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.
|
|
Tuesday, 03 March 20
COAL'S SHARE OF CHINA ENERGY MIX FALLS IN 2019 BUT CONSUMPTION STILL RISING - REUTERS
Coal accounted for 57.7% of China’s primary energy consumption in 2019, the National Bureau of Statistics said on Friday, down 1.5 percentage ...
Monday, 02 March 20
SHIPOWNERS AND OPERATORS COULD FACE DETENTION OF SHIPS FROM 1ST MARCH UNDER IMO RULE - ICS
Port state control authorities will begin to enforce the IMO’s Sulphur 2020 from 1st March, making it an offense for ships to carry fuel that ...
Saturday, 29 February 20
SUPRAMAX SENTIMENT WAS UP IN A FEW KEY AREAS OVER THE LAST WEEK - BALTIC BRIEFING
Capesize
The Capesize market woes related to Coronavirus have now spread through the wider global markets like wildfire. The wider supply and d ...
Thursday, 27 February 20
FOREIGN COMPANIES LIKELY TO SKIP COMMERCIAL COAL BLOCK AUCTIONS - ECONOMIC TIMES
The Centre is in the process of inviting global players for commercial mining, following 100% foreign direct investment in the sector. However, giv ...
Wednesday, 26 February 20
SHIPPING MARKET INSIGHT - INTERMODAL
Coming from one of its busiest periods historically, with a list of scrubber and BWMS retrofits on a waiting list, the ship repair sector is witnes ...
|
|
|
Showing 1101 to 1105 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Larsen & Toubro Limited - India
- Globalindo Alam Lestari - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Ministry of Mines - Canada
- Borneo Indobara - Indonesia
- Carbofer General Trading SA - India
- Uttam Galva Steels Limited - India
- AsiaOL BioFuels Corp., Philippines
- Chettinad Cement Corporation Ltd - India
- SN Aboitiz Power Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Jindal Steel & Power Ltd - India
- Sarangani Energy Corporation, Philippines
- Coalindo Energy - Indonesia
- Trasteel International SA, Italy
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Orica Mining Services - Indonesia
- Sakthi Sugars Limited - India
- Parliament of New Zealand
- Makarim & Taira - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Billiton Holdings Pty Ltd - Australia
- Meralco Power Generation, Philippines
- Binh Thuan Hamico - Vietnam
- ASAPP Information Group - India
- Renaissance Capital - South Africa
- Bahari Cakrawala Sebuku - Indonesia
- Australian Commodity Traders Exchange
- Central Electricity Authority - India
- Indogreen Group - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Semirara Mining Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Bangladesh Power Developement Board
- Kalimantan Lumbung Energi - Indonesia
- Meenaskhi Energy Private Limited - India
- Essar Steel Hazira Ltd - India
- Romanian Commodities Exchange
- Singapore Mercantile Exchange
- Gujarat Electricity Regulatory Commission - India
- Energy Link Ltd, New Zealand
- Standard Chartered Bank - UAE
- Ministry of Transport, Egypt
- Merrill Lynch Commodities Europe
- Port Waratah Coal Services - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sical Logistics Limited - India
- SMG Consultants - Indonesia
- Cement Manufacturers Association - India
- Wilmar Investment Holdings
- The Treasury - Australian Government
- Posco Energy - South Korea
- Price Waterhouse Coopers - Russia
- Minerals Council of Australia
- India Bulls Power Limited - India
- Power Finance Corporation Ltd., India
- Global Business Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Iligan Light & Power Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Savvy Resources Ltd - HongKong
- GMR Energy Limited - India
- Kartika Selabumi Mining - Indonesia
- Altura Mining Limited, Indonesia
- Dalmia Cement Bharat India
- GVK Power & Infra Limited - India
- Videocon Industries ltd - India
- Bukit Baiduri Energy - Indonesia
- Deloitte Consulting - India
- Bhoruka Overseas - Indonesia
- Georgia Ports Authority, United States
- Aboitiz Power Corporation - Philippines
- Central Java Power - Indonesia
- Petron Corporation, Philippines
- Eastern Coal Council - USA
- McConnell Dowell - Australia
- Tata Chemicals Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Aditya Birla Group - India
- Jorong Barutama Greston.PT - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- LBH Netherlands Bv - Netherlands
- Sojitz Corporation - Japan
- Africa Commodities Group - South Africa
- Anglo American - United Kingdom
- Bulk Trading Sa - Switzerland
