...
Thursday, 10 December 20
MALAYSIA'S CIMB ANNOUNCES COAL FINANCING PHASE-OUT BY 2040 AS ASIA'S FOSSIL FUEL DIVESTMENT DRIVE ACCELERATES - IEEFA
The first emerging markets bank to announce a progressive coal exit policy
Malaysia’s CIMB Group Holdings (CIMB) has announced ...
Wednesday, 09 December 20
MARKET INSIGHT - INTERMODAL
Heading towards the end of a difficult year and with the entire planet under the shadow of the covid-19 virus, it is interesting to proceed with a ...
Tuesday, 08 December 20
MARKET ANALYSIS - ALLIED SHIPPING
It is now undisputed that oil consumption for 2020 will post a considerable drop, as demand for several petroleum products has plummeted since the ...
|
|
|
Showing 711 to 715 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Ministry of Finance - Indonesia
- Globalindo Alam Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Holcim Trading Pte Ltd - Singapore
- Posco Energy - South Korea
- Kobexindo Tractors - Indoneisa
- Heidelberg Cement - Germany
- OPG Power Generation Pvt Ltd - India
- Siam City Cement - Thailand
- Kepco SPC Power Corporation, Philippines
- Grasim Industreis Ltd - India
- SMC Global Power, Philippines
- Indo Tambangraya Megah - Indonesia
- Rio Tinto Coal - Australia
- Maheswari Brothers Coal Limited - India
- PowerSource Philippines DevCo
- Karaikal Port Pvt Ltd - India
- Bangladesh Power Developement Board
- Binh Thuan Hamico - Vietnam
- IHS Mccloskey Coal Group - USA
- Interocean Group of Companies - India
- Medco Energi Mining Internasional
- Intertek Mineral Services - Indonesia
- Africa Commodities Group - South Africa
- Uttam Galva Steels Limited - India
- Latin American Coal - Colombia
- Therma Luzon, Inc, Philippines
- Gujarat Sidhee Cement - India
- The Treasury - Australian Government
- Mercator Lines Limited - India
- TeaM Sual Corporation - Philippines
- Kartika Selabumi Mining - Indonesia
- Baramulti Group, Indonesia
- Central Electricity Authority - India
- Global Coal Blending Company Limited - Australia
- Eastern Energy - Thailand
- South Luzon Thermal Energy Corporation
- Parry Sugars Refinery, India
- Straits Asia Resources Limited - Singapore
- Metalloyd Limited - United Kingdom
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Rashtriya Ispat Nigam Limited - India
- Siam City Cement PLC, Thailand
- Trasteel International SA, Italy
- Riau Bara Harum - Indonesia
- Chamber of Mines of South Africa
- Port Waratah Coal Services - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Thai Mozambique Logistica
- Bayan Resources Tbk. - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Sree Jayajothi Cements Limited - India
- Marubeni Corporation - India
- Alfred C Toepfer International GmbH - Germany
- Madhucon Powers Ltd - India
- LBH Netherlands Bv - Netherlands
- Orica Mining Services - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Sojitz Corporation - Japan
- McConnell Dowell - Australia
- Attock Cement Pakistan Limited
- Salva Resources Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Renaissance Capital - South Africa
- Chettinad Cement Corporation Ltd - India
- Merrill Lynch Commodities Europe
- Toyota Tsusho Corporation, Japan
- Indika Energy - Indonesia
- Coal and Oil Company - UAE
- Goldman Sachs - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Mercuria Energy - Indonesia
- Bhushan Steel Limited - India
- Agrawal Coal Company - India
- VISA Power Limited - India
- Indian Energy Exchange, India
- Bahari Cakrawala Sebuku - Indonesia
- Borneo Indobara - Indonesia
- PNOC Exploration Corporation - Philippines
- Aditya Birla Group - India
- IEA Clean Coal Centre - UK
- The University of Queensland
- Barasentosa Lestari - Indonesia
- Ind-Barath Power Infra Limited - India
- Kideco Jaya Agung - Indonesia
- Videocon Industries ltd - India
- Jaiprakash Power Ventures ltd
- Semirara Mining Corp, Philippines
- Mjunction Services Limited - India
- Sindya Power Generating Company Private Ltd
- Ambuja Cements Ltd - India
- International Coal Ventures Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Ministry of Transport, Egypt
- Larsen & Toubro Limited - India
- Petron Corporation, Philippines
- Bhatia International Limited - India
- CIMB Investment Bank - Malaysia
