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.
|
|
Monday, 25 November 19
COAL SUPPLY BY CIL TO POWER SECTOR DROPS OVER 8 PC TO 253 MT IN APRIL-OCTOBER - PTI
Supply of coal by state-owned CIL to the power sector registered a decline of 8.5 per cent to 253 million tonnes in the April-October period of thi ...
Monday, 25 November 19
A 53,000DWT SHIP FIXED AT $9,500 DELIVERY SINGAPORE TRIP, VIA INDONESIA, REDELIVERY VIETNAM - BALTIC BRIEFING
Capesize
After a week of value being eroded on the Capesize market, Friday brought improved sentiment across most of the routes. The 5TC averag ...
Monday, 25 November 19
KOWEPO INVITED 6.79 MILLION TONS OF (SUB)BITUMINOUS STEAM COAL BIDS
COALspot.com: South Korea’s Korea Western Power Co., Ltd. (KOWEPO) has issued an international tender for 6,798,000 tons of coal for 5 years ...
Friday, 22 November 19
CHINA'S BENCHMARK POWER COAL PRICE REMAINS FLAT - XINHUA
China’s benchmark power coal price remained flat during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...
Friday, 22 November 19
FORTY PERCENT OF ADARO'S COAL SALES VOLUME IN 9M19 GOES TO THE SOUTHEAST ASIA REGION
PT Adaro Energy Tbk released its consolidated financial statements yesterday, for the nine month period, ending September 30, 2019.
...
|
|
|
Showing 1271 to 1275 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Vedanta Resources Plc - India
- Carbofer General Trading SA - India
- Kohat Cement Company Ltd. - Pakistan
- Aditya Birla Group - India
- Wood Mackenzie - Singapore
- Therma Luzon, Inc, Philippines
- Eastern Energy - Thailand
- Singapore Mercantile Exchange
- Latin American Coal - Colombia
- Ind-Barath Power Infra Limited - India
- Australian Commodity Traders Exchange
- Edison Trading Spa - Italy
- Ministry of Transport, Egypt
- Tamil Nadu electricity Board
- Manunggal Multi Energi - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Siam City Cement - Thailand
- Grasim Industreis Ltd - India
- South Luzon Thermal Energy Corporation
- Simpson Spence & Young - Indonesia
- Riau Bara Harum - Indonesia
- Videocon Industries ltd - India
- Timah Investasi Mineral - Indoneisa
- Central Java Power - Indonesia
- Bayan Resources Tbk. - Indonesia
- Global Green Power PLC Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- SN Aboitiz Power Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Rashtriya Ispat Nigam Limited - India
- Ceylon Electricity Board - Sri Lanka
- Thiess Contractors Indonesia
- Makarim & Taira - Indonesia
- Samtan Co., Ltd - South Korea
- Star Paper Mills Limited - India
- Leighton Contractors Pty Ltd - Australia
- Madhucon Powers Ltd - India
- Energy Link Ltd, New Zealand
- Gujarat Sidhee Cement - India
- Dalmia Cement Bharat India
- The State Trading Corporation of India Ltd
- Medco Energi Mining Internasional
- Toyota Tsusho Corporation, Japan
- Petrochimia International Co. Ltd.- Taiwan
- Chettinad Cement Corporation Ltd - India
- Indogreen Group - Indonesia
- Sical Logistics Limited - India
- McConnell Dowell - Australia
- PTC India Limited - India
- Cement Manufacturers Association - India
- Merrill Lynch Commodities Europe
- IEA Clean Coal Centre - UK
- Altura Mining Limited, Indonesia
- Cigading International Bulk Terminal - Indonesia
- Port Waratah Coal Services - Australia
- Kalimantan Lumbung Energi - Indonesia
- Indonesian Coal Mining Association
- Salva Resources Pvt Ltd - India
- Mercator Lines Limited - India
- VISA Power Limited - India
- The Treasury - Australian Government
- SMC Global Power, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- TeaM Sual Corporation - Philippines
- Orica Mining Services - Indonesia
- Intertek Mineral Services - Indonesia
- Vizag Seaport Private Limited - India
- Heidelberg Cement - Germany
- Karaikal Port Pvt Ltd - India
- Thai Mozambique Logistica
- Billiton Holdings Pty Ltd - Australia
- Bulk Trading Sa - Switzerland
- Parry Sugars Refinery, India
- Gujarat Electricity Regulatory Commission - India
- Aboitiz Power Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Eastern Coal Council - USA
- Maheswari Brothers Coal Limited - India
- Sakthi Sugars Limited - India
- Posco Energy - South Korea
- GVK Power & Infra Limited - India
- Directorate Of Revenue Intelligence - India
- Alfred C Toepfer International GmbH - Germany
- Indian Oil Corporation Limited
- Electricity Generating Authority of Thailand
- Bharathi Cement Corporation - India
