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, 17 June 20
KOREA SOUTHERN POWER CO INVITED 80000 MT OF LOW CALORIFIC VALUE COAL FOR AUGUST 1H, 2020 LOADING
COALspot.com: Korea Southern Power Co., Ltd. (KOSPO) has issued an International tender for 80,000 Metric Tons (MT) Min 4,200 kcal/kg - Max. ...
Tuesday, 16 June 20
A GLOBAL ECONOMIC SLUMP: WHAT WILL IT MEAN FOR METALS AND MINING? - WOOD MACKENZIE
Back before coronavirus knocked “normal” out cold, the key issues for miners were sub-investment prices, rising requirements for ESG an ...
Tuesday, 16 June 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX UP 0.58 PCT - XINHUA
China Taiyuan coal transaction price index stood at 124.43 points Monday, up 0.58 percent week on week.
The index, released by China ...
Tuesday, 16 June 20
HIGHER IRON ORE PRICES OFFSET CORONAVIRUS-DRIVEN PRODUCTION RISK - FITCH RATINGS
Lower iron ore production in Brazil, resulting from rising coronavirus infections, should only marginally affect the cash flow of Vale and other gl ...
Tuesday, 16 June 20
SHALE SHOCKED - WOOD MACKENZIE
Capturing shut-ins in real time
Oil markets are searching for balance as the world reflects on the impact of the COVID-19 pandemic. ...
|
|
|
Showing 906 to 910 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Heidelberg Cement - Germany
- Samtan Co., Ltd - South Korea
- Videocon Industries ltd - India
- ICICI Bank Limited - India
- Semirara Mining Corp, Philippines
- Leighton Contractors Pty Ltd - Australia
- Coalindo Energy - Indonesia
- Petron Corporation, Philippines
- Antam Resourcindo - Indonesia
- Baramulti Group, Indonesia
- Global Business Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- New Zealand Coal & Carbon
- Wood Mackenzie - Singapore
- Star Paper Mills Limited - India
- Directorate Of Revenue Intelligence - India
- SMG Consultants - Indonesia
- Price Waterhouse Coopers - Russia
- Thai Mozambique Logistica
- Vedanta Resources Plc - India
- PowerSource Philippines DevCo
- Aditya Birla Group - India
- Bukit Baiduri Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- Economic Council, Georgia
- Parliament of New Zealand
- Therma Luzon, Inc, Philippines
- Banpu Public Company Limited - Thailand
- Maharashtra Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Ministry of Mines - Canada
- Semirara Mining and Power Corporation, Philippines
- Interocean Group of Companies - India
- McConnell Dowell - Australia
- Central Electricity Authority - India
- Cigading International Bulk Terminal - Indonesia
- Uttam Galva Steels Limited - India
- White Energy Company Limited
- Kohat Cement Company Ltd. - Pakistan
- Altura Mining Limited, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Agrawal Coal Company - India
- SN Aboitiz Power Inc, Philippines
- Sical Logistics Limited - India
- Formosa Plastics Group - Taiwan
- Australian Commodity Traders Exchange
- Gujarat Mineral Development Corp Ltd - India
- Ambuja Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- CNBM International Corporation - China
- Edison Trading Spa - Italy
- Gujarat Electricity Regulatory Commission - India
- Krishnapatnam Port Company Ltd. - India
- Salva Resources Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Eastern Energy - Thailand
- Iligan Light & Power Inc, Philippines
- The University of Queensland
- Ceylon Electricity Board - Sri Lanka
- Central Java Power - Indonesia
- Minerals Council of Australia
- Binh Thuan Hamico - Vietnam
- The Treasury - Australian Government
- Miang Besar Coal Terminal - Indonesia
- Independent Power Producers Association of India
- Trasteel International SA, Italy
- Essar Steel Hazira Ltd - India
- Ministry of Finance - Indonesia
- Maheswari Brothers Coal Limited - India
- Kobexindo Tractors - Indoneisa
- Kapuas Tunggal Persada - Indonesia
- Savvy Resources Ltd - HongKong
- MS Steel International - UAE
- Commonwealth Bank - Australia
- European Bulk Services B.V. - Netherlands
- Bulk Trading Sa - Switzerland
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indian Energy Exchange, India
- SMC Global Power, Philippines
- Kaltim Prima Coal - Indonesia
- Cement Manufacturers Association - India
- Goldman Sachs - Singapore
- London Commodity Brokers - England
- GAC Shipping (India) Pvt Ltd
- Barasentosa Lestari - Indonesia
- Malabar Cements Ltd - India
- Attock Cement Pakistan Limited
- Anglo American - United Kingdom
- Mercuria Energy - Indonesia
