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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, 21 October 19
COAL TO PLAY SIGNIFICANT ROLE IN SOUTH AFRICA POWER MIX - MINISTER, REUTERS REPORTED
South Africa’s plans for additional power generation over the next decade will involve a variety of energy sources, with coal still playing a ...
Monday, 21 October 19
ULTRAMAX: IN ASIA, TRIPS FROM THE SINGAPORE AREA WERE PAYING BETWEEN $14,000 AND $16,000, DEPENDING ON THE VESSEL SIZE AND DURATION - BALTIC BRIEFING
Capesize
The market traded in a relatively stable supported manner in the Pacific this week while the Atlantic experienced weakening turbulence ...
Friday, 18 October 19
WHY CRUDE TANKER RATES JUST FELL (HALFWAY) BACK TO EARTH - FREIGHT WAVES
Panic drove crude-tanker rates up, very briefly, to mind-bogglingly high assessed levels of around $300,000 per day. Now, the fear factor has been ...
Friday, 18 October 19
SHORT TERM STRENGTH FOR OZ COMMODITIES - BALTIC BRIEFING
Volatility in the global commodity markets is not expected to unduly rattle Australia’s commodity outlook through 2020, but the 2021 picture ...
Friday, 18 October 19
SINGAPORE'S APEX TO LAUNCH LOW-SULFUR FUEL OIL CONTRACT AHEAD OF NEW SHIPPING RULES - REUTERS
Singapore-based Asia Pacific Exchange (APEX) will launch a low-sulfur fuel oil (LSFO) futures contract on Friday aimed at helping shipping and ener ...
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Showing 1306 to 1310 news of total 6871 |
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- Antam Resourcindo - Indonesia
- Wilmar Investment Holdings
- Uttam Galva Steels Limited - India
- Minerals Council of Australia
- Electricity Authority, New Zealand
- Deloitte Consulting - India
- Maheswari Brothers Coal Limited - India
- Bukit Baiduri Energy - Indonesia
- PTC India Limited - India
- Parry Sugars Refinery, India
- International Coal Ventures Pvt Ltd - India
- Xindia Steels Limited - India
- Ministry of Transport, Egypt
- Maharashtra Electricity Regulatory Commission - India
- Sree Jayajothi Cements Limited - India
- Baramulti Group, Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jindal Steel & Power Ltd - India
- Rio Tinto Coal - Australia
- Kapuas Tunggal Persada - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Sindya Power Generating Company Private Ltd
- AsiaOL BioFuels Corp., Philippines
- Petrochimia International Co. Ltd.- Taiwan
- MS Steel International - UAE
- Intertek Mineral Services - Indonesia
- Simpson Spence & Young - Indonesia
- Orica Mining Services - Indonesia
- SMC Global Power, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Banpu Public Company Limited - Thailand
- Electricity Generating Authority of Thailand
- Kideco Jaya Agung - Indonesia
- Toyota Tsusho Corporation, Japan
- New Zealand Coal & Carbon
- Cement Manufacturers Association - India
- Merrill Lynch Commodities Europe
- Sinarmas Energy and Mining - Indonesia
- Energy Development Corp, Philippines
- Trasteel International SA, Italy
- Jorong Barutama Greston.PT - Indonesia
- McConnell Dowell - Australia
- Borneo Indobara - Indonesia
- Savvy Resources Ltd - HongKong
- Ceylon Electricity Board - Sri Lanka
- Miang Besar Coal Terminal - Indonesia
- Chamber of Mines of South Africa
- Bukit Makmur.PT - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Marubeni Corporation - India
- Salva Resources Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Georgia Ports Authority, United States
- Singapore Mercantile Exchange
- Australian Commodity Traders Exchange
- Karbindo Abesyapradhi - Indoneisa
- Coastal Gujarat Power Limited - India
- Tata Chemicals Ltd - India
- Chettinad Cement Corporation Ltd - India
- Ministry of Mines - Canada
- Africa Commodities Group - South Africa
- OPG Power Generation Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Metalloyd Limited - United Kingdom
- Malabar Cements Ltd - India
- Larsen & Toubro Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Power Finance Corporation Ltd., India
- Sical Logistics Limited - India
- Ind-Barath Power Infra Limited - India
- Global Green Power PLC Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Eastern Energy - Thailand
- European Bulk Services B.V. - Netherlands
- Semirara Mining and Power Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- PNOC Exploration Corporation - Philippines
- PowerSource Philippines DevCo
- Renaissance Capital - South Africa
- Sakthi Sugars Limited - India
- Holcim Trading Pte Ltd - Singapore
- Indian Energy Exchange, India
- Thiess Contractors Indonesia
- Planning Commission, India
- TeaM Sual Corporation - Philippines
