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.
|
|
Thursday, 14 July 22
INDIA'S COAL IMPORTS HIT RECORD HIGH IN JUNE - REUTERS
India's coal imports hit a record high in June despite high global prices, data from three trade sources and Refinitiv ship tracking showed, as ...
Thursday, 14 July 22
CHINA'S JUNE COAL IMPORTS SLUMP AS TRADERS SHUN EXPENSIVE OVERSEAS CARGOES - REUTERS
China’s coal imports fell 33% in June from a year ago, with traders turning down expensive overseas cargoes in favor of domestic ones with ca ...
Wednesday, 13 July 22
KOWEPO TO IMPORT 2.79 MILLION TONS OF LOW TO MEDIUM COAL
COALspot.com: Korea Western Power Co., Ltd. (KOWEPO) has issued an International tender for Total 1360k MT of Min.4400 kcal/kg NCV coal and Total 1 ...
Wednesday, 13 July 22
HAVE MINERS MISSED THE BOAT TO INVEST AND GET AHEAD OF THE ENERGY TRANSITION? - WOOD MACKENZIE
Miners are in rude health, benefiting from economic stimuli, the post-pandemic recovery and associated supply constraints. Initially the Ukraine wa ...
Wednesday, 13 July 22
MARKET INSIGHT - INTERMODAL
Taking the previous market insight a step further, market sentiment remains bullish regarding the overall ROI of scrubbers, facing tailwinds from a ...
|
|
|
Showing 291 to 295 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Eastern Coal Council - USA
- IHS Mccloskey Coal Group - USA
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Asmin Koalindo Tuhup - Indonesia
- Madhucon Powers Ltd - India
- Jaiprakash Power Ventures ltd
- ASAPP Information Group - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Xindia Steels Limited - India
- Riau Bara Harum - Indonesia
- Indogreen Group - Indonesia
- PowerSource Philippines DevCo
- Medco Energi Mining Internasional
- Price Waterhouse Coopers - Russia
- Marubeni Corporation - India
- Samtan Co., Ltd - South Korea
- Commonwealth Bank - Australia
- Toyota Tsusho Corporation, Japan
- IEA Clean Coal Centre - UK
- Bhatia International Limited - India
- Orica Mining Services - Indonesia
- Cement Manufacturers Association - India
- Kobexindo Tractors - Indoneisa
- Eastern Energy - Thailand
- South Luzon Thermal Energy Corporation
- Wilmar Investment Holdings
- GMR Energy Limited - India
- SMC Global Power, Philippines
- Karaikal Port Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Attock Cement Pakistan Limited
- Bukit Makmur.PT - Indonesia
- Renaissance Capital - South Africa
- Central Java Power - Indonesia
- The University of Queensland
- The State Trading Corporation of India Ltd
- Billiton Holdings Pty Ltd - Australia
- Tamil Nadu electricity Board
- Indonesian Coal Mining Association
- Maharashtra Electricity Regulatory Commission - India
- Coalindo Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Mintek Dendrill Indonesia
- Global Green Power PLC Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Carbofer General Trading SA - India
- Africa Commodities Group - South Africa
- Petron Corporation, Philippines
- Bhushan Steel Limited - India
- Georgia Ports Authority, United States
- Anglo American - United Kingdom
- Makarim & Taira - Indonesia
- Coal and Oil Company - UAE
- Singapore Mercantile Exchange
- Uttam Galva Steels Limited - India
- Wood Mackenzie - Singapore
- PNOC Exploration Corporation - Philippines
- Thai Mozambique Logistica
- Krishnapatnam Port Company Ltd. - India
- Kapuas Tunggal Persada - Indonesia
- Intertek Mineral Services - Indonesia
- Vedanta Resources Plc - India
- Jindal Steel & Power Ltd - India
- Electricity Generating Authority of Thailand
- Chamber of Mines of South Africa
- Meralco Power Generation, Philippines
- Essar Steel Hazira Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Siam City Cement PLC, Thailand
- Metalloyd Limited - United Kingdom
- Orica Australia Pty. Ltd.
