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, 21 October 20
MARKET INSIGHT - INTERMODAL
The second wave of COVID-19 is now a reality; offices are closing again, and stricter rules and regulations are being implemented in public spaces. ...
Tuesday, 20 October 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX UP 0.82 PCT - XINHUA
China Taiyuan coal transaction price index stood at 127.49 points Monday, up 0.82 percent week on week.
The index, released by China ...
Tuesday, 20 October 20
BIMCO 'SHIPLEASE' TERM SHEET - WATSON FARLEY & WILLIAMS
KNOWLEDGE TO ELEVATE
The ever-growing importance of sale and leaseback transactions as an alternative to financing ships by way of loan, makes ...
Friday, 16 October 20
KOMIPO ON BEHALF OF K GENCO'S INVITED BIDS FOR TOTAL 715,000 MT MIN. 5,700 NAR COAL FOR DECEMBER
COALspot.com: Korea Midland Power Co., Ltd (KOMIPO) on behalf of EWP, KOSPO, KOSEP and KOWEPO has issued an international tender for total 715,000& ...
Wednesday, 14 October 20
CHINA COKING COAL FUTURES RALLY ON REPORTED BAN ON AUSTRALIA CARGOES - REUTERS
Dalian coking coal futures rallied for a sixth straight session on Tuesday after reports surfaced that China had stopped buying coal from Australia ...
|
|
|
Showing 756 to 760 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Banpu Public Company Limited - Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sakthi Sugars Limited - India
- Holcim Trading Pte Ltd - Singapore
- Straits Asia Resources Limited - Singapore
- Bulk Trading Sa - Switzerland
- Vijayanagar Sugar Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Indian Energy Exchange, India
- SMG Consultants - Indonesia
- Leighton Contractors Pty Ltd - Australia
- IEA Clean Coal Centre - UK
- Sree Jayajothi Cements Limited - India
- Altura Mining Limited, Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Indonesian Coal Mining Association
- Meenaskhi Energy Private Limited - India
- Latin American Coal - Colombia
- European Bulk Services B.V. - Netherlands
- Jindal Steel & Power Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Bangladesh Power Developement Board
- San Jose City I Power Corp, Philippines
- Electricity Generating Authority of Thailand
- Makarim & Taira - Indonesia
- SMC Global Power, Philippines
- Gujarat Electricity Regulatory Commission - India
- Karbindo Abesyapradhi - Indoneisa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mercuria Energy - Indonesia
- Deloitte Consulting - India
- Maharashtra Electricity Regulatory Commission - India
- Cement Manufacturers Association - India
- Siam City Cement - Thailand
- Bharathi Cement Corporation - India
- Simpson Spence & Young - Indonesia
- Bayan Resources Tbk. - Indonesia
- Ind-Barath Power Infra Limited - India
- Bhushan Steel Limited - India
- Globalindo Alam Lestari - Indonesia
- Sinarmas Energy and Mining - Indonesia
- White Energy Company Limited
- Indo Tambangraya Megah - Indonesia
- IHS Mccloskey Coal Group - USA
- Ministry of Mines - Canada
- Merrill Lynch Commodities Europe
- Formosa Plastics Group - Taiwan
- Antam Resourcindo - Indonesia
- Malabar Cements Ltd - India
- Lanco Infratech Ltd - India
- Wood Mackenzie - Singapore
- Sarangani Energy Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Commonwealth Bank - Australia
- MS Steel International - UAE
- International Coal Ventures Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Directorate General of MIneral and Coal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- Interocean Group of Companies - India
- India Bulls Power Limited - India
- Directorate Of Revenue Intelligence - India
- Standard Chartered Bank - UAE
- Larsen & Toubro Limited - India
- Port Waratah Coal Services - Australia
- Romanian Commodities Exchange
- Videocon Industries ltd - India
- VISA Power Limited - India
- GAC Shipping (India) Pvt Ltd
- Singapore Mercantile Exchange
- AsiaOL BioFuels Corp., Philippines
- Meralco Power Generation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Africa Commodities Group - South Africa
- Siam City Cement PLC, Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Central Java Power - Indonesia
- Aditya Birla Group - India
- Price Waterhouse Coopers - Russia
- GN Power Mariveles Coal Plant, Philippines
- Star Paper Mills Limited - India
- Thai Mozambique Logistica
- Attock Cement Pakistan Limited
- Salva Resources Pvt Ltd - India
- Vedanta Resources Plc - India
- Indian Oil Corporation Limited
