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, 16 April 23
CHINA'S MARCH COAL IMPORTS JUMP TO 3-YEAR HIGH - REUTERS
China’s coal imports surged in March to their highest in any month over the past three years as utilities increased purchases on expectations ...
Sunday, 16 April 23
OPEC KEEPS WORLD OIL DEMAND GROWTH OUTLOOK UNCHANGED
The OPEC Reference Basket (ORB) declined in March by $3.43, or 4.2%, m-o-m to average $78.45/b. The ICE Brent first-month contract fell by $4.33, o ...
Sunday, 16 April 23
CHEAPER SPOT LNG PRICES TEMPT SOME ASIAN BUYERS AMID SUPPLY GAINS - REUTERS
Cheaper spot prices for liquefied natural gas (LNG) are luring price-sensitive buyers back in Asia, with China and India recording rising imports i ...
Tuesday, 11 April 23
COAL USE CLIMBS WORLDWIDE DESPITE PROMISES TO SLASH IT - AAP
The burning of coal for electricity, cement, steel and other uses went up in 2022 despite global promises to phase down the fuel that is the bigges ...
Tuesday, 11 April 23
OIL RISES ON CHINA STIMULUS EXPECTATIONS, WEAKER DOLLAR - REUTERS
Oil prices rose on Tuesday on expectations of potential economic stimulus by China, healthy demand in the rest of Asia and a drop in U.S. crude sto ...
|
|
|
Showing 106 to 110 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- ICICI Bank Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- VISA Power Limited - India
- Uttam Galva Steels Limited - India
- Directorate Of Revenue Intelligence - India
- Tamil Nadu electricity Board
- Wilmar Investment Holdings
- The University of Queensland
- Gujarat Sidhee Cement - India
- Jaiprakash Power Ventures ltd
- Savvy Resources Ltd - HongKong
- TeaM Sual Corporation - Philippines
- Simpson Spence & Young - Indonesia
- Cement Manufacturers Association - India
- IEA Clean Coal Centre - UK
- Salva Resources Pvt Ltd - India
- Rio Tinto Coal - Australia
- Xindia Steels Limited - India
- Edison Trading Spa - Italy
- Banpu Public Company Limited - Thailand
- Riau Bara Harum - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- Electricity Authority, New Zealand
- Pendopo Energi Batubara - Indonesia
- Central Java Power - Indonesia
- Vedanta Resources Plc - India
- Indonesian Coal Mining Association
- Renaissance Capital - South Africa
- Gujarat Electricity Regulatory Commission - India
- South Luzon Thermal Energy Corporation
- Kideco Jaya Agung - Indonesia
- Parliament of New Zealand
- Krishnapatnam Port Company Ltd. - India
- Madhucon Powers Ltd - India
- Dalmia Cement Bharat India
- Neyveli Lignite Corporation Ltd, - India
- Karbindo Abesyapradhi - Indoneisa
- Sindya Power Generating Company Private Ltd
- SN Aboitiz Power Inc, Philippines
- Mercuria Energy - Indonesia
- Malabar Cements Ltd - India
- Carbofer General Trading SA - India
- GVK Power & Infra Limited - India
- Price Waterhouse Coopers - Russia
- Energy Link Ltd, New Zealand
- PetroVietnam Power Coal Import and Supply Company
- Intertek Mineral Services - Indonesia
- Therma Luzon, Inc, Philippines
- Indika Energy - Indonesia
- AsiaOL BioFuels Corp., Philippines
- The Treasury - Australian Government
- Kepco SPC Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- McConnell Dowell - Australia
- Samtan Co., Ltd - South Korea
- Ministry of Transport, Egypt
- Bhushan Steel Limited - India
- IHS Mccloskey Coal Group - USA
- Independent Power Producers Association of India
- Aditya Birla Group - India
- Standard Chartered Bank - UAE
- Indogreen Group - Indonesia
- Ind-Barath Power Infra Limited - India
- Oldendorff Carriers - Singapore
- Eastern Coal Council - USA
- Medco Energi Mining Internasional
- Kaltim Prima Coal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- San Jose City I Power Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- Borneo Indobara - Indonesia
- Port Waratah Coal Services - Australia
- Ministry of Finance - Indonesia
- Mintek Dendrill Indonesia
- Goldman Sachs - Singapore
- Manunggal Multi Energi - Indonesia
- Grasim Industreis Ltd - India
- PowerSource Philippines DevCo
- Kohat Cement Company Ltd. - Pakistan
- Chettinad Cement Corporation Ltd - India
- Mercator Lines Limited - India
- Thiess Contractors Indonesia
- Rashtriya Ispat Nigam Limited - India
- White Energy Company Limited
- Chamber of Mines of South Africa
- Timah Investasi Mineral - Indoneisa
- CIMB Investment Bank - Malaysia