- Siam City Cement - Thailand
- Globalindo Alam Lestari - Indonesia
- Borneo Indobara - Indonesia
- Mercator Lines Limited - India
- Rashtriya Ispat Nigam Limited - India
- Ministry of Transport, Egypt
- ICICI Bank Limited - India
- Salva Resources Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Manunggal Multi Energi - Indonesia
- Directorate Of Revenue Intelligence - India
- Energy Development Corp, Philippines
- Heidelberg Cement - Germany
- Indian Oil Corporation Limited
- Miang Besar Coal Terminal - Indonesia
- Therma Luzon, Inc, Philippines
- Binh Thuan Hamico - Vietnam
- Sakthi Sugars Limited - India
- Leighton Contractors Pty Ltd - Australia
- CIMB Investment Bank - Malaysia
- Goldman Sachs - Singapore
- MS Steel International - UAE
- Deloitte Consulting - India
- Ministry of Finance - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Kaltim Prima Coal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Indo Tambangraya Megah - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Larsen & Toubro Limited - India
- AsiaOL BioFuels Corp., Philippines
- The Treasury - Australian Government
- India Bulls Power Limited - India
- Economic Council, Georgia
- Oldendorff Carriers - Singapore
- Thiess Contractors Indonesia
- Formosa Plastics Group - Taiwan
- Bhoruka Overseas - Indonesia
- Indian Energy Exchange, India
- San Jose City I Power Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Neyveli Lignite Corporation Ltd, - India
- Posco Energy - South Korea
- Offshore Bulk Terminal Pte Ltd, Singapore
- Jorong Barutama Greston.PT - Indonesia
- Lanco Infratech Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Aditya Birla Group - India
- Mjunction Services Limited - India
- Straits Asia Resources Limited - Singapore
- Grasim Industreis Ltd - India
- Central Electricity Authority - India
- Australian Coal Association
- Malabar Cements Ltd - India
- OPG Power Generation Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Sarangani Energy Corporation, Philippines
- Kumho Petrochemical, South Korea
- Parry Sugars Refinery, India
- Minerals Council of Australia
- CNBM International Corporation - China
- Parliament of New Zealand
- Maheswari Brothers Coal Limited - India
- Bulk Trading Sa - Switzerland
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Pipit Mutiara Jaya. PT, Indonesia
- Power Finance Corporation Ltd., India
- Global Coal Blending Company Limited - Australia
- Ministry of Mines - Canada
- Ambuja Cements Ltd - India
- Kepco SPC Power Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Energy Link Ltd, New Zealand
- Bahari Cakrawala Sebuku - Indonesia
- Bharathi Cement Corporation - India
- New Zealand Coal & Carbon
- Agrawal Coal Company - India
- GVK Power & Infra Limited - India
- Bayan Resources Tbk. - Indonesia
- Edison Trading Spa - Italy
- Ind-Barath Power Infra Limited - India
- Altura Mining Limited, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Bangladesh Power Developement Board
- Pendopo Energi Batubara - Indonesia
- Baramulti Group, Indonesia
- Aboitiz Power Corporation - Philippines
- McConnell Dowell - Australia
- Gujarat Sidhee Cement - India
- SN Aboitiz Power Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Coastal Gujarat Power Limited - India
- Trasteel International SA, Italy
- Merrill Lynch Commodities Europe
- Videocon Industries ltd - India
- Rio Tinto Coal - Australia
- LBH Netherlands Bv - Netherlands
- Mercuria Energy - Indonesia
- Vizag Seaport Private Limited - India
- Port Waratah Coal Services - Australia
- Latin American Coal - Colombia
- Sical Logistics Limited - India
- Interocean Group of Companies - India
- Independent Power Producers Association of India
- White Energy Company Limited
- Meenaskhi Energy Private Limited - India
- TeaM Sual Corporation - Philippines
- VISA Power Limited - India
- International Coal Ventures Pvt Ltd - India
- Australian Commodity Traders Exchange
- Karbindo Abesyapradhi - Indoneisa
- Semirara Mining and Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Tata Chemicals Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sinarmas Energy and Mining - Indonesia
- Semirara Mining Corp, Philippines
- Simpson Spence & Young - Indonesia
- Star Paper Mills Limited - India
- Planning Commission, India
- Indika Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- SMG Consultants - Indonesia
- Dalmia Cement Bharat India
- Electricity Authority, New Zealand
- Romanian Commodities Exchange
- Kideco Jaya Agung - Indonesia
- Sojitz Corporation - Japan
- London Commodity Brokers - England
- Standard Chartered Bank - UAE
- Global Business Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Bukit Baiduri Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- PTC India Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- GAC Shipping (India) Pvt Ltd
- Sindya Power Generating Company Private Ltd
|
| |
| |
|
