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, 11 March 20
SHIPPING MARKET INSIGHT - INTERMODAL
On the 4th of September the Baltic Dry Index marked its highest level for 2019, reaching 2,518 points, while the rest of the dry indices also recor ...
Tuesday, 10 March 20
SHIPPING MARKET ANALYSIS
It might be already overstated, but it seems to be important to point out once again how peculiar the current circumstances are.
Before the st ...
Tuesday, 10 March 20
EIA FORECASTS U.S ELECTRIC POWER SECTOR DEMAND FOR COAL WILL FALL BY 81 MMST (15%) IN 2020
EIA forecasts that U.S. coal production will total 595 million short tons (MMst) in 2020, down 95 MMst (14%) from 2019. According to EIA's Shor ...
Tuesday, 10 March 20
CORONAVIRUS: DEMAND DOWNGRADES FOR BULK COMMODITIES - WOOD MACKENZIE
The coronavirus outbreak is a rapidly evolving news story – and a real wildcard for bulks demand. Our global experts are monitoring the impac ...
Tuesday, 10 March 20
CHINA'S COAL-RICH PROVINCE ENSURES ENERGY SUPPLY AMID EPIDEMIC - XINHUA
China’s coal-rich province of Shanxi has seen more than 500 coal mines resume production in February, which ensured energy supply amid the ou ...
|
|
|
Showing 1076 to 1080 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Power Finance Corporation Ltd., India
- Meenaskhi Energy Private Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Lanco Infratech Ltd - India
- Energy Development Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Romanian Commodities Exchange
- Kartika Selabumi Mining - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- PTC India Limited - India
- Thiess Contractors Indonesia
- Sindya Power Generating Company Private Ltd
- IEA Clean Coal Centre - UK
- Vizag Seaport Private Limited - India
- Indian Energy Exchange, India
- The State Trading Corporation of India Ltd
- Coastal Gujarat Power Limited - India
- MS Steel International - UAE
- Krishnapatnam Port Company Ltd. - India
- Wilmar Investment Holdings
- Coalindo Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- Ambuja Cements Ltd - India
- Straits Asia Resources Limited - Singapore
- Formosa Plastics Group - Taiwan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Mercator Lines Limited - India
- Deloitte Consulting - India
- Petron Corporation, Philippines
- Heidelberg Cement - Germany
- Sical Logistics Limited - India
- Tamil Nadu electricity Board
- Savvy Resources Ltd - HongKong
- Directorate Of Revenue Intelligence - India
- Kideco Jaya Agung - Indonesia
- Interocean Group of Companies - India
- Pendopo Energi Batubara - Indonesia
- McConnell Dowell - Australia
- Xindia Steels Limited - India
- The University of Queensland
- Indo Tambangraya Megah - Indonesia
- Metalloyd Limited - United Kingdom
- Economic Council, Georgia
- Riau Bara Harum - Indonesia
- PNOC Exploration Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Latin American Coal - Colombia
- Sarangani Energy Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- CNBM International Corporation - China
- Electricity Generating Authority of Thailand
- Mercuria Energy - Indonesia
- Grasim Industreis Ltd - India
- Ministry of Finance - Indonesia
- Port Waratah Coal Services - Australia
- Gujarat Electricity Regulatory Commission - India
- Eastern Coal Council - USA
- Star Paper Mills Limited - India
- Oldendorff Carriers - Singapore
- AsiaOL BioFuels Corp., Philippines
- Holcim Trading Pte Ltd - Singapore
- Marubeni Corporation - India
- Vedanta Resources Plc - India
- Altura Mining Limited, Indonesia
- Banpu Public Company Limited - Thailand
- Baramulti Group, Indonesia
- Bulk Trading Sa - Switzerland
- ASAPP Information Group - India
- Agrawal Coal Company - India
- Bangladesh Power Developement Board
- Larsen & Toubro Limited - India
- Essar Steel Hazira Ltd - India
- White Energy Company Limited
- Videocon Industries ltd - India
- Goldman Sachs - Singapore
- Central Java Power - Indonesia
- Australian Coal Association
- Iligan Light & Power Inc, Philippines
- Barasentosa Lestari - Indonesia
- Edison Trading Spa - Italy
- Toyota Tsusho Corporation, Japan
- Kalimantan Lumbung Energi - Indonesia
- Standard Chartered Bank - UAE
- Kobexindo Tractors - Indoneisa
- PowerSource Philippines DevCo
- Parry Sugars Refinery, India
- Bahari Cakrawala Sebuku - Indonesia
- Jaiprakash Power Ventures ltd
- Planning Commission, India