- Bukit Makmur.PT - Indonesia
- Videocon Industries ltd - India
- Makarim & Taira - Indonesia
- New Zealand Coal & Carbon
- Baramulti Group, Indonesia
- Agrawal Coal Company - India
- Formosa Plastics Group - Taiwan
- Africa Commodities Group - South Africa
- Bahari Cakrawala Sebuku - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sical Logistics Limited - India
- Kumho Petrochemical, South Korea
- SMC Global Power, Philippines
- Lanco Infratech Ltd - India
- Sakthi Sugars Limited - India
- European Bulk Services B.V. - Netherlands
- Indo Tambangraya Megah - Indonesia
- Ministry of Mines - Canada
- Tata Chemicals Ltd - India
- Coal and Oil Company - UAE
- Marubeni Corporation - India
- Straits Asia Resources Limited - Singapore
- Kobexindo Tractors - Indoneisa
- Siam City Cement PLC, Thailand
- London Commodity Brokers - England
- Altura Mining Limited, Indonesia
- Semirara Mining Corp, Philippines
- MS Steel International - UAE
- Iligan Light & Power Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Green Power PLC Corporation, Philippines
- Interocean Group of Companies - India
- Vijayanagar Sugar Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- LBH Netherlands Bv - Netherlands
- Power Finance Corporation Ltd., India
- Bayan Resources Tbk. - Indonesia
- Toyota Tsusho Corporation, Japan
- Aboitiz Power Corporation - Philippines
- Merrill Lynch Commodities Europe
- Karaikal Port Pvt Ltd - India
- Minerals Council of Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Star Paper Mills Limited - India
- Leighton Contractors Pty Ltd - Australia
- Essar Steel Hazira Ltd - India
- Parry Sugars Refinery, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Electricity Generating Authority of Thailand
- Orica Mining Services - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Latin American Coal - Colombia
- Vizag Seaport Private Limited - India
- International Coal Ventures Pvt Ltd - India
- Georgia Ports Authority, United States
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Antam Resourcindo - Indonesia
- Bhoruka Overseas - Indonesia
- India Bulls Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Coastal Gujarat Power Limited - India
- Trasteel International SA, Italy
- Bangladesh Power Developement Board
- Meralco Power Generation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Cigading International Bulk Terminal - Indonesia
- OPG Power Generation Pvt Ltd - India
- Singapore Mercantile Exchange
- Bharathi Cement Corporation - India
- Globalindo Alam Lestari - Indonesia
- Australian Coal Association
- Central Electricity Authority - India
- Asmin Koalindo Tuhup - Indonesia
- Australian Commodity Traders Exchange
- Miang Besar Coal Terminal - Indonesia
- ASAPP Information Group - India
- Thai Mozambique Logistica
- Bhatia International Limited - India
- Ceylon Electricity Board - Sri Lanka
- Kartika Selabumi Mining - Indonesia
- Orica Australia Pty. Ltd.
- Eastern Energy - Thailand
- PTC India Limited - India
- Attock Cement Pakistan Limited
- Deloitte Consulting - India
- Siam City Cement - Thailand
- SMG Consultants - Indonesia
- Larsen & Toubro Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mjunction Services Limited - India
- Heidelberg Cement - Germany
- Wood Mackenzie - Singapore
- Gujarat Mineral Development Corp Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Global Business Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Sree Jayajothi Cements Limited - India
- Petron Corporation, Philippines
- Economic Council, Georgia
- Metalloyd Limited - United Kingdom
- Directorate General of MIneral and Coal - Indonesia
- Jindal Steel & Power Ltd - India
- Anglo American - United Kingdom
- GMR Energy Limited - India
- Indian Oil Corporation Limited
- Binh Thuan Hamico - Vietnam
- Coalindo Energy - Indonesia
- The State Trading Corporation of India Ltd
- Commonwealth Bank - Australia
- Planning Commission, India
- TNB Fuel Sdn Bhd - Malaysia
- Energy Development Corp, Philippines
- CNBM International Corporation - China
- Ambuja Cements Ltd - India
- Global Coal Blending Company Limited - Australia
- Romanian Commodities Exchange
- Sojitz Corporation - Japan
- Sinarmas Energy and Mining - Indonesia
- Sarangani Energy Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Indian Energy Exchange, India
|
| |
| |
|
