COALspot.com keeps you connected across the coal world
  • JUNE 2022 HBA FOR EXPORTS INCREASED BY 17.51% MOM, 104.36% YTM AND 222.84% YOY
  • JUNE 2022 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS FIXED AT US$ 323.91 A TON

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events


WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Sunday, 27 June 21
INDONESIA'S STATE-OWNED UTILITY PLN'S 2060 NET ZERO AMBITION NOT WITHOUT FLAWS AND GAPS - IEEFA
IEEFAIndonesia on the right emissions reduction pathway but same old coal stories persist

Recent announcements by Indonesia’s state-owned utility company Perusahaan Listrik Negara (PLN) to achieve carbon neutrality by 2060 must be met with caution and scrutinized as the numbers don’t stack up, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA).
 
The report’s authors IEEFA energy finance analysts Elrika Hamdi and Putra Adhiguna say that PLN and the Ministry of Energy and Mineral Resources (MEMR) should be commended for their commitments to long-term climate change mitigation targets. However, these statements don’t appear to line up with their current and medium-term energy sector policy initiatives, although some positive developments do appear.
 
In May this year, PLN announced that it hopes to achieve carbon neutrality by 2060, in addition to Indonesia’s target of 23% renewables by 2025. This will begin with a series of conventional steam plants’ retirement starting from 2030 with the last one by 2056.
 
“The net-zero plan is not based on new initiatives that represent a reset of Indonesia’s carbon emissions pathway,” says co-author of the report, Elrika Hamdi.
 
Through IEEFA’s analysis, some key findings include:
 
1. The disclosed net-zero plan has no early coal plant retirement in sight. Instead, the plan simply highlights existing plans for an orderly decommissioning of PLN-connected coal facilities, following the economic age of each plant.
 
2. Approximately 16 GW of new coal capacity from the 35 GW program will still come online between 2021 and 2030. MEMR has conveyed President Jokowi’s instruction that no more coal plants should be considered except for those that are under construction or have reached financial close. With this exception, it is expected that 100% of Independent Power Producers’ (IPPs) coal pipelines in the 35 GW program will continue, despite the looming overcapacity in the Java-Bali and Sumatera grid.
 
3. The first phase of PLN’s 1 GW steam power plants (PLTU) retirement planned for 2030 are very old plants, that will have been in service for 50-60 years, and have been operating on oil or gas.
 
4. 10 out of the 12 ‘troubled’ small coal plants that were targeted for cancellation were actually cancelled two years ago in the 2019 Power Sector Business Plan (RUPTL).
 
5. Around 6.8 GW of NEW coal power “modifications” or “postponed” are found in the Draft RUPTL 2021. Although it raises questions as to why PLN and MEMR’s announcements have not drawn more attention to these and chose to emphasize the 34 troubled power plants with 177 MW of cancellations.
 
6. The proportion of renewables is now higher and the electricity demand growth projection for the next 10 years is toned down.
 
7. Biomass co-firing, large-scale hydro, and geothermal are the chosen shortcut to reach the Paris Agreement target in 2025, meanwhile solar and wind are still put on the back burner.
 
8. MEMR and PLN’s net-zero emission scenarios are based on different assumptions. While both plans clearly showed alignment on coal capacity reduction, the pathways for meeting the targets diverged widely. One of MEMR’s scenarios requires Indonesia to build an estimated 1.4 billion ton/year biomass industry by 2060, roughly two hundred times the US capacity as the world’s largest biomass exporter.
 
9. PLN’s increased operating profit in FY2020 was mainly a result of a huge drop in fuel expenses, mostly from oil and gas. This might be due to a sharp drop in oil prices due to Covid-19, new government support to cap gas prices for PLN, and a drop in fuel volume purchased due to declining demand in 2020.
 
10. PLN financial metrics would have looked different if they implemented the new SFAS 73 accounting standard for Power Purchase Agreements (PPA) and Energy Sales Contracts (ESC), yet they were exempted from such a requirement through an OJK Regulation No 6/2017.
 