- Simpson Spence & Young - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Ministry of Transport, Egypt
- Ceylon Electricity Board - Sri Lanka
- TeaM Sual Corporation - Philippines
- Bhoruka Overseas - Indonesia
- Ministry of Mines - Canada
- London Commodity Brokers - England
- Maharashtra Electricity Regulatory Commission - India
- Intertek Mineral Services - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Africa Commodities Group - South Africa
- Antam Resourcindo - Indonesia
- Rio Tinto Coal - Australia
- Coal and Oil Company - UAE
- LBH Netherlands Bv - Netherlands
- Bukit Asam (Persero) Tbk - Indonesia
- Indian Oil Corporation Limited
- Madhucon Powers Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Singapore Mercantile Exchange
- Price Waterhouse Coopers - Russia
- Indogreen Group - Indonesia
- Energy Link Ltd, New Zealand
- Therma Luzon, Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Georgia Ports Authority, United States
- GMR Energy Limited - India
- Commonwealth Bank - Australia
- Parliament of New Zealand
- Bharathi Cement Corporation - India
- Gujarat Sidhee Cement - India
- SMC Global Power, Philippines
- Jindal Steel & Power Ltd - India
- Kepco SPC Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Karbindo Abesyapradhi - Indoneisa
- Samtan Co., Ltd - South Korea
- SMG Consultants - Indonesia
- Ind-Barath Power Infra Limited - India
- Trasteel International SA, Italy
- Central Electricity Authority - India
- Carbofer General Trading SA - India
- Cement Manufacturers Association - India
- Bukit Makmur.PT - Indonesia
- Bhushan Steel Limited - India
- Globalindo Alam Lestari - Indonesia
- Indonesian Coal Mining Association
- Makarim & Taira - Indonesia
- Anglo American - United Kingdom
- Kohat Cement Company Ltd. - Pakistan
- Salva Resources Pvt Ltd - India
- Sakthi Sugars Limited - India
- Orica Mining Services - Indonesia
- Merrill Lynch Commodities Europe
- Indika Energy - Indonesia
- Mintek Dendrill Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Aditya Birla Group - India
- Siam City Cement PLC, Thailand
- Thai Mozambique Logistica
- Minerals Council of Australia
- Siam City Cement - Thailand
- CIMB Investment Bank - Malaysia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- India Bulls Power Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Independent Power Producers Association of India
- IHS Mccloskey Coal Group - USA
- European Bulk Services B.V. - Netherlands
- Medco Energi Mining Internasional
- Kapuas Tunggal Persada - Indonesia
- Renaissance Capital - South Africa
- Maheswari Brothers Coal Limited - India
- Sinarmas Energy and Mining - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Bayan Resources Tbk. - Indonesia
- VISA Power Limited - India
- Kumho Petrochemical, South Korea
- Eastern Energy - Thailand
- Borneo Indobara - Indonesia
- New Zealand Coal & Carbon
- Rashtriya Ispat Nigam Limited - India
- Miang Besar Coal Terminal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Bhatia International Limited - India
- Sojitz Corporation - Japan
- Tata Chemicals Ltd - India
- GAC Shipping (India) Pvt Ltd
- The Treasury - Australian Government
- Chamber of Mines of South Africa
- Global Coal Blending Company Limited - Australia
- PetroVietnam Power Coal Import and Supply Company
- Mjunction Services Limited - India
- Dalmia Cement Bharat India
- SN Aboitiz Power Inc, Philippines
- Global Business Power Corporation, Philippines
- Australian Commodity Traders Exchange
- ICICI Bank Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Orica Australia Pty. Ltd.
- Wood Mackenzie - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GVK Power & Infra Limited - India
- Manunggal Multi Energi - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- South Luzon Thermal Energy Corporation
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- OPG Power Generation Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- San Jose City I Power Corp, Philippines
- Meralco Power Generation, Philippines
- Electricity Authority, New Zealand
- Malabar Cements Ltd - India
- Attock Cement Pakistan Limited
- TNB Fuel Sdn Bhd - Malaysia
- Kaltim Prima Coal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Posco Energy - South Korea
- Asmin Koalindo Tuhup - Indonesia
- Karaikal Port Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Jorong Barutama Greston.PT - Indonesia
|
| |
| |
|
