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.
|
|
Sunday, 26 May 19
SUPRAMAX: A LIMITED ACTIVITY WAS REPORTED, WITH THE UPCOMING INDONESIAN HOLIDAYS SLOWING COAL MOVEMENTS - BALTIC BRIEFING
Capesize
The past week marked one of the busier periods for Capesizes this year. With a subdued start due to a public holiday in Singapore on M ...
Wednesday, 22 May 19
SHIPPING MARKET INSIGHT - INTERMODAL
The ship repair sector is showing a constant and gradual increase on the workload throughout the past months, with almost all the shipyards worldwi ...
Saturday, 18 May 19
SUPRAMAX: 56,000DWT OPEN PANJANG FIXING AT $10,500 FOR A TRIP VIA INDONESIA, AND REDELIVERY CHINA - BALTIC EXCHANGE
Capesize
The market continues to ebb and flow with a generally positive up trend. The Capesize 5TC opened with upward momentum from last week&r ...
Friday, 17 May 19
CHINA'S BENCHMARK POWER COAL PRICE REMAINS FLAT - XINHUA
China’s benchmark power coal price remained flat during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...
Thursday, 16 May 19
SUPRAMAX: INDO/CHINA COAL RV TRADING AROUND US$ 9,000 BSS S.CHINA DELIVERY - FEARNLEYS
Capesize
This volatile segment is trying to find a clear direction from the present US$ 12,000/day earnings for standard units says Fearnleys W ...
|
|
|
Showing 1396 to 1400 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Agrawal Coal Company - India
- Independent Power Producers Association of India
- TNB Fuel Sdn Bhd - Malaysia
- McConnell Dowell - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Samtan Co., Ltd - South Korea
- Australian Commodity Traders Exchange
- IEA Clean Coal Centre - UK
- Semirara Mining Corp, Philippines
- Bulk Trading Sa - Switzerland
- Parry Sugars Refinery, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Mintek Dendrill Indonesia
- Wilmar Investment Holdings
- GVK Power & Infra Limited - India
- Edison Trading Spa - Italy
- Trasteel International SA, Italy
- Orica Mining Services - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Australian Coal Association
- Antam Resourcindo - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Kideco Jaya Agung - Indonesia
- Therma Luzon, Inc, Philippines
- Price Waterhouse Coopers - Russia
- Riau Bara Harum - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Electricity Generating Authority of Thailand
- The Treasury - Australian Government
- Dalmia Cement Bharat India
- MS Steel International - UAE
- Makarim & Taira - Indonesia
- Star Paper Mills Limited - India
- Aboitiz Power Corporation - Philippines
- Mjunction Services Limited - India
- Madhucon Powers Ltd - India
- Tata Chemicals Ltd - India
- Attock Cement Pakistan Limited
- Gujarat Electricity Regulatory Commission - India
- Global Green Power PLC Corporation, Philippines
- Bharathi Cement Corporation - India
- Larsen & Toubro Limited - India
- PowerSource Philippines DevCo
- Global Coal Blending Company Limited - Australia
- Sree Jayajothi Cements Limited - India
- Renaissance Capital - South Africa
- Minerals Council of Australia
- Kohat Cement Company Ltd. - Pakistan
- Petrochimia International Co. Ltd.- Taiwan
- SMG Consultants - Indonesia
- Parliament of New Zealand
- Ambuja Cements Ltd - India
- Bhushan Steel Limited - India
- Kepco SPC Power Corporation, Philippines
- Barasentosa Lestari - Indonesia
- CIMB Investment Bank - Malaysia
- Baramulti Group, Indonesia
- Medco Energi Mining Internasional
- IHS Mccloskey Coal Group - USA
- Banpu Public Company Limited - Thailand
- New Zealand Coal & Carbon
- ICICI Bank Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Bukit Makmur.PT - Indonesia
- Africa Commodities Group - South Africa
- Carbofer General Trading SA - India
- Mercator Lines Limited - India
- The University of Queensland
- SMC Global Power, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Sojitz Corporation - Japan
- Sinarmas Energy and Mining - Indonesia
- Orica Australia Pty. Ltd.
