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.
|
|
Friday, 14 February 20
IS THE US COAL INDUSTRY COMPLETELY BURNED OUT? -FORBES
This is the fourth of a multi-part series on the state of the main sources of energy in the US and how they compare globally. The series will cover ...
Friday, 14 February 20
FITCH RTGS: GLOBAL PORTS VULNERABLE TO CORONAVIRUS - RELATED VOLUME DECLINES
Global ports will see reduced trade volumes as a result of the coronavirus, COVID-19, which would become more severe should Chinese production take ...
Thursday, 13 February 20
INDIA: MAJOR PORTS SHOW MUTED GROWTH IN CARGO AS THERMAL COAL VOLUME SLIDES 15% - BUSINESS STANDARD
A sharp slide of 15 per cent in thermal coal volumes weighed on the performance of major ports during the period of April-January of FY20. The majo ...
Wednesday, 12 February 20
REFINING SET FOR A CHALLENGING 2020 - WOOD MACKENZIE
Downstream isn’t the glamorous end of the oil business. And in Big Oil, it’s typically dwarfed by upstream. Yet having been forced to r ...
Wednesday, 12 February 20
COAL INDIA WILL EXCEED LAST YEAR'S PRODUCTION FIGURES: OFFICIAL - PTI
Despite coal production being hampered at Dipka mines due to prolonged rains, Coal India Ltd will exceed last year’s production figures, a to ...
|
|
|
Showing 1136 to 1140 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Holcim Trading Pte Ltd - Singapore
- Bayan Resources Tbk. - Indonesia
- Eastern Coal Council - USA
- Kaltim Prima Coal - Indonesia
- TeaM Sual Corporation - Philippines
- Orica Mining Services - Indonesia
- Bulk Trading Sa - Switzerland
- Sarangani Energy Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- Manunggal Multi Energi - Indonesia
- SMC Global Power, Philippines
- Krishnapatnam Port Company Ltd. - India
- Petrochimia International Co. Ltd.- Taiwan
- Power Finance Corporation Ltd., India
- Karaikal Port Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Leighton Contractors Pty Ltd - Australia
- GVK Power & Infra Limited - India
- Jaiprakash Power Ventures ltd
- Baramulti Group, Indonesia
- Siam City Cement PLC, Thailand
- Kepco SPC Power Corporation, Philippines
- Posco Energy - South Korea
- Central Java Power - Indonesia
- Chamber of Mines of South Africa
- Rashtriya Ispat Nigam Limited - India
- Meralco Power Generation, Philippines
- Port Waratah Coal Services - Australia
- Petron Corporation, Philippines
- London Commodity Brokers - England
- CIMB Investment Bank - Malaysia
- Romanian Commodities Exchange
- Edison Trading Spa - Italy
- Madhucon Powers Ltd - India
- GAC Shipping (India) Pvt Ltd
- Semirara Mining Corp, Philippines
- Kumho Petrochemical, South Korea
- Videocon Industries ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- The Treasury - Australian Government
- Electricity Authority, New Zealand
- Kapuas Tunggal Persada - Indonesia
- Indo Tambangraya Megah - Indonesia
- New Zealand Coal & Carbon
- Aditya Birla Group - India
- Anglo American - United Kingdom
- Miang Besar Coal Terminal - Indonesia
- Star Paper Mills Limited - India
- Deloitte Consulting - India
- Mjunction Services Limited - India
- Australian Coal Association
- IEA Clean Coal Centre - UK
- Directorate Of Revenue Intelligence - India
- Commonwealth Bank - Australia
- Global Coal Blending Company Limited - Australia
- Mintek Dendrill Indonesia
- Tata Chemicals Ltd - India
- Goldman Sachs - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Therma Luzon, Inc, Philippines
- Electricity Generating Authority of Thailand
- OPG Power Generation Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Central Electricity Authority - India
- Thai Mozambique Logistica
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sical Logistics Limited - India
- Altura Mining Limited, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Xindia Steels Limited - India
- Kartika Selabumi Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Energy Link Ltd, New Zealand
- Pendopo Energi Batubara - Indonesia
- Carbofer General Trading SA - India
- Kohat Cement Company Ltd. - Pakistan
- Vijayanagar Sugar Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Singapore Mercantile Exchange
- Gujarat Electricity Regulatory Commission - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mercuria Energy - Indonesia
- Wood Mackenzie - Singapore
- Uttam Galva Steels Limited - India
- Bukit Makmur.PT - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Indika Energy - Indonesia
- Dalmia Cement Bharat India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Iligan Light & Power Inc, Philippines
