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.
|
|
Saturday, 01 February 20
COAL IS NOT GOING ANYWHERE - MINING REVIEW
The coal sector is living under the constant threat of being blamed by environmentalists as being responsible for a world disaster called global wa ...
Saturday, 01 February 20
CIL PRODUCTION TO NOT EXCEED 640 MILLION TON IN FY20: OFFICIAL - PTI
Hit by disruptions due to a prolonged monsoon, mining major Coal India Ltd’s production in the current fiscal will not exceed 640 million ton ...
Saturday, 01 February 20
WHO PAYS FOR IMO 2020? - FREIGHT WAVES
The United Nations’ International Maritime Organization (IMO) implemented its low-sulfur fuel mandate on January 1, 2020. Full enforcement be ...
Friday, 31 January 20
EIA EXPECTS U.S. ELECTRICITY GENERATION FROM RENEWABLES TO SOON SURPASS NUCLEAR AND COAL
In the latest long-term projections, the U.S Energy Information Administration (EIA) projects electricity generation from renewable sources such as ...
Thursday, 30 January 20
PRIVATE SECTOR COMPANIES SEEK 'LEVEL PLAYING FIELD' FOR COAL BLOCK AUCTION - PTI
Private sector companies scouting opportunities for commercial coal mining in the country are seeking a “level playing field” to encour ...
|
|
|
Showing 1161 to 1165 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Oldendorff Carriers - Singapore
- Iligan Light & Power Inc, Philippines
- Star Paper Mills Limited - India
- Indian Oil Corporation Limited
- San Jose City I Power Corp, Philippines
- Essar Steel Hazira Ltd - India
- Energy Link Ltd, New Zealand
- Tamil Nadu electricity Board
- Ceylon Electricity Board - Sri Lanka
- Toyota Tsusho Corporation, Japan
- Edison Trading Spa - Italy
- MS Steel International - UAE
- Thiess Contractors Indonesia
- Bharathi Cement Corporation - India
- VISA Power Limited - India
- Bulk Trading Sa - Switzerland
- Maharashtra Electricity Regulatory Commission - India
- CNBM International Corporation - China
- Trasteel International SA, Italy
- Madhucon Powers Ltd - India
- Simpson Spence & Young - Indonesia
- PowerSource Philippines DevCo
- Wood Mackenzie - Singapore
- Bhatia International Limited - India
- Metalloyd Limited - United Kingdom
- Standard Chartered Bank - UAE
- GMR Energy Limited - India
- Bukit Baiduri Energy - Indonesia
- Jindal Steel & Power Ltd - India
- Rio Tinto Coal - Australia
- Kaltim Prima Coal - Indonesia
- Goldman Sachs - Singapore
- Altura Mining Limited, Indonesia
- Independent Power Producers Association of India
- ASAPP Information Group - India
- Chettinad Cement Corporation Ltd - India
- Manunggal Multi Energi - Indonesia
- Ministry of Transport, Egypt
- Sakthi Sugars Limited - India
- Port Waratah Coal Services - Australia
- Price Waterhouse Coopers - Russia
- GAC Shipping (India) Pvt Ltd
- Agrawal Coal Company - India
- Indika Energy - Indonesia
- Videocon Industries ltd - India
- Cigading International Bulk Terminal - Indonesia
- Kepco SPC Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Anglo American - United Kingdom
- Kapuas Tunggal Persada - Indonesia
- Sojitz Corporation - Japan
- International Coal Ventures Pvt Ltd - India
- Thai Mozambique Logistica
- Commonwealth Bank - Australia
- Karbindo Abesyapradhi - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Singapore Mercantile Exchange
- Bahari Cakrawala Sebuku - Indonesia
- Energy Development Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Global Green Power PLC Corporation, Philippines
- Borneo Indobara - Indonesia
- Rashtriya Ispat Nigam Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Orica Australia Pty. Ltd.