- Straits Asia Resources Limited - Singapore
- OPG Power Generation Pvt Ltd - India
- Chamber of Mines of South Africa
- Maheswari Brothers Coal Limited - India
- Karaikal Port Pvt Ltd - India
- Indonesian Coal Mining Association
- Lanco Infratech Ltd - India
- Georgia Ports Authority, United States
- Deloitte Consulting - India
- Pendopo Energi Batubara - Indonesia
- Indo Tambangraya Megah - Indonesia
- Toyota Tsusho Corporation, Japan
- White Energy Company Limited
- Gujarat Mineral Development Corp Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Intertek Mineral Services - Indonesia
- Vizag Seaport Private Limited - India
- Merrill Lynch Commodities Europe
- Holcim Trading Pte Ltd - Singapore
- Bhatia International Limited - India
- Meralco Power Generation, Philippines
- Ministry of Finance - Indonesia
- Posco Energy - South Korea
- Kobexindo Tractors - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Vedanta Resources Plc - India
- Central Java Power - Indonesia
- Savvy Resources Ltd - HongKong
- The State Trading Corporation of India Ltd
- Bayan Resources Tbk. - Indonesia
- India Bulls Power Limited - India
- Kumho Petrochemical, South Korea
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Economic Council, Georgia
- Eastern Coal Council - USA
- Gujarat Sidhee Cement - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bhoruka Overseas - Indonesia
- European Bulk Services B.V. - Netherlands
- Cement Manufacturers Association - India
- Port Waratah Coal Services - Australia
- Cigading International Bulk Terminal - Indonesia
- Indian Energy Exchange, India
- Energy Development Corp, Philippines
- Global Business Power Corporation, Philippines
- Latin American Coal - Colombia
- Sindya Power Generating Company Private Ltd
- Jorong Barutama Greston.PT - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Sakthi Sugars Limited - India
- Billiton Holdings Pty Ltd - Australia
- Bangladesh Power Developement Board
- Heidelberg Cement - Germany
- Ministry of Mines - Canada
- Anglo American - United Kingdom
- Sical Logistics Limited - India
- Electricity Authority, New Zealand
- Simpson Spence & Young - Indonesia
- Coal and Oil Company - UAE
- Kalimantan Lumbung Energi - Indonesia
- International Coal Ventures Pvt Ltd - India
- Interocean Group of Companies - India
- Asmin Koalindo Tuhup - Indonesia
- Sarangani Energy Corporation, Philippines
- Thai Mozambique Logistica
- Krishnapatnam Port Company Ltd. - India
- Indika Energy - Indonesia
- London Commodity Brokers - England
- Semirara Mining and Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- Kartika Selabumi Mining - Indonesia
- Power Finance Corporation Ltd., India
- Mercuria Energy - Indonesia
- Manunggal Multi Energi - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Petron Corporation, Philippines
- Jaiprakash Power Ventures ltd
- Timah Investasi Mineral - Indoneisa
- Singapore Mercantile Exchange
- Metalloyd Limited - United Kingdom
- Salva Resources Pvt Ltd - India
- Borneo Indobara - Indonesia
- SN Aboitiz Power Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- Malabar Cements Ltd - India
- CNBM International Corporation - China
- Marubeni Corporation - India
- Kaltim Prima Coal - Indonesia
- Siam City Cement PLC, Thailand
- Neyveli Lignite Corporation Ltd, - India
- Jindal Steel & Power Ltd - India
- Ceylon Electricity Board - Sri Lanka
- VISA Power Limited - India
- Iligan Light & Power Inc, Philippines
- Siam City Cement - Thailand
- Oldendorff Carriers - Singapore
- Aditya Birla Group - India
- Uttam Galva Steels Limited - India
- Planning Commission, India
- Ministry of Transport, Egypt
- PNOC Exploration Corporation - Philippines
- Grasim Industreis Ltd - India
- Standard Chartered Bank - UAE
- GMR Energy Limited - India
- Thiess Contractors Indonesia
- TeaM Sual Corporation - Philippines
- Romanian Commodities Exchange
- Videocon Industries ltd - India
- Binh Thuan Hamico - Vietnam
- Ind-Barath Power Infra Limited - India
- Alfred C Toepfer International GmbH - Germany
- Indian Oil Corporation Limited
- Formosa Plastics Group - Taiwan
- Essar Steel Hazira Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Goldman Sachs - Singapore
- San Jose City I Power Corp, Philippines
- Commonwealth Bank - Australia
- Meenaskhi Energy Private Limited - India
- South Luzon Thermal Energy Corporation
- Eastern Energy - Thailand
- Altura Mining Limited, Indonesia
- Kapuas Tunggal Persada - Indonesia
- Rio Tinto Coal - Australia
- AsiaOL BioFuels Corp., Philippines
- Directorate Of Revenue Intelligence - India
- Central Electricity Authority - India
- Rashtriya Ispat Nigam Limited - India
- Karbindo Abesyapradhi - Indoneisa
- ASAPP Information Group - India
- LBH Netherlands Bv - Netherlands
- GN Power Mariveles Coal Plant, Philippines
- Tamil Nadu electricity Board
- Indogreen Group - Indonesia
- Coalindo Energy - Indonesia
- Xindia Steels Limited - India
- Wood Mackenzie - Singapore
- Coastal Gujarat Power Limited - India
- Bukit Baiduri Energy - Indonesia
- PTC India Limited - India
- GAC Shipping (India) Pvt Ltd
- Miang Besar Coal Terminal - Indonesia
|
| |
| |
|