- Jorong Barutama Greston.PT - Indonesia
- Thiess Contractors Indonesia
- Savvy Resources Ltd - HongKong
- Cigading International Bulk Terminal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Directorate Of Revenue Intelligence - India
- Jindal Steel & Power Ltd - India
- Altura Mining Limited, Indonesia
- Singapore Mercantile Exchange
- Gujarat Electricity Regulatory Commission - India
- Economic Council, Georgia
- Kumho Petrochemical, South Korea
- Miang Besar Coal Terminal - Indonesia
- Parliament of New Zealand
- Petrochimia International Co. Ltd.- Taiwan
- Mintek Dendrill Indonesia
- Iligan Light & Power Inc, Philippines
- Vizag Seaport Private Limited - India
- Meenaskhi Energy Private Limited - India
- Energy Development Corp, Philippines
- Vedanta Resources Plc - India
- Australian Coal Association
- Malabar Cements Ltd - India
- Standard Chartered Bank - UAE
- ICICI Bank Limited - India
- Coalindo Energy - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Cement Manufacturers Association - India
- Timah Investasi Mineral - Indoneisa
- The State Trading Corporation of India Ltd
- Pendopo Energi Batubara - Indonesia
- Minerals Council of Australia
- SMG Consultants - Indonesia
- PTC India Limited - India
- Billiton Holdings Pty Ltd - Australia
- Electricity Authority, New Zealand
- Sical Logistics Limited - India
- Romanian Commodities Exchange
- San Jose City I Power Corp, Philippines
- Planning Commission, India
- European Bulk Services B.V. - Netherlands
- MS Steel International - UAE
- Directorate General of MIneral and Coal - Indonesia
- India Bulls Power Limited - India
- Xindia Steels Limited - India
- Australian Commodity Traders Exchange
- Lanco Infratech Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Electricity Generating Authority of Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Essar Steel Hazira Ltd - India
- Manunggal Multi Energi - Indonesia
- Tamil Nadu electricity Board
- GAC Shipping (India) Pvt Ltd
- Coastal Gujarat Power Limited - India
- GVK Power & Infra Limited - India
- Independent Power Producers Association of India
- Dalmia Cement Bharat India
- Deloitte Consulting - India
- Kohat Cement Company Ltd. - Pakistan
- Kaltim Prima Coal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Meralco Power Generation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Energy Link Ltd, New Zealand
- Aboitiz Power Corporation - Philippines
- Bhoruka Overseas - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Wilmar Investment Holdings
- Wood Mackenzie - Singapore
- Makarim & Taira - Indonesia
- CNBM International Corporation - China
- Tata Chemicals Ltd - India
- Ministry of Mines - Canada
- Indonesian Coal Mining Association
- Oldendorff Carriers - Singapore
- Sinarmas Energy and Mining - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- White Energy Company Limited
- Sakthi Sugars Limited - India
- ASAPP Information Group - India
- Bharathi Cement Corporation - India
- Price Waterhouse Coopers - Russia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Georgia Ports Authority, United States
- Kapuas Tunggal Persada - Indonesia
- Orica Australia Pty. Ltd.
- London Commodity Brokers - England
- Antam Resourcindo - Indonesia
- Bukit Baiduri Energy - Indonesia
- Anglo American - United Kingdom
- Karbindo Abesyapradhi - Indoneisa
- Simpson Spence & Young - Indonesia
- Indogreen Group - Indonesia
- New Zealand Coal & Carbon
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Banpu Public Company Limited - Thailand
- Asmin Koalindo Tuhup - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Bank of Tokyo Mitsubishi UFJ Ltd
- Eastern Coal Council - USA
- Bulk Trading Sa - Switzerland
- Leighton Contractors Pty Ltd - Australia
- SN Aboitiz Power Inc, Philippines
- Commonwealth Bank - Australia
- Carbofer General Trading SA - India
- Star Paper Mills Limited - India
- Bukit Makmur.PT - Indonesia
- GMR Energy Limited - India
- Sarangani Energy Corporation, Philippines
- Power Finance Corporation Ltd., India
- Samtan Co., Ltd - South Korea
- Indian Oil Corporation Limited
- Edison Trading Spa - Italy
- Central Java Power - Indonesia
- Global Business Power Corporation, Philippines
|
| |
| |
|
