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, 10 September 20
DRY BULK SHIPPING: CHINA'S DEMAND KEEPING THE DRY BULK MARKET GOING - PETER SAND | BIMCO
Overview
An impressive recovery in Chinese dry bulk imports has protected the industry from the effects of falling demand in the rest of the wo ...
Thursday, 10 September 20
TANKER SHIPPING: FREIGHT RATES BACK AT LOSS-MAKING LEVELS AFTER 12 VERY PROFITABLE MONTHS - BIMCO
Overview
A stunningly strong 12 months for the tanker shipping industry is now being replaced by lower freight rates, as lower oil product ...
Thursday, 10 September 20
INDIA'S COAL IMPORTS STUMBLE IN AUGUST, RAISING RISK OF SLOW RECOVERY - REFINITIV | BANCHERO COSTA
After posting a mild recovery in July, India's coal imports have stumbled in August as the South Asian nation battles to restart it ...
Thursday, 10 September 20
THE FIRST 8 MONTHS OF 2020, INDONESIA EXPORTED 217.4 MLN TONNES OF COAL BASED ON REFINITIV - BANCHERO COSTA
The coal market has been hit by a weaker global economy as a result of COVID-19 pandemic and falling industrial electricity demand ...
Wednesday, 09 September 20
MARKET INSIGHT - INTERMODAL
The uneventful summer lull which is coming to an end soon has left its stigma on the newbuilding market, which has already been devastated by the g ...
|
|
|
Showing 786 to 790 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Global Coal Blending Company Limited - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Indonesian Coal Mining Association
- Minerals Council of Australia
- Meenaskhi Energy Private Limited - India
- Intertek Mineral Services - Indonesia
- Coal and Oil Company - UAE
- Miang Besar Coal Terminal - Indonesia
- Savvy Resources Ltd - HongKong
- Uttam Galva Steels Limited - India
- Economic Council, Georgia
- Madhucon Powers Ltd - India
- Mjunction Services Limited - India
- Binh Thuan Hamico - Vietnam
- Mercuria Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Semirara Mining Corp, Philippines
- Ministry of Mines - Canada
- European Bulk Services B.V. - Netherlands
- Petron Corporation, Philippines
- Ministry of Finance - Indonesia
- SMC Global Power, Philippines
- Ambuja Cements Ltd - India
- Jaiprakash Power Ventures ltd
- Attock Cement Pakistan Limited
- Thiess Contractors Indonesia
- Heidelberg Cement - Germany
- Vijayanagar Sugar Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Global Business Power Corporation, Philippines
- Baramulti Group, Indonesia
- AsiaOL BioFuels Corp., Philippines
- PTC India Limited - India
- Toyota Tsusho Corporation, Japan
- Kumho Petrochemical, South Korea
- Bhushan Steel Limited - India
- Deloitte Consulting - India
- Goldman Sachs - Singapore
- GMR Energy Limited - India
- Kapuas Tunggal Persada - Indonesia
- Kobexindo Tractors - Indoneisa
- Price Waterhouse Coopers - Russia
- Bangladesh Power Developement Board
- Meralco Power Generation, Philippines
- Georgia Ports Authority, United States
- TeaM Sual Corporation - Philippines
- Energy Link Ltd, New Zealand
- Maheswari Brothers Coal Limited - India
- Australian Commodity Traders Exchange
- Directorate General of MIneral and Coal - Indonesia
- The Treasury - Australian Government
- Posco Energy - South Korea
- VISA Power Limited - India
- Chamber of Mines of South Africa
- Siam City Cement PLC, Thailand
- Kepco SPC Power Corporation, Philippines
- Coalindo Energy - Indonesia
- Medco Energi Mining Internasional
- Grasim Industreis Ltd - India
- Romanian Commodities Exchange
- Mintek Dendrill Indonesia
- Cement Manufacturers Association - India
- Karaikal Port Pvt Ltd - India
- White Energy Company Limited
- London Commodity Brokers - England
- Sindya Power Generating Company Private Ltd
- Wood Mackenzie - Singapore
- International Coal Ventures Pvt Ltd - India
- Independent Power Producers Association of India
- Orica Australia Pty. Ltd.