- Coastal Gujarat Power Limited - India
- Meralco Power Generation, Philippines
- Chamber of Mines of South Africa
- Standard Chartered Bank - UAE
- Interocean Group of Companies - India
- CNBM International Corporation - China
- Economic Council, Georgia
- Goldman Sachs - Singapore
- Xindia Steels Limited - India
- Pendopo Energi Batubara - Indonesia
- Banpu Public Company Limited - Thailand
- Holcim Trading Pte Ltd - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Essar Steel Hazira Ltd - India
- Indian Energy Exchange, India
- Romanian Commodities Exchange
- Kartika Selabumi Mining - Indonesia
- Mjunction Services Limited - India
- Attock Cement Pakistan Limited
- Independent Power Producers Association of India
- IHS Mccloskey Coal Group - USA
- Electricity Authority, New Zealand
- Renaissance Capital - South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- Larsen & Toubro Limited - India
- Karbindo Abesyapradhi - Indoneisa
- GAC Shipping (India) Pvt Ltd
- Kideco Jaya Agung - Indonesia
- GMR Energy Limited - India
- Kumho Petrochemical, South Korea
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sree Jayajothi Cements Limited - India
- Minerals Council of Australia
- Jaiprakash Power Ventures ltd
- Iligan Light & Power Inc, Philippines
- Ministry of Mines - Canada
- Africa Commodities Group - South Africa
- Borneo Indobara - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Antam Resourcindo - Indonesia
- PowerSource Philippines DevCo
- SMG Consultants - Indonesia
- Bukit Baiduri Energy - Indonesia
- Commonwealth Bank - Australia
- Georgia Ports Authority, United States
- Australian Coal Association
- Lanco Infratech Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Bhatia International Limited - India
- Straits Asia Resources Limited - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Central Electricity Authority - India
- Ministry of Finance - Indonesia
- Binh Thuan Hamico - Vietnam
- PNOC Exploration Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- Sinarmas Energy and Mining - Indonesia
- Global Business Power Corporation, Philippines
- Sojitz Corporation - Japan
- Indika Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Parliament of New Zealand
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Malabar Cements Ltd - India
- Formosa Plastics Group - Taiwan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- MS Steel International - UAE
- Agrawal Coal Company - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- London Commodity Brokers - England
- India Bulls Power Limited - India
- Baramulti Group, Indonesia
- Wilmar Investment Holdings
- Bahari Cakrawala Sebuku - Indonesia
- CIMB Investment Bank - Malaysia
- Ambuja Cements Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Tata Chemicals Ltd - India
- LBH Netherlands Bv - Netherlands
- ASAPP Information Group - India
- Pipit Mutiara Jaya. PT, Indonesia
- Bangladesh Power Developement Board
- Bhoruka Overseas - Indonesia
- Orica Australia Pty. Ltd.
- Semirara Mining Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- Coalindo Energy - Indonesia
- The University of Queensland
- Sarangani Energy Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- White Energy Company Limited
- Mintek Dendrill Indonesia
- Jindal Steel & Power Ltd - India
- Global Coal Blending Company Limited - Australia
- Mercuria Energy - Indonesia
- Power Finance Corporation Ltd., India
- Rio Tinto Coal - Australia
- New Zealand Coal & Carbon
- Deloitte Consulting - India
- Miang Besar Coal Terminal - Indonesia
- Globalindo Alam Lestari - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Kobexindo Tractors - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- Coal and Oil Company - UAE
- Siam City Cement PLC, Thailand
- Petron Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Energy Development Corp, Philippines
- Metalloyd Limited - United Kingdom
- Oldendorff Carriers - Singapore
- Trasteel International SA, Italy
- Marubeni Corporation - India
- Anglo American - United Kingdom
- ICICI Bank Limited - India
- Meenaskhi Energy Private Limited - India
- Planning Commission, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- San Jose City I Power Corp, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Kaltim Prima Coal - Indonesia
- European Bulk Services B.V. - Netherlands
- Uttam Galva Steels Limited - India
- Bhushan Steel Limited - India
- Jorong Barutama Greston.PT - Indonesia
|
| |
| |
|
