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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
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Monday, 30 December 19
AUSTRALIAN MINERS HIT BY LOWEST THERMAL COAL PRICE IN MORE THAN A DECADE - THE GUARDIAN
Australian coal exporters have experienced the biggest annual drop in thermal coal prices in more than a decade during 2019, raising doubts about i ...
Monday, 30 December 19
INDIA'S COAL IMPORTS RISE 4% TO 161.43 MT IN APRIL-NOVEMBER 2019 - PTI
The country’s coal imports registered an increase of 4.4 per cent to 161.43 million tonnes (MT) in the April-November period of the ongoing f ...
Sunday, 29 December 19
CHINA'S BENCHMARK POWER COAL PRICE EDGES UP - XINHUA
China’s benchmark power coal price rose slightly during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...
Sunday, 29 December 19
IMO 2020 COMPLIANCE: IT'S UP TO US TO BE GOOD CITIZENS - IBIA
One of the concerns around implementation of the 0.50% sulphur limit has been, and continues to be, the need for effective enforcement to ensure a ...
Sunday, 29 December 19
AUSTRALIA SUFFERS WORST OF CHINA'S COAL CURBS AFTER EARLIER BOOM - BLOOMBERG
Australia is bearing the brunt of China’s year-end coal import restrictions, ceding market share to other exporters including Russia and Mong ...
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Showing 1216 to 1220 news of total 6871 |
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- Orica Mining Services - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- TNB Fuel Sdn Bhd - Malaysia
- Deloitte Consulting - India
- Vijayanagar Sugar Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- TeaM Sual Corporation - Philippines
- VISA Power Limited - India
- Petron Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Indo Tambangraya Megah - Indonesia
- Anglo American - United Kingdom
- Sakthi Sugars Limited - India
- Independent Power Producers Association of India
- Iligan Light & Power Inc, Philippines
- Eastern Coal Council - USA
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indogreen Group - Indonesia
- Port Waratah Coal Services - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Planning Commission, India
- Videocon Industries ltd - India
- IHS Mccloskey Coal Group - USA
- Bayan Resources Tbk. - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Singapore Mercantile Exchange
- Australian Coal Association
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sical Logistics Limited - India
- Therma Luzon, Inc, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Xindia Steels Limited - India
- Star Paper Mills Limited - India
- Thai Mozambique Logistica
- Ministry of Mines - Canada
- GMR Energy Limited - India
- Ambuja Cements Ltd - India
- The State Trading Corporation of India Ltd
- MS Steel International - UAE
- Bukit Makmur.PT - Indonesia
- Goldman Sachs - Singapore
- Eastern Energy - Thailand
- Mercuria Energy - Indonesia
- The Treasury - Australian Government
- PowerSource Philippines DevCo
- Sinarmas Energy and Mining - Indonesia
- Indonesian Coal Mining Association
- Central Java Power - Indonesia
- Electricity Authority, New Zealand
- European Bulk Services B.V. - Netherlands
- Globalindo Alam Lestari - Indonesia
- Parliament of New Zealand
- International Coal Ventures Pvt Ltd - India
- Indian Oil Corporation Limited
- Larsen & Toubro Limited - India
- Romanian Commodities Exchange
- Karaikal Port Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Manunggal Multi Energi - Indonesia
- Agrawal Coal Company - India
- Attock Cement Pakistan Limited
- Sindya Power Generating Company Private Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Coastal Gujarat Power Limited - India
- London Commodity Brokers - England
- Sree Jayajothi Cements Limited - India
- SN Aboitiz Power Inc, Philippines
- Commonwealth Bank - Australia
- Aboitiz Power Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Mintek Dendrill Indonesia
- Alfred C Toepfer International GmbH - Germany
- Global Coal Blending Company Limited - Australia
- Wood Mackenzie - Singapore
- Makarim & Taira - Indonesia
- OPG Power Generation Pvt Ltd - India
- Mjunction Services Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Tata Chemicals Ltd - India
- Oldendorff Carriers - Singapore
- Kepco SPC Power Corporation, Philippines
- Standard Chartered Bank - UAE
- Kalimantan Lumbung Energi - Indonesia
- Jaiprakash Power Ventures ltd
- Australian Commodity Traders Exchange
- Africa Commodities Group - South Africa
