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, 14 October 19
WINTER OIL MARKET OUTLOOK - OPEC
Product markets in the last two months have benefitted from seasonal maintenance which have led to a tighter product market environment, providing ...
Sunday, 13 October 19
INDONESIA: PANAMAX VESSELS OPEN SOUTH CHINA WERE REPORTEDLY FIXED AT $14,000 LEVEL, WITH REDELIVERY BACK IN CHINA - BALTIC BRIEFING
Capesize
The Capesize market managed to find a floor and rally a little this week after several weeks of declines. While the West Australia to ...
Friday, 11 October 19
INDIAN MINERS REJECT PLAN TO LINK NATIONAL COAL INDEX TO FOREIGN PRICES - REUTERS
India’s miners are rejecting a government proposal to establish a national coal index that would be linked to international prices, documents ...
Friday, 11 October 19
THE OCTOBER BENCHMARK PRICE OF INDONESIAN THERMAL COAL DECLINES TO LOWEST SINCE OCTOBER 2016
COALspot.com: The Ministry of Energy and Mineral Resources of the Republic of Indonesia has revised down the benchmark price of Indonesian thermal ...
Friday, 11 October 19
KOREA SOUTH-EAST POWER TO IMPORT LCV COAL IN NOVEMBER
COALspot.com: South Korea’s Korea South-East Power Co., Ltd. (KOEN) has issued an international tender for 75,000 Metric Tons low calorific v ...
|
|
|
Showing 1316 to 1320 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- San Jose City I Power Corp, Philippines
- Anglo American - United Kingdom
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Semirara Mining and Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Cigading International Bulk Terminal - Indonesia
- Bhatia International Limited - India
- PowerSource Philippines DevCo
- Global Coal Blending Company Limited - Australia
- Salva Resources Pvt Ltd - India
- Siam City Cement - Thailand
- ICICI Bank Limited - India
- Tamil Nadu electricity Board
- Energy Link Ltd, New Zealand
- Vizag Seaport Private Limited - India
- Uttam Galva Steels Limited - India
- Sindya Power Generating Company Private Ltd
- Planning Commission, India
- TNB Fuel Sdn Bhd - Malaysia
- GMR Energy Limited - India
- Savvy Resources Ltd - HongKong
- London Commodity Brokers - England
- Minerals Council of Australia
- Alfred C Toepfer International GmbH - Germany
- Tata Chemicals Ltd - India
- Bayan Resources Tbk. - Indonesia
- Bhoruka Overseas - Indonesia
- Dalmia Cement Bharat India
- Kumho Petrochemical, South Korea
- Jaiprakash Power Ventures ltd
- GVK Power & Infra Limited - India
- Global Business Power Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Larsen & Toubro Limited - India
- IHS Mccloskey Coal Group - USA
- Australian Coal Association
- Indian Oil Corporation Limited
- CIMB Investment Bank - Malaysia
- Maheswari Brothers Coal Limited - India
- Grasim Industreis Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Medco Energi Mining Internasional
- Krishnapatnam Port Company Ltd. - India
- Siam City Cement PLC, Thailand
- Aditya Birla Group - India
- Timah Investasi Mineral - Indoneisa
- Coastal Gujarat Power Limited - India
- Kideco Jaya Agung - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- VISA Power Limited - India
- Directorate General of MIneral and Coal - Indonesia
- MS Steel International - UAE
- Coal and Oil Company - UAE
- Parliament of New Zealand
- Latin American Coal - Colombia
- OPG Power Generation Pvt Ltd - India
- Vedanta Resources Plc - India
- Mercuria Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ministry of Mines - Canada
- Renaissance Capital - South Africa
- TeaM Sual Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- The State Trading Corporation of India Ltd
- SN Aboitiz Power Inc, Philippines
- IEA Clean Coal Centre - UK
- Indonesian Coal Mining Association
- Directorate Of Revenue Intelligence - India
- Price Waterhouse Coopers - Russia
- Binh Thuan Hamico - Vietnam
- Sojitz Corporation - Japan
- Chettinad Cement Corporation Ltd - India
- Sical Logistics Limited - India
- Gujarat Sidhee Cement - India
- Intertek Mineral Services - Indonesia
- Wilmar Investment Holdings
- Mintek Dendrill Indonesia
- Merrill Lynch Commodities Europe
- CNBM International Corporation - China
- Bhushan Steel Limited - India
- Electricity Generating Authority of Thailand
- Rio Tinto Coal - Australia
- Bukit Makmur.PT - Indonesia
- Chamber of Mines of South Africa
- Maharashtra Electricity Regulatory Commission - India
- Ambuja Cements Ltd - India
- Essar Steel Hazira Ltd - India