- Samtan Co., Ltd - South Korea
- SMG Consultants - Indonesia
- Vedanta Resources Plc - India
- Electricity Generating Authority of Thailand
- Global Business Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Savvy Resources Ltd - HongKong
- Asmin Koalindo Tuhup - Indonesia
- Indogreen Group - Indonesia
- Minerals Council of Australia
- Antam Resourcindo - Indonesia
- Bhoruka Overseas - Indonesia
- Meralco Power Generation, Philippines
- IHS Mccloskey Coal Group - USA
- Makarim & Taira - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Lanco Infratech Ltd - India
- PTC India Limited - India
- Bhushan Steel Limited - India
- Barasentosa Lestari - Indonesia
- European Bulk Services B.V. - Netherlands
- Formosa Plastics Group - Taiwan
- Australian Coal Association
- New Zealand Coal & Carbon
- McConnell Dowell - Australia
- IEA Clean Coal Centre - UK
- Mercator Lines Limited - India
- Eastern Coal Council - USA
- Semirara Mining and Power Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Aditya Birla Group - India
- Medco Energi Mining Internasional
- Aboitiz Power Corporation - Philippines
- Bayan Resources Tbk. - Indonesia
- Xindia Steels Limited - India
- Sindya Power Generating Company Private Ltd
- London Commodity Brokers - England
- Deloitte Consulting - India
- Kartika Selabumi Mining - Indonesia
- Larsen & Toubro Limited - India
- Mintek Dendrill Indonesia
- Sinarmas Energy and Mining - Indonesia
- Planning Commission, India
- Gujarat Sidhee Cement - India
- TeaM Sual Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Miang Besar Coal Terminal - Indonesia
- White Energy Company Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coalindo Energy - Indonesia
- CIMB Investment Bank - Malaysia
- The State Trading Corporation of India Ltd
- Tata Chemicals Ltd - India
- GVK Power & Infra Limited - India
- Coastal Gujarat Power Limited - India
- Georgia Ports Authority, United States
- Bukit Makmur.PT - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Salva Resources Pvt Ltd - India
- Posco Energy - South Korea
- Merrill Lynch Commodities Europe
- Jorong Barutama Greston.PT - Indonesia
- Karaikal Port Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Orica Mining Services - Indonesia
- Holcim Trading Pte Ltd - Singapore
- The University of Queensland
- Renaissance Capital - South Africa
- Leighton Contractors Pty Ltd - Australia
- Mjunction Services Limited - India
- Kobexindo Tractors - Indoneisa
- Siam City Cement PLC, Thailand
- Central Java Power - Indonesia
- Straits Asia Resources Limited - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- OPG Power Generation Pvt Ltd - India
- Eastern Energy - Thailand
- Binh Thuan Hamico - Vietnam
- Coal and Oil Company - UAE
- Central Electricity Authority - India
- Kumho Petrochemical, South Korea
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Intertek Mineral Services - Indonesia
- Ministry of Finance - Indonesia
- India Bulls Power Limited - India
- AsiaOL BioFuels Corp., Philippines
- ICICI Bank Limited - India
- South Luzon Thermal Energy Corporation
- PetroVietnam Power Coal Import and Supply Company
- Africa Commodities Group - South Africa
- Dalmia Cement Bharat India
- Ministry of Mines - Canada
- Kohat Cement Company Ltd. - Pakistan
- Meenaskhi Energy Private Limited - India
- Petron Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Sical Logistics Limited - India
- Pendopo Energi Batubara - Indonesia
- Chamber of Mines of South Africa
- SMC Global Power, Philippines
- Power Finance Corporation Ltd., India
- Mercuria Energy - Indonesia
- Vizag Seaport Private Limited - India
- Krishnapatnam Port Company Ltd. - India
- Globalindo Alam Lestari - Indonesia
- Uttam Galva Steels Limited - India
- Romanian Commodities Exchange
- Electricity Authority, New Zealand
- Economic Council, Georgia
- TNB Fuel Sdn Bhd - Malaysia
- Timah Investasi Mineral - Indoneisa
- Gujarat Electricity Regulatory Commission - India
- Latin American Coal - Colombia
- Parry Sugars Refinery, India
- Indonesian Coal Mining Association
- Gujarat Mineral Development Corp Ltd - India
- Cement Manufacturers Association - India
- Sarangani Energy Corporation, Philippines
- Australian Commodity Traders Exchange
- Banpu Public Company Limited - Thailand
- Parliament of New Zealand
- The Treasury - Australian Government
- Grasim Industreis Ltd - India
- Wilmar Investment Holdings
- Siam City Cement - Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ambuja Cements Ltd - India
- Bangladesh Power Developement Board
- Bukit Asam (Persero) Tbk - Indonesia
- Semirara Mining Corp, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Heidelberg Cement - Germany
- Therma Luzon, Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indo Tambangraya Megah - Indonesia
- Indian Energy Exchange, India
- Baramulti Group, Indonesia
- Maheswari Brothers Coal Limited - India
- Ind-Barath Power Infra Limited - India
- Attock Cement Pakistan Limited
- Carbofer General Trading SA - India
- Alfred C Toepfer International GmbH - Germany
- Malabar Cements Ltd - India
- Interocean Group of Companies - India
- Directorate Of Revenue Intelligence - India
- Kideco Jaya Agung - Indonesia
- Riau Bara Harum - Indonesia
- Marubeni Corporation - India
|
| |
| |
|