- Independent Power Producers Association of India
- Cigading International Bulk Terminal - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Planning Commission, India
- Kobexindo Tractors - Indoneisa
- Agrawal Coal Company - India
- PetroVietnam Power Coal Import and Supply Company
- Ministry of Finance - Indonesia
- Heidelberg Cement - Germany
- Indian Energy Exchange, India
- Rio Tinto Coal - Australia
- Vedanta Resources Plc - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jindal Steel & Power Ltd - India
- Gujarat Sidhee Cement - India
- Economic Council, Georgia
- Malabar Cements Ltd - India
- San Jose City I Power Corp, Philippines
- Borneo Indobara - Indonesia
- Ministry of Transport, Egypt
- Banpu Public Company Limited - Thailand
- Barasentosa Lestari - Indonesia
- IHS Mccloskey Coal Group - USA
- GN Power Mariveles Coal Plant, Philippines
- Coastal Gujarat Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Meenaskhi Energy Private Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sojitz Corporation - Japan
- Bhoruka Overseas - Indonesia
- The University of Queensland
- Timah Investasi Mineral - Indoneisa
- Sindya Power Generating Company Private Ltd
- Indian Oil Corporation Limited
- Renaissance Capital - South Africa
- The State Trading Corporation of India Ltd
- Vizag Seaport Private Limited - India
- Sinarmas Energy and Mining - Indonesia
- Wilmar Investment Holdings
- Sakthi Sugars Limited - India
- Australian Commodity Traders Exchange
- Lanco Infratech Ltd - India
- Orica Australia Pty. Ltd.
- Directorate General of MIneral and Coal - Indonesia
- Kideco Jaya Agung - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Riau Bara Harum - Indonesia
- Essar Steel Hazira Ltd - India
- Indogreen Group - Indonesia
- VISA Power Limited - India
- Eastern Energy - Thailand
- Energy Development Corp, Philippines
- SMG Consultants - Indonesia
- Georgia Ports Authority, United States
- ASAPP Information Group - India
- Bahari Cakrawala Sebuku - Indonesia
- Merrill Lynch Commodities Europe
- Parry Sugars Refinery, India
- Global Green Power PLC Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Global Business Power Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Antam Resourcindo - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- White Energy Company Limited
- Mercator Lines Limited - India
- Interocean Group of Companies - India
- Bharathi Cement Corporation - India
- Intertek Mineral Services - Indonesia
- Medco Energi Mining Internasional
- Billiton Holdings Pty Ltd - Australia
- Tamil Nadu electricity Board
- PowerSource Philippines DevCo
- Standard Chartered Bank - UAE
- Larsen & Toubro Limited - India
- Attock Cement Pakistan Limited
- Minerals Council of Australia
- MS Steel International - UAE
- Ambuja Cements Ltd - India
- Maheswari Brothers Coal Limited - India
- ICICI Bank Limited - India
- Coal and Oil Company - UAE
- Sree Jayajothi Cements Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Samtan Co., Ltd - South Korea
- Africa Commodities Group - South Africa
- Ceylon Electricity Board - Sri Lanka
- Aboitiz Power Corporation - Philippines
- Thiess Contractors Indonesia
- Straits Asia Resources Limited - Singapore
- Siam City Cement - Thailand
- Cement Manufacturers Association - India
- Alfred C Toepfer International GmbH - Germany
- Bangladesh Power Developement Board
- Coalindo Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Price Waterhouse Coopers - Russia
- Binh Thuan Hamico - Vietnam
- India Bulls Power Limited - India
- Metalloyd Limited - United Kingdom
- Marubeni Corporation - India
- South Luzon Thermal Energy Corporation
- Grasim Industreis Ltd - India
- Latin American Coal - Colombia
- Simpson Spence & Young - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Parliament of New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Bhatia International Limited - India
- Bhushan Steel Limited - India
- Ministry of Mines - Canada
- Semirara Mining and Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- PTC India Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- McConnell Dowell - Australia
- Trasteel International SA, Italy
- Makarim & Taira - Indonesia
- Chettinad Cement Corporation Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- PNOC Exploration Corporation - Philippines
- Indonesian Coal Mining Association
- CNBM International Corporation - China
- GMR Energy Limited - India
- SN Aboitiz Power Inc, Philippines
|
| |
| |
|