“PLN would have booked a significantly lower net profit in FY2020 from IDR 5.9 trillion to IDR 990 billion. With this exemption, it is also worth noting that there is an estimated IDR 242.9 trillion of PLN’s liabilities that are currently not recorded on its book (off-balance sheet),” says Hamdi.
 
Co-author Putra Adhiguna notes that the gaps between the net-zero announcements and MEMR and PLN’s traditional planning process outputs raise the likelihood that the net-zero plan is still a work in progress.
 
“As a result, further changes and adjustments should be expected as key stakeholders examine the practical implications of these plans and refinements emerge,” says Adhiguna.
 
IEEFA recommends that the following areas should be on the shortlist for review:
 
1. Coherent and realistic targets. The first step is to ensure alignment between PLN and MEMR plans, with full consideration of which technologies are best positioned to deliver positive emissions outcomes.
 
2. Coal demand and pricing trends in the run-up to 2030.
 
“With the prominence of coal in the power system, rising consumption domestically is expected. Stakeholders should keep watch on the export quota which has been rising in recent years and any related pricing pressures,” says Adhiguna.
 
3. Has the renewable energy potential been explored to the fullest?
 
4. Attention should be focused on the un-needed coal plants which remain in the plan but could potentially be scrapped – especially those that have NOT REACHED financial closure. Stakeholders should ensure there is clarity on the definition of ‘deadlines’ – whether the deadline is for initiating construction, reaching financial closure, or putting the unit into operation- bearing in mind that ‘under construction’ can have a very liquid meaning. More importantly is to critically examine the drawbacks for adding more plants in already-congested grids, especially on the back of the government’s increasing subsidy and compensation payment which basically uses taxpayers’ money.
 
“PLN is well aware of the challenges in exiting contractual agreements for plants which are already in the later stages of development. But for those that have not reached financial closure after years of contract signing, it raises questions about the business viability of such a project,” says Hamdi.
 
“With PLN already struggling to manage excess capacity, this is a window of opportunity for PLN, with the government support, to fully reconsider plants which have not secured financial backing.”


If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Thursday, 31 March 22
CHINA'S COAL OUTPUT SET FOR MODERATE GROWTH IN 2022 - INDUSTRY BODY - REUTERS
China is expected to see its coal output to grow further in 2022 after hitting a record last year, an industry body forecast on Wednesday, as the c ...


Tuesday, 29 March 22
MEMR OF INDONESIA HAS FIXED COAL PRICE AT US$ 90 PER TONNE FOR DOMESTIC INDUSTRIES EXCEPT SMELTER INDUSTRIES; FOR PLN USD 70 IS APPLICABLE
Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif has set the selling price of coal for domestic, industrial except metal processing an ...


Monday, 21 March 22
A FORCE MAJEURE TO BE RECKONED WITH - BALTIC EXCHANGE
Sanctions cause payment confusion This dispute in MUR Shipping BV v. RTI Ltd [2022] EWHC 467 (Comm) related to an owner’s purported exercis ...


Monday, 21 March 22
CHINA'S COAL OUTPUT UP 10.3 PCT IN FIRST TWO MONTHS - XINHUA
China’s raw coal output posted fast growth in the first two months of 2022, while coal imports continued to shrink, official data showed. ...


Tuesday, 15 March 22
INDUSTRY VETERANS & ORGANIZATIONS HONOURED WITH THE PRESTIGIOUS SHIPTEK INTERNATIONAL AWARDS 2022
Press Release: The 15th edition of the prestigious ShipTek International Conference & Awards 2022 concluded successfully from March 7th - 8th 2 ...


