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 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Mercator Lines Limited - India
- Petron Corporation, Philippines
- ICICI Bank Limited - India
- Central Java Power - Indonesia
- Attock Cement Pakistan Limited
- Simpson Spence & Young - Indonesia
- Vizag Seaport Private Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- San Jose City I Power Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- MS Steel International - UAE
- Ambuja Cements Ltd - India
- Electricity Authority, New Zealand
- Price Waterhouse Coopers - Russia
- Leighton Contractors Pty Ltd - Australia
- Savvy Resources Ltd - HongKong
- The Treasury - Australian Government
- Georgia Ports Authority, United States
- Tata Chemicals Ltd - India
- Ind-Barath Power Infra Limited - India
- Coal and Oil Company - UAE
- Videocon Industries ltd - India
- Jindal Steel & Power Ltd - India
- Planning Commission, India
- Sree Jayajothi Cements Limited - India
- Edison Trading Spa - Italy
- Indika Energy - Indonesia
- Bhatia International Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Rio Tinto Coal - Australia
- Bharathi Cement Corporation - India
- SMG Consultants - Indonesia
- Independent Power Producers Association of India
- Ministry of Finance - Indonesia
- Bhoruka Overseas - Indonesia
- McConnell Dowell - Australia
- Singapore Mercantile Exchange
- Bayan Resources Tbk. - Indonesia
- European Bulk Services B.V. - Netherlands
- Binh Thuan Hamico - Vietnam
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Parry Sugars Refinery, India
- Gujarat Electricity Regulatory Commission - India
- Maharashtra Electricity Regulatory Commission - India
- Wood Mackenzie - Singapore
- Star Paper Mills Limited - India
- Chettinad Cement Corporation Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Australian Coal Association
- Indo Tambangraya Megah - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- LBH Netherlands Bv - Netherlands
- Straits Asia Resources Limited - Singapore
- VISA Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Tamil Nadu electricity Board
- Formosa Plastics Group - Taiwan
- Bangladesh Power Developement Board
- Directorate General of MIneral and Coal - Indonesia
- Ministry of Mines - Canada
- Kohat Cement Company Ltd. - Pakistan
- Malabar Cements Ltd - India
- Kartika Selabumi Mining - Indonesia
- Banpu Public Company Limited - Thailand
- Global Business Power Corporation, Philippines
- Power Finance Corporation Ltd., India
- Agrawal Coal Company - India
- GVK Power & Infra Limited - India
- International Coal Ventures Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- OPG Power Generation Pvt Ltd - India
- Meralco Power Generation, Philippines
- Indian Oil Corporation Limited
- Renaissance Capital - South Africa
- Thiess Contractors Indonesia
- Antam Resourcindo - Indonesia
- Cement Manufacturers Association - India
- Carbofer General Trading SA - India
- Gujarat Sidhee Cement - India
- Manunggal Multi Energi - Indonesia
- Romanian Commodities Exchange
- Orica Australia Pty. Ltd.
