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, 03 July 22
CHINESE VICE PREMIER STRESSES CLEAN, EFFICIENT USE OF COAL - XINHUA
Chinese Vice Premier Han Zheng has stressed efforts to promote the clean and efficient use of coal, and pursue green, low-carbon and high-quality d ...
Sunday, 03 July 22
SOVEREIGN SECTOR OUTLOOK REVISED TO NEUTRAL ON UKRAINE WAR IMPACT - FITCH RATINGS
The deterioration in global sovereign credit conditions this year relative to our expectations at end-2021 has caused Fitch Ratings to change its g ...
Saturday, 02 July 22
GLOBAL SEABORNE COAL EXPORTS IN 2021 INCREASED BY 4.4% Y-O-Y TO 1147 MLN TONNES - BANCHERO COSTA
In the full 12 months of 2021, global seaborne coal exports increased by +4.4% y-o-y to 1147 mln tonnes, from 1099 mln tonnes in 2020, according to ...
Friday, 01 July 22
INDIA'S TOP CEMENT MAKER PAYING FOR RUSSIAN COAL IN CHINESE YUAN - REUTERS
India’s biggest cement producer, UltraTech Cement ULTC.NS, is importing a cargo of Russian coal and paying using Chinese yuan, according to a ...
Thursday, 30 June 22
FINANCIAL GAINS SUPPORT COAL TRANSITION - BALTIC EXCHANGE
Support for the shift away from coal dependency continues to mount, with the International Monetary Fund (IMF) calculating that the move would gene ...
|
|
|
Showing 306 to 310 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Mjunction Services Limited - India
- Cigading International Bulk Terminal - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Star Paper Mills Limited - India
- SN Aboitiz Power Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- TeaM Sual Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Electricity Regulatory Commission - India
- Formosa Plastics Group - Taiwan
- Africa Commodities Group - South Africa
- Holcim Trading Pte Ltd - Singapore
- Petron Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- AsiaOL BioFuels Corp., Philippines
- Baramulti Group, Indonesia
- New Zealand Coal & Carbon
- Directorate Of Revenue Intelligence - India
- PTC India Limited - India
- Merrill Lynch Commodities Europe
- Cement Manufacturers Association - India
- Goldman Sachs - Singapore
- Antam Resourcindo - Indonesia
- GVK Power & Infra Limited - India
- Ministry of Mines - Canada
- Mintek Dendrill Indonesia
- Kobexindo Tractors - Indoneisa
- Gujarat Sidhee Cement - India
- Coastal Gujarat Power Limited - India
- Ind-Barath Power Infra Limited - India
- Aboitiz Power Corporation - Philippines
- Indian Energy Exchange, India
- Kideco Jaya Agung - Indonesia
- Riau Bara Harum - Indonesia
- Sindya Power Generating Company Private Ltd
- Eastern Energy - Thailand
- Chettinad Cement Corporation Ltd - India
- The State Trading Corporation of India Ltd
- Attock Cement Pakistan Limited
- Eastern Coal Council - USA
- Asmin Koalindo Tuhup - Indonesia
- Siam City Cement - Thailand
- Economic Council, Georgia
- Ambuja Cements Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- PNOC Exploration Corporation - Philippines
- Kapuas Tunggal Persada - Indonesia
- Maheswari Brothers Coal Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Edison Trading Spa - Italy
- Kaltim Prima Coal - Indonesia
- Sical Logistics Limited - India
- Carbofer General Trading SA - India
- Leighton Contractors Pty Ltd - Australia
- Salva Resources Pvt Ltd - India
- Wood Mackenzie - Singapore
- Bangladesh Power Developement Board
- Barasentosa Lestari - Indonesia
- Global Green Power PLC Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Central Java Power - Indonesia
- Siam City Cement PLC, Thailand
- SMC Global Power, Philippines
- Larsen & Toubro Limited - India
- Posco Energy - South Korea
- Interocean Group of Companies - India
- Oldendorff Carriers - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- CNBM International Corporation - China
- Chamber of Mines of South Africa
- Pipit Mutiara Jaya. PT, Indonesia
- Electricity Authority, New Zealand
- Petrochimia International Co. Ltd.- Taiwan
- Coal and Oil Company - UAE
- Bayan Resources Tbk. - Indonesia
- Karaikal Port Pvt Ltd - India
- Mercator Lines Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Indonesian Coal Mining Association
- Ministry of Transport, Egypt
- San Jose City I Power Corp, Philippines
- Bhatia International Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- GMR Energy Limited - India
- OPG Power Generation Pvt Ltd - India
- Australian Commodity Traders Exchange