- IEA Clean Coal Centre - UK
- Makarim & Taira - Indonesia
- Sojitz Corporation - Japan
- Krishnapatnam Port Company Ltd. - India
- Central Java Power - Indonesia
- CNBM International Corporation - China
- Manunggal Multi Energi - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Kartika Selabumi Mining - Indonesia
- Electricity Generating Authority of Thailand
- Ministry of Transport, Egypt
- Banpu Public Company Limited - Thailand
- Barasentosa Lestari - Indonesia
- Siam City Cement - Thailand
- IHS Mccloskey Coal Group - USA
- Latin American Coal - Colombia
- Billiton Holdings Pty Ltd - Australia
- Power Finance Corporation Ltd., India
- Sakthi Sugars Limited - India
- SN Aboitiz Power Inc, Philippines
- Xindia Steels Limited - India
- GVK Power & Infra Limited - India
- Cigading International Bulk Terminal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Dalmia Cement Bharat India
- Thai Mozambique Logistica
- Australian Coal Association
- Indogreen Group - Indonesia
- Bulk Trading Sa - Switzerland
- Renaissance Capital - South Africa
- Semirara Mining and Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Gujarat Sidhee Cement - India
- Neyveli Lignite Corporation Ltd, - India
- South Luzon Thermal Energy Corporation
- McConnell Dowell - Australia
- Indika Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Maharashtra Electricity Regulatory Commission - India
- PetroVietnam Power Coal Import and Supply Company
- Iligan Light & Power Inc, Philippines
- Lanco Infratech Ltd - India
- Standard Chartered Bank - UAE
- Formosa Plastics Group - Taiwan
- Anglo American - United Kingdom
- Parry Sugars Refinery, India
- TNB Fuel Sdn Bhd - Malaysia
- Oldendorff Carriers - Singapore
- Parliament of New Zealand
- The University of Queensland
- The State Trading Corporation of India Ltd
- Kalimantan Lumbung Energi - Indonesia
- Indian Energy Exchange, India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Orica Mining Services - Indonesia
- Kaltim Prima Coal - Indonesia
- Singapore Mercantile Exchange
- Mercator Lines Limited - India
- Agrawal Coal Company - India
- Vedanta Resources Plc - India
- MS Steel International - UAE
- Edison Trading Spa - Italy
- Leighton Contractors Pty Ltd - Australia
- Straits Asia Resources Limited - Singapore
- Riau Bara Harum - Indonesia
- Star Paper Mills Limited - India
- Port Waratah Coal Services - Australia
- Eastern Energy - Thailand
- PNOC Exploration Corporation - Philippines
- Merrill Lynch Commodities Europe
- Sinarmas Energy and Mining - Indonesia
- ASAPP Information Group - India
- Indian Oil Corporation Limited
- Samtan Co., Ltd - South Korea
- Bhoruka Overseas - Indonesia
- SMG Consultants - Indonesia
- Planning Commission, India
- Bharathi Cement Corporation - India
- Larsen & Toubro Limited - India
- ICICI Bank Limited - India
- Antam Resourcindo - Indonesia
- Borneo Indobara - Indonesia
- Simpson Spence & Young - Indonesia
- Electricity Authority, New Zealand
- Sree Jayajothi Cements Limited - India
- Chettinad Cement Corporation Ltd - India
- Interocean Group of Companies - India
- Aditya Birla Group - India
- Bayan Resources Tbk. - Indonesia
- Indo Tambangraya Megah - Indonesia
- Pendopo Energi Batubara - Indonesia
- India Bulls Power Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Bhatia International Limited - India
- Jindal Steel & Power Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Energy Development Corp, Philippines
- Ind-Barath Power Infra Limited - India
- Sarangani Energy Corporation, Philippines
- Wilmar Investment Holdings
- Marubeni Corporation - India
- Petrochimia International Co. Ltd.- Taiwan
- Asmin Koalindo Tuhup - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Videocon Industries ltd - India
- Coastal Gujarat Power Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Globalindo Alam Lestari - Indonesia
- Trasteel International SA, Italy
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Tata Chemicals Ltd - India
- New Zealand Coal & Carbon
- PowerSource Philippines DevCo
- San Jose City I Power Corp, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Electricity Regulatory Commission - India
- Eastern Coal Council - USA
- Ceylon Electricity Board - Sri Lanka
- Directorate Of Revenue Intelligence - India
- Malabar Cements Ltd - India
- Rio Tinto Coal - Australia
- Gujarat Mineral Development Corp Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Vizag Seaport Private Limited - India
- Aboitiz Power Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- CIMB Investment Bank - Malaysia
- Therma Luzon, Inc, Philippines
- Essar Steel Hazira Ltd - India
- Carbofer General Trading SA - India
- Bukit Makmur.PT - Indonesia
- Altura Mining Limited, Indonesia
- Tamil Nadu electricity Board
- LBH Netherlands Bv - Netherlands
- Africa Commodities Group - South Africa
- Central Electricity Authority - India
- Sical Logistics Limited - India
- Kideco Jaya Agung - Indonesia
- OPG Power Generation Pvt Ltd - India
- Commonwealth Bank - Australia
- Timah Investasi Mineral - Indoneisa
- Rashtriya Ispat Nigam Limited - India
|
| |
| |
|