   2 3 4 5 6   
Showing 16 to 20 news of total 6550
News by Category
Popular News
 
Total Members : 27,851
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

  • Sakthi Sugars Limited - India
  • Borneo Indobara - Indonesia
  • Indo Tambangraya Megah - Indonesia
  • Eastern Energy - Thailand
  • Maheswari Brothers Coal Limited - India
  • Therma Luzon, Inc, Philippines
  • The State Trading Corporation of India Ltd
  • PLN Batubara - Indonesia
  • Vedanta Resources Plc - India
  • Humpuss - Indonesia
  • Panama Canal Authority
  • Eastern Coal Council - USA
  • GMR Energy Limited - India
  • NALCO India
  • Mintek Dendrill Indonesia
  • Essar Steel Hazira Ltd - India
  • Petron Corporation, Philippines
  • Rashtriya Ispat Nigam Limited - India
  • Vizag Seaport Private Limited - India
  • Petrochimia International Co. Ltd.- Taiwan
  • Chettinad Cement Corporation Ltd - India
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Idemitsu - Japan
  • The University of Queensland
  • Vijayanagar Sugar Pvt Ltd - India
  • Bangkok Bank PCL
  • Makarim & Taira - Indonesia
  • Semirara Mining Corp, Philippines
  • Noble Europe Ltd - UK
  • Marubeni Corporation - India
  • Straits Asia Resources Limited - Singapore
  • Ind-Barath Power Infra Limited - India
  • Xindia Steels Limited - India
  • Wood Mackenzie - Singapore
  • Port Waratah Coal Services - Australia
  • Cebu Energy, Philippines
  • UOB Asia (HK) Ltd
  • The India Cements Ltd
  • Jaiprakash Power Ventures ltd
  • Maruti Cements - India
  • India Bulls Power Limited - India
  • Oldendorff Carriers - Singapore
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • LBH Netherlands Bv - Netherlands
  • Electricity Generating Authority of Thailand
  • Sojitz Corporation - Japan
  • TeaM Sual Corporation - Philippines
  • Africa Commodities Group - South Africa
  • Coaltrans Conferences
  • Aditya Birla Group - India
  • World Coal - UK
  • bp singapore
  • Billiton Holdings Pty Ltd - Australia
  • Inco-Indonesia
  • PTC India Limited - India
  • SGS (Thailand) Limited
  • Kartika Selabumi Mining - Indonesia
  • Barclays Capital - USA
  • Kalimantan Lumbung Energi - Indonesia
  • Posco Energy - South Korea
  • Asian Development Bank
  • GHCL Limited - India
  • Shenhua Group - China
  • Bukit Baiduri Energy - Indonesia
  • Altura Mining Limited, Indonesia
  • Bhushan Steel Limited - India
  • Central Electricity Authority - India
  • Adaro Indonesia
  • Asia Pacific Energy Resources Ventures Inc, Philippines
  • Indogreen Group - Indonesia
  • Kobexindo Tractors - Indoneisa
  • Gujarat Mineral Development Corp Ltd - India
  • Chamber of Mines of South Africa
  • Aboitiz Power Corporation - Philippines
  • Japan Coal Energy Center
  • International Coal Ventures Pvt Ltd - India
  • Glencore India Pvt. Ltd
  • Tata Power - India
  • Bharathi Cement Corporation - India
  • Kapuas Tunggal Persada - Indonesia
  • Bayan Resources Tbk. - Indonesia
  • Vale Mozambique
  • Thriveni
  • IMC Shipping - Singapore
  • Bukit Makmur.PT - Indonesia
  • Carbofer General Trading SA - India
  • Manunggal Multi Energi - Indonesia
  • Asmin Koalindo Tuhup - Indonesia
  • Holcim Trading Pte Ltd - Singapore
  • Enel Italy
  • Agrawal Coal Company - India
  • TNB Fuel Sdn Bhd - Malaysia
  • Indorama - Singapore
  • Platou - Singapore
  • Cement Manufacturers Association - India
  • Credit Suisse - India
  • Permata Bank - Indonesia
  • Ministry of Mines - Canada
  • Heidelberg Cement - Germany
  • Indian Oil Corporation Limited
  • Intertek Mineral Services - Indonesia
  • Indian School of Mines
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • Medco Energi Mining Internasional
