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, 25 November 21
SE ASIA POWER DEMAND TO RISE AS STATE SUPPORT MITIGATES COVID-19 IMPACT - FITCH RATINGS
Electricity demand in south-east Asia is likely to increase in 2021, following slow growth or contraction in 2020, thanks to state support that has ...
Thursday, 25 November 21
FITCH RATINGS INCREASES MOST GLOBAL METALS AND MINING PRICE ASSUMPTIONS - FITCH RATINGS
Fitch Ratings has increased most metals and mining price assumptions, particularly those that benefit from increased longer-term demand due to glob ...
Thursday, 25 November 21
CHINA'S COAL PRICE DROPS IN MID-NOVEMBER AMID GOVERNMENT’S SWEEPING MEASURES - GLOBAL TIMES
China’s coal prices have dropped significantly in mid-November compared with the beginning of the month, with the price of coking coal and co ...
Wednesday, 24 November 21
MARKET INSIGHT - INTERMODAL
Inflation is the word that has dominated the meetings of foreign leaders and finance ministers in recent weeks, as rising energy costs, supply chai ...
Wednesday, 24 November 21
WHY THIS MINING ANALYST IS UPBEAT ON THE IRON ORE PRICE FORECAST - MOTLEY FOOL
In many ways, 2021 can be called the year of the iron ore price. Much of the talk of the ASX town this year has revolved around this key economic m ...
|
|
|
Showing 401 to 405 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Mintek Dendrill Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Anglo American - United Kingdom
- GAC Shipping (India) Pvt Ltd
- Madhucon Powers Ltd - India
- Kideco Jaya Agung - Indonesia
- Jaiprakash Power Ventures ltd
- Gujarat Electricity Regulatory Commission - India
- SMC Global Power, Philippines
- Simpson Spence & Young - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Bukit Baiduri Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Electricity Authority, New Zealand
- Semirara Mining Corp, Philippines
- Merrill Lynch Commodities Europe
- Savvy Resources Ltd - HongKong
- Economic Council, Georgia
- Dalmia Cement Bharat India
- PNOC Exploration Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Kumho Petrochemical, South Korea
- Electricity Generating Authority of Thailand
- Mercator Lines Limited - India
- Vedanta Resources Plc - India
- Vizag Seaport Private Limited - India
- Tamil Nadu electricity Board
- Orica Australia Pty. Ltd.
- Borneo Indobara - Indonesia
- Bhoruka Overseas - Indonesia
- Coalindo Energy - Indonesia
- Singapore Mercantile Exchange
- Aditya Birla Group - India
- Alfred C Toepfer International GmbH - Germany
- PetroVietnam Power Coal Import and Supply Company
- TeaM Sual Corporation - Philippines
- Ministry of Mines - Canada
- Energy Development Corp, Philippines
- Lanco Infratech Ltd - India
- Interocean Group of Companies - India
- Independent Power Producers Association of India
- Siam City Cement PLC, Thailand
- Global Green Power PLC Corporation, Philippines
- Wilmar Investment Holdings
- Petrochimia International Co. Ltd.- Taiwan
- PTC India Limited - India
- Iligan Light & Power Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Maheswari Brothers Coal Limited - India
- Global Business Power Corporation, Philippines
- Parry Sugars Refinery, India
- The Treasury - Australian Government
- Gujarat Mineral Development Corp Ltd - India
- Australian Coal Association
- GMR Energy Limited - India
- Kobexindo Tractors - Indoneisa
- Coal and Oil Company - UAE
- International Coal Ventures Pvt Ltd - India
- Central Java Power - Indonesia
- Karaikal Port Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Thai Mozambique Logistica
- Central Electricity Authority - India
- Indo Tambangraya Megah - Indonesia
- ASAPP Information Group - India
- Bukit Makmur.PT - Indonesia
- Indian Oil Corporation Limited
- Cement Manufacturers Association - India
- Wood Mackenzie - Singapore
- Bayan Resources Tbk. - Indonesia
- Australian Commodity Traders Exchange
- Siam City Cement - Thailand
- Aboitiz Power Corporation - Philippines
- Gujarat Sidhee Cement - India
- Samtan Co., Ltd - South Korea
- Manunggal Multi Energi - Indonesia
- Sakthi Sugars Limited - India
- Straits Asia Resources Limited - Singapore
- Africa Commodities Group - South Africa
- Star Paper Mills Limited - India
- Agrawal Coal Company - India
- CIMB Investment Bank - Malaysia
- GVK Power & Infra Limited - India
- VISA Power Limited - India
- Power Finance Corporation Ltd., India
- Rio Tinto Coal - Australia
