We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Friday, 04 September 20
IN A DEEPENING DEBT HOLE OF $34 BILLION, INDONESIA’S PLN MUST STOP DIGGING - IEEFA
 The utility has added IDR100 trillion in debt annually for the last five years
Utilities globally started changing the way they do business years ago, but Indonesia’s PLN power company stands out as a laggard, focused on a confused menu of piecemeal generation options rather than holistic planning that provides system-level solutions, finds a new report from IEEFA, the Institute for Energy Economics and Financial Analysis.
PLN, alongside utilities worldwide, has suffered a severe drop in revenue as power consumption fell by as much as 20% in some cases amid the COVID-19 pandemic, writes Elrika Hamdi, author of the report Never Waste a Crisis – Indonesia’s PLN Needs A Coherent Strategy to Ride Out the COVID-19 Pandemic.
“But the roots of PLN’s problems are deeper than just the pandemic: PLN’s quiet crisis reflects dysfunctional planning and governance that have put the company into strategic paralysis, unable to change direction or adapt to new market realities,” says Hamdi.
“Despite all the warning signs, senior managers still run the power sector with an old-fashioned business-as-usual mindset. Unfortunately, a 2010 playbook will not save PLN from falling deeper into a modern-day debt trap. Neither will indulging an extractive economy mindset that fosters dependence on fossil fuel, just because it’s there”.
“There has to be a willingness to ask the hard questions when PLN’s ocean of red ink proclaims that PLN’s resource-driven development plans are obsolete in a high-technology world.”
The report notes that much of PLN’s current predicament stems from a plan to add a massive 35 gigawatts of generation capacity to Indonesia’s power supply that was poorly designed and implemented.
“The 35 GW program is a political promise that was meant to embody President Joko Widodo’s (Jokowi’s) ambition to fully electrify Indonesia. There is nothing wrong with the ambition, but the subsequent planning and execution has lacked accountability,” says Hamdi.
“Adding generation capacity has become a goal with little attention paid to long-term financial impacts or new system design options. In the absence of much-needed checks and balances, PLN has been driven to the brink and taxpayers will be left to pay the price.”
“PLN’s ability to sustain debt at this level rests firmly on Indonesia’s investment-grade sovereign credit rating and the government’s readiness to support PLN debtors in the event of financial distress,” says Hamdi, noting that PLN bonds are still relatively attractive to investors because of the company’s monopoly and its quasi-sovereign status.
The author also questions the accountability of government support for PLN. Noting both direct and indirect supports, including subsidies, compensation, capital injections, special accounting treatments and government guarantees, Hamdi says there appears to be little consistent oversight of how government support is used to dress up PLN’s accounting.
“The Ministry of Finance, considering PLN’s strategic importance, makes PLN a top priority, but that does not mean PLN’s financial problems can be effectively addressed by endless access to cheap debt that could eventually threaten Indonesia’s financial credibility,” she concludes.
“The best strategy for PLN would be to rebase their planning framework to focus on more cost-effective grid investments that improve the long-run efficiency of the whole power system. Private sector players cannot invest in the grid and have therefore crowded into the generation sector. This has accentuated PLN’s narrow focus on baseload generation has resulted in excess capacity and a brittle system that lacks flexibility. What’s needed now is a more grid-centric strategy that would permit PLN’s investment to enable a more efficient system. It is crucial for PLN to make sure that the power sector reform is not just cosmetic.”
About IEEFA
The Institute for Energy Economics and Financial Analysis (IEEFA) conducts global research and analyses on financial and economic issues related to energy and the environment. The Institute’s mission is to accelerate the transition to a diverse, sustainable, and profitable energy economy.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 09 September 20
MARKET INSIGHT - INTERMODAL
The uneventful summer lull which is coming to an end soon has left its stigma on the newbuilding market, which has already been devastated by the g ...
Saturday, 05 September 20
INDIA WON'T KICK ITS COAL HABIT SO EASILY - HINDU BUSINESS LINE
India has traditionally considered itself lucky to have been endowed with abundant coal reserves, which it has sought to use to meet its energy nee ...