  • Thai Mozambique Logistica
  • Cargill India Pvt Ltd
  • Siam City Cement PLC, Thailand
  • Videocon Industries ltd - India
  • Ceylon Electricity Board - Sri Lanka
  • Parliament of New Zealand
  • TGV SRAAC LIMITED, India
  • ICICI Bank Limited - India
  • New Zealand Coal & Carbon
  • SUEK AG - Indonesia
  • London Commodity Brokers - England
  • JPMorgan - India
  • Bank of America
  • Sucofindo - Indonesia
  • Sical Logistics Limited - India
  • Moodys - Singapore
  • BRS Brokers - Singapore
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • Binh Thuan Hamico - Vietnam
  • OCBC - Singapore
  • Clarksons - UK
  • Jindal Steel & Power Ltd - India
  • Fearnleys - India
  • Larsen & Toubro Limited - India
  • PowerSource Philippines DevCo
  • Total Coal South Africa
  • South Luzon Thermal Energy Corporation
  • RBS Sempra - UK
  • Kepco SPC Power Corporation, Philippines
  • TANGEDCO India
  • Berau Coal - Indonesia
  • GNFC Limited - India
  • CIMB Investment Bank - Malaysia
  • Iligan Light & Power Inc, Philippines
  • Coalindo Energy - Indonesia
  • Bahari Cakrawala Sebuku - Indonesia
  • VISA Power Limited - India
  • ETA - Dubai
  • Malabar Cements Ltd - India
  • Parry Sugars Refinery, India
  • Star Paper Mills Limited - India
  • Pinang Coal Indonesia
  • Commonwealth Bank - Australia
  • Anglo American - United Kingdom
  • Maybank - Singapore
  • CCIC - Indonesia
  • Orica Mining Services - Indonesia
  • EIA - United States
  • Russian Coal LLC
  • Cosco
  • Jorong Barutama Greston.PT - Indonesia
  • Indian Energy Exchange, India
  • Platts
  • Dalmia Cement Bharat India
  • Metalloyd Limited - United Kingdom
  • McKinsey & Co - India
  • Riau Bara Harum - Indonesia
  • KPMG - USA
  • Coeclerici Indonesia
  • SN Aboitiz Power Inc, Philippines
  • Rudhra Energy - India
  • TRAFIGURA, South Korea
  • Australian Commodity Traders Exchange
  • Bank of China, Malaysia
  • ANZ Bank - Australia
  • IHS Mccloskey Coal Group - USA
  • Sinarmas Energy and Mining - Indonesia
  • Baramulti Group, Indonesia
  • Timah Investasi Mineral - Indoneisa
  • Latin American Coal - Colombia
  • Neyveli Lignite Corporation Ltd, - India
  • Indonesia Power. PT
  • IBC Asia (S) Pte Ltd
  • Independent Power Producers Association of India
  • Shree Cement - India
  • Kohat Cement Company Ltd. - Pakistan
  • Mercator Lines Limited - India
  • Orica Australia Pty. Ltd.
  • Qatrana Cement - Jordan
  • Romanian Commodities Exchange
  • Coal Orbis AG
  • Global Coal Blending Company Limited - Australia
  • Cardiff University - UK
  • Minerals Council of Australia
  • GB Group - China
  • Arutmin Indonesia
  • Petrosea - Indonesia
  • Cigading International Bulk Terminal - Indonesia
  • WorleyParsons
  • Merrill Lynch Commodities Europe
  • Salva Resources Pvt Ltd - India
  • Deloitte Consulting - India
  • NTPC Limited - India
  • Mitsubishi Corporation
  • Karbindo Abesyapradhi - Indoneisa
  • Gujarat Electricity Regulatory Commission - India
  • Leighton Contractors Pty Ltd - Australia
  • Jatenergy - Australia
  • Banpu Public Company Limited - Thailand
  • Australian Coal Association
  • KEPCO - South Korea
  • PetroVietnam
  • HSBC - Hong Kong
  • Gresik Semen - Indonesia
  • Indonesian Coal Mining Association
  • GVK Power & Infra Limited - India
  • Rio Tinto Coal - Australia
  • Lanco Infratech Ltd - India
  • IEA Clean Coal Centre - UK
  • Infraline Energy - India
  • OPG Power Generation Pvt Ltd - India
  • Barasentosa Lestari - Indonesia
  • Directorate Of Revenue Intelligence - India
  • Runge Indonesia
  • Thomson Reuters GRC
  • Adani Power Ltd - India