- Ind-Barath Power Infra Limited - India
- Banpu Public Company Limited - Thailand
- Bhoruka Overseas - Indonesia
- Bhushan Steel Limited - India
- Samtan Co., Ltd - South Korea
- Vedanta Resources Plc - India
- The University of Queensland
- Georgia Ports Authority, United States
- IEA Clean Coal Centre - UK
- Gujarat Sidhee Cement - India
- Trasteel International SA, Italy
- Dalmia Cement Bharat India
- Siam City Cement PLC, Thailand
- Lanco Infratech Ltd - India
- Salva Resources Pvt Ltd - India
- PTC India Limited - India
- Directorate Of Revenue Intelligence - India
- Grasim Industreis Ltd - India
- Central Electricity Authority - India
- Intertek Mineral Services - Indonesia
- Bhatia International Limited - India
- ASAPP Information Group - India
- Bulk Trading Sa - Switzerland
- Medco Energi Mining Internasional
- Minerals Council of Australia
- Aditya Birla Group - India
- Kumho Petrochemical, South Korea
- Sojitz Corporation - Japan
- Siam City Cement - Thailand
- Binh Thuan Hamico - Vietnam
- Sarangani Energy Corporation, Philippines
- Heidelberg Cement - Germany
- Cigading International Bulk Terminal - Indonesia
- Cement Manufacturers Association - India
- Chamber of Mines of South Africa
- Madhucon Powers Ltd - India
- Meralco Power Generation, Philippines
- Jindal Steel & Power Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Straits Asia Resources Limited - Singapore
- Energy Development Corp, Philippines
- Formosa Plastics Group - Taiwan
- Billiton Holdings Pty Ltd - Australia
- Miang Besar Coal Terminal - Indonesia
- Merrill Lynch Commodities Europe
- Kideco Jaya Agung - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Coalindo Energy - Indonesia
- Barasentosa Lestari - Indonesia
- Carbofer General Trading SA - India
- Malabar Cements Ltd - India
- Bukit Baiduri Energy - Indonesia
- Orica Australia Pty. Ltd.
- San Jose City I Power Corp, Philippines
- Uttam Galva Steels Limited - India
- Gujarat Electricity Regulatory Commission - India
- Maheswari Brothers Coal Limited - India
- Parry Sugars Refinery, India
- Thiess Contractors Indonesia
- Renaissance Capital - South Africa
- Karbindo Abesyapradhi - Indoneisa
- Chettinad Cement Corporation Ltd - India
- LBH Netherlands Bv - Netherlands
- India Bulls Power Limited - India
- Metalloyd Limited - United Kingdom
- Price Waterhouse Coopers - Russia
- Baramulti Group, Indonesia
- Bharathi Cement Corporation - India
- New Zealand Coal & Carbon
- CIMB Investment Bank - Malaysia
- Mercator Lines Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Semirara Mining Corp, Philippines
- Meenaskhi Energy Private Limited - India
- Edison Trading Spa - Italy
- SMC Global Power, Philippines
- CNBM International Corporation - China
- PetroVietnam Power Coal Import and Supply Company
- Indika Energy - Indonesia
- Antam Resourcindo - Indonesia
- Electricity Generating Authority of Thailand
- Kartika Selabumi Mining - Indonesia
- Tamil Nadu electricity Board
- Interocean Group of Companies - India
- SMG Consultants - Indonesia
- Indian Energy Exchange, India
- Petrochimia International Co. Ltd.- Taiwan
- Riau Bara Harum - Indonesia
- Global Business Power Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Economic Council, Georgia
- Ministry of Transport, Egypt
- Kapuas Tunggal Persada - Indonesia
- White Energy Company Limited
- PNOC Exploration Corporation - Philippines
- Savvy Resources Ltd - HongKong
- Power Finance Corporation Ltd., India
- Kobexindo Tractors - Indoneisa
- Coal and Oil Company - UAE
- Leighton Contractors Pty Ltd - Australia
- Ministry of Finance - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- South Luzon Thermal Energy Corporation
- Energy Link Ltd, New Zealand
- Rashtriya Ispat Nigam Limited - India
- Toyota Tsusho Corporation, Japan
- Krishnapatnam Port Company Ltd. - India
- Marubeni Corporation - India
- ICICI Bank Limited - India
- Borneo Indobara - Indonesia
- Latin American Coal - Colombia
- GVK Power & Infra Limited - India
- Posco Energy - South Korea
- Altura Mining Limited, Indonesia
- Global Green Power PLC Corporation, Philippines
- Vizag Seaport Private Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Rio Tinto Coal - Australia
- Bangladesh Power Developement Board
- Holcim Trading Pte Ltd - Singapore
- Wilmar Investment Holdings
- Kaltim Prima Coal - Indonesia
- McConnell Dowell - Australia
- Gujarat Mineral Development Corp Ltd - India
- Essar Steel Hazira Ltd - India
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