- Gujarat Mineral Development Corp Ltd - India
- Mercuria Energy - Indonesia
- Semirara Mining Corp, Philippines
- Coalindo Energy - Indonesia
- Aditya Birla Group - India
- The State Trading Corporation of India Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Ceylon Electricity Board - Sri Lanka
- Ministry of Transport, Egypt
- Bhushan Steel Limited - India
- Barasentosa Lestari - Indonesia
- ASAPP Information Group - India
- Lanco Infratech Ltd - India
- Siam City Cement - Thailand
- Meenaskhi Energy Private Limited - India
- Energy Development Corp, Philippines
- Electricity Generating Authority of Thailand
- Aboitiz Power Corporation - Philippines
- Eastern Coal Council - USA
- Timah Investasi Mineral - Indoneisa
- Xindia Steels Limited - India
- Kepco SPC Power Corporation, Philippines
- Dalmia Cement Bharat India
- Maheswari Brothers Coal Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Chamber of Mines of South Africa
- Semirara Mining and Power Corporation, Philippines
- Mjunction Services Limited - India
- Globalindo Alam Lestari - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Billiton Holdings Pty Ltd - Australia
- Heidelberg Cement - Germany
- Marubeni Corporation - India
- Sarangani Energy Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Africa Commodities Group - South Africa
- Energy Link Ltd, New Zealand
- Coastal Gujarat Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Sindya Power Generating Company Private Ltd
- AsiaOL BioFuels Corp., Philippines
- Anglo American - United Kingdom
- Commonwealth Bank - Australia
- Kideco Jaya Agung - Indonesia
- IEA Clean Coal Centre - UK
- TeaM Sual Corporation - Philippines
- PTC India Limited - India
- Medco Energi Mining Internasional
- Latin American Coal - Colombia
- Port Waratah Coal Services - Australia
- Bulk Trading Sa - Switzerland
- Central Electricity Authority - India
- Goldman Sachs - Singapore
- PowerSource Philippines DevCo
- Sinarmas Energy and Mining - Indonesia
- Salva Resources Pvt Ltd - India
- Sojitz Corporation - Japan
- Standard Chartered Bank - UAE
- London Commodity Brokers - England
- Australian Commodity Traders Exchange
- Indonesian Coal Mining Association
- Karbindo Abesyapradhi - Indoneisa
- Borneo Indobara - Indonesia
- Metalloyd Limited - United Kingdom
- Kobexindo Tractors - Indoneisa
- Sical Logistics Limited - India
- Rashtriya Ispat Nigam Limited - India
- Global Green Power PLC Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- White Energy Company Limited
- Larsen & Toubro Limited - India
- Orica Mining Services - Indonesia
- Wilmar Investment Holdings
- Vedanta Resources Plc - India
- Interocean Group of Companies - India
- Altura Mining Limited, Indonesia
- Bukit Makmur.PT - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Makarim & Taira - Indonesia
- Oldendorff Carriers - Singapore
- Krishnapatnam Port Company Ltd. - India
- Iligan Light & Power Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- GMR Energy Limited - India
- Toyota Tsusho Corporation, Japan
- Intertek Mineral Services - Indonesia
- CNBM International Corporation - China
- SN Aboitiz Power Inc, Philippines
- Economic Council, Georgia
- New Zealand Coal & Carbon
- Pendopo Energi Batubara - Indonesia
- Madhucon Powers Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Minerals Council of Australia
- Merrill Lynch Commodities Europe
- Riau Bara Harum - Indonesia
- Directorate Of Revenue Intelligence - India
- Deloitte Consulting - India
- Kalimantan Lumbung Energi - Indonesia
- Grasim Industreis Ltd - India
- Kaltim Prima Coal - Indonesia
- Global Coal Blending Company Limited - Australia
- IHS Mccloskey Coal Group - USA
- Posco Energy - South Korea
- Bukit Baiduri Energy - Indonesia
- Uttam Galva Steels Limited - India
- Trasteel International SA, Italy
- Indian Energy Exchange, India
- GAC Shipping (India) Pvt Ltd
- South Luzon Thermal Energy Corporation
- Siam City Cement PLC, Thailand
- India Bulls Power Limited - India
- Parliament of New Zealand
- Eastern Energy - Thailand
- Indogreen Group - Indonesia
- Mintek Dendrill Indonesia
- Therma Luzon, Inc, Philippines
- Cigading International Bulk Terminal - Indonesia
- SMC Global Power, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Kumho Petrochemical, South Korea
- CIMB Investment Bank - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- Karaikal Port Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Essar Steel Hazira Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Baramulti Group, Indonesia
- Sakthi Sugars Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Miang Besar Coal Terminal - Indonesia
- Thai Mozambique Logistica
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The University of Queensland
- Samtan Co., Ltd - South Korea
|
| |
| |
|