Saturday, 05 September 20
FINANCING COMPLETE FOR 900MW FIFTH PHASE OF MASSIVE DUBAI SOLAR PARK: ARABIAN BUSINESS
Saudi-based ACWA Power on Thursday announced it has completed the signing of all financing agreements for the fifth phase of the Mohammed bin Rashi ...
Saturday, 05 September 20
POLISH COAL DEMAND EXPECTED TO FALL BY 7 MLN TONNES NEXT YEAR: MINISTER - REUTERS
Poland’s demand for coal is expected to fall by around 7 million tonnes next year, or more than 10% of annual hard coal production, after a d ...
Saturday, 05 September 20
PAKISTAN'S NEW 27-YEAR POWER PLAN RISKS LOCKING IN LONG-TERM OVERCAPACITY, LEAVING IMPORTED COAL AND LNG PLANTS STRANDED - IEEFA
Wind and solar, the country’s cheapest source of new generation, also overlooked
Pakistan risks locking itself into building m ...
|
|
|
Showing 791 to 795 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Chamber of Mines of South Africa
- OPG Power Generation Pvt Ltd - India
- Africa Commodities Group - South Africa
- Sakthi Sugars Limited - India
- Bulk Trading Sa - Switzerland
- Electricity Authority, New Zealand
- Mjunction Services Limited - India
- San Jose City I Power Corp, Philippines
- Mintek Dendrill Indonesia
- VISA Power Limited - India
- Electricity Generating Authority of Thailand
- Orica Australia Pty. Ltd.
- GAC Shipping (India) Pvt Ltd
- Meralco Power Generation, Philippines
- Globalindo Alam Lestari - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Leighton Contractors Pty Ltd - Australia
- McConnell Dowell - Australia
- Energy Link Ltd, New Zealand
- Kaltim Prima Coal - Indonesia
- Ministry of Mines - Canada
- Straits Asia Resources Limited - Singapore
- Price Waterhouse Coopers - Russia
- Banpu Public Company Limited - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Indonesian Coal Mining Association
- Baramulti Group, Indonesia
- Posco Energy - South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Star Paper Mills Limited - India
- Wilmar Investment Holdings
- Therma Luzon, Inc, Philippines
- Energy Development Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Binh Thuan Hamico - Vietnam
- Indian Energy Exchange, India
- Thiess Contractors Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- New Zealand Coal & Carbon
- Petrochimia International Co. Ltd.- Taiwan
- Semirara Mining Corp, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Barasentosa Lestari - Indonesia
- Sindya Power Generating Company Private Ltd
- Rashtriya Ispat Nigam Limited - India
- Mercuria Energy - Indonesia
- Salva Resources Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Standard Chartered Bank - UAE
- Madhucon Powers Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Economic Council, Georgia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- LBH Netherlands Bv - Netherlands
- Videocon Industries ltd - India
- Dalmia Cement Bharat India
- Karbindo Abesyapradhi - Indoneisa
- South Luzon Thermal Energy Corporation
- Port Waratah Coal Services - Australia
- Power Finance Corporation Ltd., India
- Kumho Petrochemical, South Korea
- Marubeni Corporation - India
- Kideco Jaya Agung - Indonesia
- Central Java Power - Indonesia
- Krishnapatnam Port Company Ltd. - India
- White Energy Company Limited
- Commonwealth Bank - Australia
- Indo Tambangraya Megah - Indonesia
- ICICI Bank Limited - India
- Maheswari Brothers Coal Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- The State Trading Corporation of India Ltd
- Attock Cement Pakistan Limited
- Semirara Mining and Power Corporation, Philippines
- Goldman Sachs - Singapore
- Anglo American - United Kingdom
- Directorate Of Revenue Intelligence - India
- India Bulls Power Limited - India
- Romanian Commodities Exchange
- International Coal Ventures Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Kobexindo Tractors - Indoneisa
- Siam City Cement PLC, Thailand
- Billiton Holdings Pty Ltd - Australia
- Simpson Spence & Young - Indonesia
- Intertek Mineral Services - Indonesia
- Orica Mining Services - Indonesia
- Bukit Makmur.PT - Indonesia
- Planning Commission, India
- Parliament of New Zealand
- Carbofer General Trading SA - India
- Indogreen Group - Indonesia
- Gujarat Sidhee Cement - India
- ASAPP Information Group - India