- ICICI Bank Limited - India
- Ministry of Finance - Indonesia
- Thai Mozambique Logistica
- Timah Investasi Mineral - Indoneisa
- London Commodity Brokers - England
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Petron Corporation, Philippines
- GVK Power & Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- Sojitz Corporation - Japan
- Central Java Power - Indonesia
- Star Paper Mills Limited - India
- Krishnapatnam Port Company Ltd. - India
- Tamil Nadu electricity Board
- San Jose City I Power Corp, Philippines
- Indonesian Coal Mining Association
- Coalindo Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Agrawal Coal Company - India
- Asmin Koalindo Tuhup - Indonesia
- Siam City Cement - Thailand
- GMR Energy Limited - India
- The Treasury - Australian Government
- Romanian Commodities Exchange
- Directorate Of Revenue Intelligence - India
- Global Business Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Latin American Coal - Colombia
- Global Coal Blending Company Limited - Australia
- Vizag Seaport Private Limited - India
- Port Waratah Coal Services - Australia
- Karaikal Port Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Gujarat Mineral Development Corp Ltd - India
- Formosa Plastics Group - Taiwan
- Jaiprakash Power Ventures ltd
- Billiton Holdings Pty Ltd - Australia
- Kalimantan Lumbung Energi - Indonesia
- Mercator Lines Limited - India
- Aboitiz Power Corporation - Philippines
- Semirara Mining Corp, Philippines
- Ambuja Cements Ltd - India
- Kobexindo Tractors - Indoneisa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bharathi Cement Corporation - India
- Lanco Infratech Ltd - India
- Gujarat Sidhee Cement - India
- Mercuria Energy - Indonesia
- Indika Energy - Indonesia
- Commonwealth Bank - Australia
- Samtan Co., Ltd - South Korea
- Offshore Bulk Terminal Pte Ltd, Singapore
- Energy Link Ltd, New Zealand
- Indo Tambangraya Megah - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Videocon Industries ltd - India
- Bulk Trading Sa - Switzerland
- Goldman Sachs - Singapore
- Riau Bara Harum - Indonesia
- Australian Coal Association
- Indian Oil Corporation Limited
- Bhushan Steel Limited - India
- Kartika Selabumi Mining - Indonesia
- Parliament of New Zealand
- Manunggal Multi Energi - Indonesia
- Makarim & Taira - Indonesia
- Grasim Industreis Ltd - India
- CNBM International Corporation - China
- SN Aboitiz Power Inc, Philippines
- Independent Power Producers Association of India
- Leighton Contractors Pty Ltd - Australia
- Heidelberg Cement - Germany
- Medco Energi Mining Internasional
- LBH Netherlands Bv - Netherlands
- Directorate General of MIneral and Coal - Indonesia
- Meenaskhi Energy Private Limited - India
- Standard Chartered Bank - UAE
- Attock Cement Pakistan Limited
- Cigading International Bulk Terminal - Indonesia
- Vedanta Resources Plc - India
- Dalmia Cement Bharat India
- Kohat Cement Company Ltd. - Pakistan
- Altura Mining Limited, Indonesia
- Binh Thuan Hamico - Vietnam
- SMG Consultants - Indonesia
- Orica Australia Pty. Ltd.
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- IEA Clean Coal Centre - UK
- Kepco SPC Power Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Mjunction Services Limited - India
- Mintek Dendrill Indonesia
- Economic Council, Georgia
- India Bulls Power Limited - India
- Bayan Resources Tbk. - Indonesia
- Madhucon Powers Ltd - India
- Oldendorff Carriers - Singapore
- GAC Shipping (India) Pvt Ltd
- Meralco Power Generation, Philippines
- Wood Mackenzie - Singapore
- Barasentosa Lestari - Indonesia
- Globalindo Alam Lestari - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Interocean Group of Companies - India
- Iligan Light & Power Inc, Philippines
- Posco Energy - South Korea
- VISA Power Limited - India
- Bhoruka Overseas - Indonesia
- South Luzon Thermal Energy Corporation
- Coal and Oil Company - UAE
- Straits Asia Resources Limited - Singapore
- Central Electricity Authority - India
- Bhatia International Limited - India
- Eastern Coal Council - USA
- Anglo American - United Kingdom
- IHS Mccloskey Coal Group - USA
- Pipit Mutiara Jaya. PT, Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Edison Trading Spa - Italy
- Sarangani Energy Corporation, Philippines
- Aditya Birla Group - India
- CIMB Investment Bank - Malaysia
- Bangladesh Power Developement Board
- The University of Queensland
- Carbofer General Trading SA - India
- ASAPP Information Group - India
- Bahari Cakrawala Sebuku - Indonesia
- White Energy Company Limited
- Indogreen Group - Indonesia
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