- Xindia Steels Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Kumho Petrochemical, South Korea
- Directorate Of Revenue Intelligence - India
- The State Trading Corporation of India Ltd
- IEA Clean Coal Centre - UK
- TeaM Sual Corporation - Philippines
- Siam City Cement PLC, Thailand
- Metalloyd Limited - United Kingdom
- Mjunction Services Limited - India
- South Luzon Thermal Energy Corporation
- Manunggal Multi Energi - Indonesia
- Riau Bara Harum - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Electricity Authority, New Zealand
- ICICI Bank Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kideco Jaya Agung - Indonesia
- SMC Global Power, Philippines
- Independent Power Producers Association of India
- Kepco SPC Power Corporation, Philippines
- Mercator Lines Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Tamil Nadu electricity Board
- New Zealand Coal & Carbon
- Indian Oil Corporation Limited
- Attock Cement Pakistan Limited
- Mercuria Energy - Indonesia
- Jaiprakash Power Ventures ltd
- Planning Commission, India
- Lanco Infratech Ltd - India
- Eastern Energy - Thailand
- Neyveli Lignite Corporation Ltd, - India
- Ministry of Finance - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Toyota Tsusho Corporation, Japan
- Simpson Spence & Young - Indonesia
- Marubeni Corporation - India
- Electricity Generating Authority of Thailand
- Antam Resourcindo - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indian Energy Exchange, India
- Alfred C Toepfer International GmbH - Germany
- Formosa Plastics Group - Taiwan
- Maharashtra Electricity Regulatory Commission - India
- White Energy Company Limited
- Madhucon Powers Ltd - India
- Orica Australia Pty. Ltd.
- Energy Development Corp, Philippines
- PTC India Limited - India
- Ind-Barath Power Infra Limited - India
- CNBM International Corporation - China
- Baramulti Group, Indonesia
- Interocean Group of Companies - India
- Bhatia International Limited - India
- European Bulk Services B.V. - Netherlands
- Coastal Gujarat Power Limited - India
- Medco Energi Mining Internasional
- Samtan Co., Ltd - South Korea
- Oldendorff Carriers - Singapore
- Goldman Sachs - Singapore
- Bhushan Steel Limited - India
- Krishnapatnam Port Company Ltd. - India
- Malabar Cements Ltd - India
- Kaltim Prima Coal - Indonesia
- Parry Sugars Refinery, India
- Latin American Coal - Colombia
- Indonesian Coal Mining Association
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- San Jose City I Power Corp, Philippines
- Wood Mackenzie - Singapore
- Pendopo Energi Batubara - Indonesia
- Global Coal Blending Company Limited - Australia
- Australian Coal Association
- Vizag Seaport Private Limited - India
- Edison Trading Spa - Italy
- Karaikal Port Pvt Ltd - India
- MS Steel International - UAE
- Directorate General of MIneral and Coal - Indonesia
- Thai Mozambique Logistica
- Kobexindo Tractors - Indoneisa
- Chamber of Mines of South Africa
- Salva Resources Pvt Ltd - India
- Timah Investasi Mineral - Indoneisa
- Heidelberg Cement - Germany
- Thiess Contractors Indonesia
- Cigading International Bulk Terminal - Indonesia
- Agrawal Coal Company - India
- Leighton Contractors Pty Ltd - Australia
- Grasim Industreis Ltd - India
- GAC Shipping (India) Pvt Ltd
- Siam City Cement - Thailand
- Global Green Power PLC Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Economic Council, Georgia
- Rio Tinto Coal - Australia
- PowerSource Philippines DevCo
- Sree Jayajothi Cements Limited - India
- Mintek Dendrill Indonesia
- Gujarat Sidhee Cement - India
- Vedanta Resources Plc - India
- Star Paper Mills Limited - India
- CIMB Investment Bank - Malaysia
- Therma Luzon, Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- PNOC Exploration Corporation - Philippines
- Ambuja Cements Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- OPG Power Generation Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- VISA Power Limited - India
- Barasentosa Lestari - Indonesia
- Indika Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- The University of Queensland
- Commonwealth Bank - Australia
- Kohat Cement Company Ltd. - Pakistan
- IHS Mccloskey Coal Group - USA
- Kapuas Tunggal Persada - Indonesia
- London Commodity Brokers - England
- Bharathi Cement Corporation - India
- Ceylon Electricity Board - Sri Lanka
- Bukit Makmur.PT - Indonesia
- Coal and Oil Company - UAE
- Intertek Mineral Services - Indonesia
|
| |
| |
|