- Grasim Industreis Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Finance - Indonesia
- Dalmia Cement Bharat India
- Edison Trading Spa - Italy
- Savvy Resources Ltd - HongKong
- Kaltim Prima Coal - Indonesia
- Medco Energi Mining Internasional
- Carbofer General Trading SA - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Therma Luzon, Inc, Philippines
- Mjunction Services Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Binh Thuan Hamico - Vietnam
- ICICI Bank Limited - India
- Sindya Power Generating Company Private Ltd
- Electricity Authority, New Zealand
- Global Coal Blending Company Limited - Australia
- Parliament of New Zealand
- Mercator Lines Limited - India
- McConnell Dowell - Australia
- Energy Development Corp, Philippines
- The University of Queensland
- Billiton Holdings Pty Ltd - Australia
- Chettinad Cement Corporation Ltd - India
- Trasteel International SA, Italy
- Coal and Oil Company - UAE
- Kalimantan Lumbung Energi - Indonesia
- Australian Coal Association
- Intertek Mineral Services - Indonesia
- Power Finance Corporation Ltd., India
- Renaissance Capital - South Africa
- Coastal Gujarat Power Limited - India
- Oldendorff Carriers - Singapore
- Uttam Galva Steels Limited - India
- Indogreen Group - Indonesia
- ASAPP Information Group - India
- Agrawal Coal Company - India
- Minerals Council of Australia
- Tamil Nadu electricity Board
- Miang Besar Coal Terminal - Indonesia
- Eastern Energy - Thailand
- SN Aboitiz Power Inc, Philippines
- Coalindo Energy - Indonesia
- Planning Commission, India
- Petrochimia International Co. Ltd.- Taiwan
- Energy Link Ltd, New Zealand
- Bhoruka Overseas - Indonesia
- Vizag Seaport Private Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Orica Mining Services - Indonesia
- The State Trading Corporation of India Ltd
- Bhatia International Limited - India
- Kapuas Tunggal Persada - Indonesia
- Wilmar Investment Holdings
- Cigading International Bulk Terminal - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Chamber of Mines of South Africa
- Petron Corporation, Philippines
- Georgia Ports Authority, United States
- Parry Sugars Refinery, India
- Sojitz Corporation - Japan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kohat Cement Company Ltd. - Pakistan
- Central Electricity Authority - India
- Toyota Tsusho Corporation, Japan
- OPG Power Generation Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Samtan Co., Ltd - South Korea
- Borneo Indobara - Indonesia
- Economic Council, Georgia
- CIMB Investment Bank - Malaysia
- Riau Bara Harum - Indonesia
- Mintek Dendrill Indonesia
- Xindia Steels Limited - India
- Jaiprakash Power Ventures ltd
- New Zealand Coal & Carbon
- PowerSource Philippines DevCo
- Thiess Contractors Indonesia
- GVK Power & Infra Limited - India
- Marubeni Corporation - India
- Pendopo Energi Batubara - Indonesia
- Orica Australia Pty. Ltd.
- Australian Commodity Traders Exchange
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- LBH Netherlands Bv - Netherlands
- TeaM Sual Corporation - Philippines
- Heidelberg Cement - Germany
- Indika Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- Karaikal Port Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Manunggal Multi Energi - Indonesia
- Gujarat Sidhee Cement - India
- Goldman Sachs - Singapore
- Eastern Coal Council - USA
- Posco Energy - South Korea
- Timah Investasi Mineral - Indoneisa
- Ministry of Transport, Egypt
- Baramulti Group, Indonesia
- Tata Chemicals Ltd - India
- Independent Power Producers Association of India
- CNBM International Corporation - China
- PetroVietnam Power Coal Import and Supply Company
- Anglo American - United Kingdom
- Semirara Mining Corp, Philippines
- Ambuja Cements Ltd - India
- Essar Steel Hazira Ltd - India
- London Commodity Brokers - England
- GMR Energy Limited - India
- Bukit Baiduri Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Semirara Mining and Power Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Iligan Light & Power Inc, Philippines
- Kumho Petrochemical, South Korea
- Aboitiz Power Corporation - Philippines
- Rio Tinto Coal - Australia
- The Treasury - Australian Government
- Pipit Mutiara Jaya. PT, Indonesia
- Sical Logistics Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- PTC India Limited - India
- Kepco SPC Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Madhucon Powers Ltd - India
- Global Business Power Corporation, Philippines
|
| |
| |
|