- Renaissance Capital - South Africa
- Chettinad Cement Corporation Ltd - India
- MS Steel International - UAE
- Ambuja Cements Ltd - India
- Eastern Coal Council - USA
- Australian Coal Association
- Tata Chemicals Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Kepco SPC Power Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- Ceylon Electricity Board - Sri Lanka
- Georgia Ports Authority, United States
- Manunggal Multi Energi - Indonesia
- Global Coal Blending Company Limited - Australia
- Agrawal Coal Company - India
- Asmin Koalindo Tuhup - Indonesia
- Coalindo Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- IHS Mccloskey Coal Group - USA
- Petron Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Merrill Lynch Commodities Europe
- Deloitte Consulting - India
- Borneo Indobara - Indonesia
- GMR Energy Limited - India
- Lanco Infratech Ltd - India
- Rio Tinto Coal - Australia
- Alfred C Toepfer International GmbH - Germany
- Vizag Seaport Private Limited - India
- Malabar Cements Ltd - India
- Minerals Council of Australia
- Bukit Baiduri Energy - Indonesia
- Sojitz Corporation - Japan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sical Logistics Limited - India
- Indian Oil Corporation Limited
- Sarangani Energy Corporation, Philippines
- Wood Mackenzie - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Edison Trading Spa - Italy
- Bangladesh Power Developement Board
- Essar Steel Hazira Ltd - India
- The University of Queensland
- Coal and Oil Company - UAE
- Karaikal Port Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Singapore Mercantile Exchange
- Jindal Steel & Power Ltd - India
- Interocean Group of Companies - India
- Central Electricity Authority - India
- IEA Clean Coal Centre - UK
- Cigading International Bulk Terminal - Indonesia
- Metalloyd Limited - United Kingdom
- Vedanta Resources Plc - India
- Oldendorff Carriers - Singapore
- CNBM International Corporation - China
- PNOC Exploration Corporation - Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- GVK Power & Infra Limited - India
- Heidelberg Cement - Germany
- Gujarat Electricity Regulatory Commission - India
- Uttam Galva Steels Limited - India
- Gujarat Mineral Development Corp Ltd - India
- PTC India Limited - India
- PowerSource Philippines DevCo
- Ministry of Finance - Indonesia
- Grasim Industreis Ltd - India
- Antam Resourcindo - Indonesia
- Trasteel International SA, Italy
- London Commodity Brokers - England
- Parry Sugars Refinery, India
- SN Aboitiz Power Inc, Philippines
- TeaM Sual Corporation - Philippines
- Mercator Lines Limited - India
- Global Business Power Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Pendopo Energi Batubara - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- European Bulk Services B.V. - Netherlands
- Aboitiz Power Corporation - Philippines
- Tamil Nadu electricity Board
- Bharathi Cement Corporation - India
- Ministry of Transport, Egypt
- Jaiprakash Power Ventures ltd
- Xindia Steels Limited - India
- Aditya Birla Group - India
- Jorong Barutama Greston.PT - Indonesia
- Timah Investasi Mineral - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- Bhushan Steel Limited - India
- Sinarmas Energy and Mining - Indonesia
- Meenaskhi Energy Private Limited - India
- Bhatia International Limited - India
- Latin American Coal - Colombia
- Siam City Cement - Thailand
- Makarim & Taira - Indonesia
- Medco Energi Mining Internasional
- Indika Energy - Indonesia
- Bhoruka Overseas - Indonesia
- Independent Power Producers Association of India
- The Treasury - Australian Government
- SMG Consultants - Indonesia
- Australian Commodity Traders Exchange
- Maharashtra Electricity Regulatory Commission - India
- Altura Mining Limited, Indonesia
- SMC Global Power, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Thai Mozambique Logistica
- PetroVietnam Power Coal Import and Supply Company
- Kapuas Tunggal Persada - Indonesia
- Ind-Barath Power Infra Limited - India
- Larsen & Toubro Limited - India
- CIMB Investment Bank - Malaysia
- Samtan Co., Ltd - South Korea
- Cement Manufacturers Association - India
- Coastal Gujarat Power Limited - India
- Eastern Energy - Thailand
- Asia Pacific Energy Resources Ventures Inc, Philippines
|
| |
| |
|