- Power Finance Corporation Ltd., India
- Africa Commodities Group - South Africa
- Star Paper Mills Limited - India
- Bukit Baiduri Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Ind-Barath Power Infra Limited - India
- Formosa Plastics Group - Taiwan
- Globalindo Alam Lestari - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Banpu Public Company Limited - Thailand
- Orica Mining Services - Indonesia
- Deloitte Consulting - India
- Straits Asia Resources Limited - Singapore
- Posco Energy - South Korea
- Jorong Barutama Greston.PT - Indonesia
- Economic Council, Georgia
- SMC Global Power, Philippines
- Karaikal Port Pvt Ltd - India
- Parry Sugars Refinery, India
- Karbindo Abesyapradhi - Indoneisa
- Rashtriya Ispat Nigam Limited - India
- Petron Corporation, Philippines
- Attock Cement Pakistan Limited
- Georgia Ports Authority, United States
- Manunggal Multi Energi - Indonesia
- Simpson Spence & Young - Indonesia
- Agrawal Coal Company - India
- Singapore Mercantile Exchange
- Antam Resourcindo - Indonesia
- Toyota Tsusho Corporation, Japan
- Kobexindo Tractors - Indoneisa
- Romanian Commodities Exchange
- Gujarat Electricity Regulatory Commission - India
- Neyveli Lignite Corporation Ltd, - India
- Global Green Power PLC Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- SMG Consultants - Indonesia
- Ministry of Transport, Egypt
- Meralco Power Generation, Philippines
- Madhucon Powers Ltd - India
- Lanco Infratech Ltd - India
- Australian Commodity Traders Exchange
- Independent Power Producers Association of India
- GAC Shipping (India) Pvt Ltd
- Bulk Trading Sa - Switzerland
- Thiess Contractors Indonesia
- AsiaOL BioFuels Corp., Philippines
- McConnell Dowell - Australia
- Eastern Coal Council - USA
- Sree Jayajothi Cements Limited - India
- Kapuas Tunggal Persada - Indonesia
- Xindia Steels Limited - India
- Sarangani Energy Corporation, Philippines
- Baramulti Group, Indonesia
- Orica Australia Pty. Ltd.
- Malabar Cements Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Electricity Authority, New Zealand
- Bharathi Cement Corporation - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Leighton Contractors Pty Ltd - Australia
- Wood Mackenzie - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Trasteel International SA, Italy
- Carbofer General Trading SA - India
- Indo Tambangraya Megah - Indonesia
- Mjunction Services Limited - India
- Heidelberg Cement - Germany
- Thai Mozambique Logistica
- Sakthi Sugars Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- New Zealand Coal & Carbon
- India Bulls Power Limited - India
- Energy Development Corp, Philippines
- Indogreen Group - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Borneo Indobara - Indonesia
- Cement Manufacturers Association - India
- Makarim & Taira - Indonesia
- LBH Netherlands Bv - Netherlands
- Interocean Group of Companies - India
- Oldendorff Carriers - Singapore
- Bangladesh Power Developement Board
- Goldman Sachs - Singapore
- Commonwealth Bank - Australia
- The University of Queensland
- Riau Bara Harum - Indonesia
- Jindal Steel & Power Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- European Bulk Services B.V. - Netherlands
- Indian Energy Exchange, India
- Port Waratah Coal Services - Australia
- Edison Trading Spa - Italy
- Marubeni Corporation - India
- Central Electricity Authority - India
- Iligan Light & Power Inc, Philippines
- Therma Luzon, Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- ASAPP Information Group - India
- Standard Chartered Bank - UAE
- Barasentosa Lestari - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- The Treasury - Australian Government
- Kaltim Prima Coal - Indonesia
- Central Java Power - Indonesia
- Ministry of Finance - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Kepco SPC Power Corporation, Philippines
- Semirara Mining Corp, Philippines
- Metalloyd Limited - United Kingdom
- Altura Mining Limited, Indonesia
- Indika Energy - Indonesia
- Mercator Lines Limited - India
- PTC India Limited - India
- Eastern Energy - Thailand
- White Energy Company Limited
- Billiton Holdings Pty Ltd - Australia
- Coalindo Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- PNOC Exploration Corporation - Philippines
- Videocon Industries ltd - India
- International Coal Ventures Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Pipit Mutiara Jaya. PT, Indonesia
- Kartika Selabumi Mining - Indonesia
|
| |
| |
|