- Indika Energy - Indonesia
- Directorate Of Revenue Intelligence - India
- Krishnapatnam Port Company Ltd. - India
- Bharathi Cement Corporation - India
- Sindya Power Generating Company Private Ltd
- Minerals Council of Australia
- Ministry of Transport, Egypt
- Meenaskhi Energy Private Limited - India
- Rashtriya Ispat Nigam Limited - India
- Meralco Power Generation, Philippines
- The University of Queensland
- Malabar Cements Ltd - India
- Thiess Contractors Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Marubeni Corporation - India
- Karbindo Abesyapradhi - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Globalindo Alam Lestari - Indonesia
- Bangladesh Power Developement Board
- Kepco SPC Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Deloitte Consulting - India
- Bukit Asam (Persero) Tbk - Indonesia
- Semirara Mining and Power Corporation, Philippines
- New Zealand Coal & Carbon
- Carbofer General Trading SA - India
- CNBM International Corporation - China
- South Luzon Thermal Energy Corporation
- Indian Energy Exchange, India
- The State Trading Corporation of India Ltd
- Intertek Mineral Services - Indonesia
- Mjunction Services Limited - India
- Ceylon Electricity Board - Sri Lanka
- ICICI Bank Limited - India
- Sojitz Corporation - Japan
- Salva Resources Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- SN Aboitiz Power Inc, Philippines
- Grasim Industreis Ltd - India
- Jindal Steel & Power Ltd - India
- Planning Commission, India
- IHS Mccloskey Coal Group - USA
- Coastal Gujarat Power Limited - India
- Heidelberg Cement - Germany
- Timah Investasi Mineral - Indoneisa
- Xindia Steels Limited - India
- Posco Energy - South Korea
- MS Steel International - UAE
- Attock Cement Pakistan Limited
- Baramulti Group, Indonesia
- Latin American Coal - Colombia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bhatia International Limited - India
- Trasteel International SA, Italy
- Riau Bara Harum - Indonesia
- Renaissance Capital - South Africa
- Bhushan Steel Limited - India
- Holcim Trading Pte Ltd - Singapore
- European Bulk Services B.V. - Netherlands
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Finance - Indonesia
- McConnell Dowell - Australia
- Kalimantan Lumbung Energi - Indonesia
- SMG Consultants - Indonesia
- Eastern Energy - Thailand
- London Commodity Brokers - England
- Formosa Plastics Group - Taiwan
- Barasentosa Lestari - Indonesia
- Kartika Selabumi Mining - Indonesia
- PowerSource Philippines DevCo
- Chamber of Mines of South Africa
- AsiaOL BioFuels Corp., Philippines
- Indonesian Coal Mining Association
- Bahari Cakrawala Sebuku - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Orica Mining Services - Indonesia
- India Bulls Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Antam Resourcindo - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Banpu Public Company Limited - Thailand
- Maharashtra Electricity Regulatory Commission - India
- Billiton Holdings Pty Ltd - Australia
- Ambuja Cements Ltd - India
- Sical Logistics Limited - India
- Tata Chemicals Ltd - India
- Makarim & Taira - Indonesia
- Port Waratah Coal Services - Australia
- Toyota Tsusho Corporation, Japan
- Pendopo Energi Batubara - Indonesia
- Kaltim Prima Coal - Indonesia
- Standard Chartered Bank - UAE
- TNB Fuel Sdn Bhd - Malaysia
- Metalloyd Limited - United Kingdom
- Georgia Ports Authority, United States
- White Energy Company Limited
- Petron Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Chettinad Cement Corporation Ltd - India
- Mercuria Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Larsen & Toubro Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Uttam Galva Steels Limited - India
- IEA Clean Coal Centre - UK
- Energy Link Ltd, New Zealand
- LBH Netherlands Bv - Netherlands
- Global Coal Blending Company Limited - Australia
- Binh Thuan Hamico - Vietnam
- Medco Energi Mining Internasional
- Sarangani Energy Corporation, Philippines
- Price Waterhouse Coopers - Russia
- Eastern Coal Council - USA
- Ind-Barath Power Infra Limited - India
- Parliament of New Zealand
- Kapuas Tunggal Persada - Indonesia
- Videocon Industries ltd - India
- Edison Trading Spa - Italy
- Indogreen Group - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Goldman Sachs - Singapore
- Romanian Commodities Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Altura Mining Limited, Indonesia
- Commonwealth Bank - Australia
|
| |
| |
|