- SMG Consultants - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- London Commodity Brokers - England
- Uttam Galva Steels Limited - India
- Wilmar Investment Holdings
- Altura Mining Limited, Indonesia
- Therma Luzon, Inc, Philippines
- Price Waterhouse Coopers - Russia
- Bharathi Cement Corporation - India
- Global Coal Blending Company Limited - Australia
- Rio Tinto Coal - Australia
- Neyveli Lignite Corporation Ltd, - India
- Indika Energy - Indonesia
- Latin American Coal - Colombia
- Australian Coal Association
- Bulk Trading Sa - Switzerland
- Renaissance Capital - South Africa
- McConnell Dowell - Australia
- Meenaskhi Energy Private Limited - India
- Straits Asia Resources Limited - Singapore
- Deloitte Consulting - India
- Tamil Nadu electricity Board
- Orica Mining Services - Indonesia
- International Coal Ventures Pvt Ltd - India
- Aditya Birla Group - India
- Planning Commission, India
- Billiton Holdings Pty Ltd - Australia
- Essar Steel Hazira Ltd - India
- Samtan Co., Ltd - South Korea
- Heidelberg Cement - Germany
- Parliament of New Zealand
- Metalloyd Limited - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- Madhucon Powers Ltd - India
- White Energy Company Limited
- Bhoruka Overseas - Indonesia
- Energy Development Corp, Philippines
- Toyota Tsusho Corporation, Japan
- Vizag Seaport Private Limited - India
- Standard Chartered Bank - UAE
- European Bulk Services B.V. - Netherlands
- Global Business Power Corporation, Philippines
- Bhushan Steel Limited - India
- Minerals Council of Australia
- Port Waratah Coal Services - Australia
- Indian Oil Corporation Limited
- Singapore Mercantile Exchange
- IHS Mccloskey Coal Group - USA
- Dalmia Cement Bharat India
- LBH Netherlands Bv - Netherlands
- Bukit Makmur.PT - Indonesia
- Simpson Spence & Young - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Malabar Cements Ltd - India
- CIMB Investment Bank - Malaysia
- Videocon Industries ltd - India
- Kumho Petrochemical, South Korea
- Independent Power Producers Association of India
- Kalimantan Lumbung Energi - Indonesia
- Coalindo Energy - Indonesia
- Thiess Contractors Indonesia
- Jindal Steel & Power Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Semirara Mining Corp, Philippines
- Commonwealth Bank - Australia
- Ceylon Electricity Board - Sri Lanka
- Energy Link Ltd, New Zealand
- Iligan Light & Power Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- Meralco Power Generation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Timah Investasi Mineral - Indoneisa
- Rashtriya Ispat Nigam Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- ICICI Bank Limited - India
- IEA Clean Coal Centre - UK
- Vedanta Resources Plc - India
- Indogreen Group - Indonesia
- Sree Jayajothi Cements Limited - India
- Power Finance Corporation Ltd., India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Pendopo Energi Batubara - Indonesia
- Borneo Indobara - Indonesia
- Electricity Generating Authority of Thailand
- The Treasury - Australian Government
- Grasim Industreis Ltd - India
- India Bulls Power Limited - India
- Mercuria Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- MS Steel International - UAE
- Globalindo Alam Lestari - Indonesia
- Ministry of Finance - Indonesia
- Jaiprakash Power Ventures ltd
- Romanian Commodities Exchange
- Manunggal Multi Energi - Indonesia
- Makarim & Taira - Indonesia
- Sakthi Sugars Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Vijayanagar Sugar Pvt Ltd - India
- Central Electricity Authority - India
- Sinarmas Energy and Mining - Indonesia
- Georgia Ports Authority, United States
- Binh Thuan Hamico - Vietnam
- Agrawal Coal Company - India
- VISA Power Limited - India
- Xindia Steels Limited - India
- Kepco SPC Power Corporation, Philippines
- ASAPP Information Group - India
- Thai Mozambique Logistica
- Jorong Barutama Greston.PT - Indonesia
- Lanco Infratech Ltd - India
- Orica Australia Pty. Ltd.
- Parry Sugars Refinery, India
- Sojitz Corporation - Japan
- Savvy Resources Ltd - HongKong
- PowerSource Philippines DevCo
- Tata Chemicals Ltd - India
- Medco Energi Mining Internasional
- Marubeni Corporation - India
- The University of Queensland
- South Luzon Thermal Energy Corporation
- Sarangani Energy Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Trasteel International SA, Italy
- Bukit Baiduri Energy - Indonesia
- Intertek Mineral Services - Indonesia
- GAC Shipping (India) Pvt Ltd
- Anglo American - United Kingdom
|
| |
| |
|