- Kumho Petrochemical, South Korea
- India Bulls Power Limited - India
- Tata Chemicals Ltd - India
- Renaissance Capital - South Africa
- Sakthi Sugars Limited - India
- Carbofer General Trading SA - India
- Port Waratah Coal Services - Australia
- Lanco Infratech Ltd - India
- Coal and Oil Company - UAE
- Chamber of Mines of South Africa
- Merrill Lynch Commodities Europe
- Jaiprakash Power Ventures ltd
- Meenaskhi Energy Private Limited - India
- Energy Development Corp, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Straits Asia Resources Limited - Singapore
- Sarangani Energy Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Madhucon Powers Ltd - India
- Alfred C Toepfer International GmbH - Germany
- LBH Netherlands Bv - Netherlands
- Petrochimia International Co. Ltd.- Taiwan
- Standard Chartered Bank - UAE
- Karaikal Port Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Metalloyd Limited - United Kingdom
- Chettinad Cement Corporation Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Siam City Cement - Thailand
- Posco Energy - South Korea
- Riau Bara Harum - Indonesia
- Larsen & Toubro Limited - India
- Bayan Resources Tbk. - Indonesia
- Timah Investasi Mineral - Indoneisa
- Intertek Mineral Services - Indonesia
- Borneo Indobara - Indonesia
- Latin American Coal - Colombia
- San Jose City I Power Corp, Philippines
- Indonesian Coal Mining Association
- Pipit Mutiara Jaya. PT, Indonesia
- Medco Energi Mining Internasional
- Grasim Industreis Ltd - India
- Bhushan Steel Limited - India
- Eastern Coal Council - USA
- Kepco SPC Power Corporation, Philippines
- Orica Australia Pty. Ltd.
- Energy Link Ltd, New Zealand
- Indo Tambangraya Megah - Indonesia
- Power Finance Corporation Ltd., India
- Bharathi Cement Corporation - India
- Pendopo Energi Batubara - Indonesia
- Rio Tinto Coal - Australia
- Deloitte Consulting - India
- GN Power Mariveles Coal Plant, Philippines
- Wilmar Investment Holdings
- Bahari Cakrawala Sebuku - Indonesia
- Indika Energy - Indonesia
- VISA Power Limited - India
- GVK Power & Infra Limited - India
- Holcim Trading Pte Ltd - Singapore
- Mintek Dendrill Indonesia
- Vizag Seaport Private Limited - India
- ASAPP Information Group - India
- GMR Energy Limited - India
- Marubeni Corporation - India
- Parry Sugars Refinery, India
- Bhatia International Limited - India
- TeaM Sual Corporation - Philippines
- Electricity Generating Authority of Thailand
- Tamil Nadu electricity Board
- Meralco Power Generation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- PNOC Exploration Corporation - Philippines
- Bhoruka Overseas - Indonesia
- Global Coal Blending Company Limited - Australia
- Kartika Selabumi Mining - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Siam City Cement PLC, Thailand
- Australian Coal Association
- Kideco Jaya Agung - Indonesia
- Xindia Steels Limited - India
- South Luzon Thermal Energy Corporation
- Kalimantan Lumbung Energi - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Neyveli Lignite Corporation Ltd, - India
- Ministry of Transport, Egypt
- Rashtriya Ispat Nigam Limited - India
- Makarim & Taira - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Thiess Contractors Indonesia
- Ind-Barath Power Infra Limited - India
- Indogreen Group - Indonesia
- Indian Oil Corporation Limited
- Mercator Lines Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Dalmia Cement Bharat India
- PTC India Limited - India
- Africa Commodities Group - South Africa
- Bukit Makmur.PT - Indonesia
- Mjunction Services Limited - India
- Electricity Authority, New Zealand
- IEA Clean Coal Centre - UK
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Georgia Ports Authority, United States
- Planning Commission, India
- Karbindo Abesyapradhi - Indoneisa
- OPG Power Generation Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- PetroVietnam Power Coal Import and Supply Company
- CIMB Investment Bank - Malaysia
- Singapore Mercantile Exchange
- Romanian Commodities Exchange
- Bangladesh Power Developement Board
- AsiaOL BioFuels Corp., Philippines
- Jindal Steel & Power Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Sojitz Corporation - Japan
- Orica Mining Services - Indonesia
- Oldendorff Carriers - Singapore
- IHS Mccloskey Coal Group - USA
- Coastal Gujarat Power Limited - India
- Gujarat Sidhee Cement - India
- Manunggal Multi Energi - Indonesia
- Sree Jayajothi Cements Limited - India
|
| |
| |
|