  • JPower - Japan
  • CNBM International Corporation - China
  • Electricity Authority, New Zealand
  • Mercuria Energy - Indonesia
  • Tata Chemicals Ltd - India
  • CESC Limited - India
  • Kobe Steel Ltd - Japan
  • Maharashtra Electricity Regulatory Commission - India
  • Ministry of Transport, Egypt
  • Uttam Galva Steels Limited - India
  • Geoservices-GeoAssay Lab
  • PetroVietnam Power Coal Import and Supply Company
  • PNOC Exploration Corporation - Philippines
  • Mjunction Services Limited - India
  • Global Business Power Corporation, Philippines
  • Attock Cement Pakistan Limited
  • Bukit Asam (Persero) Tbk - Indonesia
  • Tanito Harum - Indonesia
  • GN Power Mariveles Coal Plant, Philippines
  • Pendopo Energi Batubara - Indonesia
  • Madhucon Powers Ltd - India
  • Power Finance Corporation Ltd., India
  • Toyota Tsusho Corporation, Japan
  • Reliance Power - India
  • Vitol - Bahrain
  • Thailand Anthracite
  • Tamil Nadu electricity Board
  • Malco - India
  • Energy Link Ltd, New Zealand
  • Price Waterhouse Coopers - Russia
  • Grasim Industreis Ltd - India
  • Xstrata Coal
  • SRK Consulting
  • Thiess Contractors Indonesia
  • EMO - The Netherlands
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • The Treasury - Australian Government
  • San Jose City I Power Corp, Philippines
  • Deutsche Bank - India
  • Formosa Plastics Group - Taiwan
  • World Bank
  • Core Mineral Indonesia
  • Kaltim Prima Coal - Indonesia
  • IOL Indonesia
  • Mechel - Russia
  • Britmindo - Indonesia
  • Peabody Energy - USA
  • Alfred C Toepfer International GmbH - Germany
  • Mitsui
  • Ministry of Finance - Indonesia
  • U S Energy Resources
  • SASOL - South Africa
  • Global Green Power PLC Corporation, Philippines
  • Goldman Sachs - Singapore
  • Cemex - Philippines
  • GAC Shipping (India) Pvt Ltd
  • Simpson Spence & Young - Indonesia
  • ASAPP Information Group - India
  • Economic Council, Georgia
  • Bangladesh Power Developement Board
  • AsiaOL BioFuels Corp., Philippines
  • Freeport Indonesia
  • Ernst & Young Pvt. Ltd.
  • Asia Cement - Taiwan
  • KPCL - India
  • Merrill Lynch Bank
  • Lafarge - France
  • Miang Besar Coal Terminal - Indonesia
  • TNPL - India
  • Planning Commission, India
  • Coal India Limited
  • Krishnapatnam Port Company Ltd. - India
  • Karaikal Port Pvt Ltd - India
  • MS Steel International - UAE
  • Interocean Group of Companies - India
  • Ambuja Cements Ltd - India
  • Energy Development Corp, Philippines
  • Argus Media - Singapore
  • Surastha Cement
  • Gupta Coal India Ltd
  • Indika Energy - Indonesia
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • White Energy Company Limited
  • Inspectorate - India
  • KOWEPO - South Korea
  • Savvy Resources Ltd - HongKong
  • Thermax Limited - India
  • Pipit Mutiara Jaya. PT, Indonesia
  • McConnell Dowell - Australia
  • Directorate General of MIneral and Coal - Indonesia
  • Mitra SK Pvt Ltd - India
  • Wilmar Investment Holdings
  • SMC Global Power, Philippines
  • J M Baxi & Co - India
  • European Bulk Services B.V. - Netherlands
  • Gujarat Sidhee Cement - India
  • Samtan Co., Ltd - South Korea
  • globalCOAL - UK
  • Sree Jayajothi Cements Limited - India
  • Renaissance Capital - South Africa
  • SMG Consultants - Indonesia
  • Samsung - South Korea
  • CoalTek, United States
  • Sindya Power Generating Company Private Ltd
  • BNP Paribas - Singapore
  • APGENCO India
  • Coal and Oil Company - UAE
  • Bhatia International Limited - India
  • Kumho Petrochemical, South Korea
  • Georgia Ports Authority, United States
  • Singapore Mercantile Exchange
  • Meralco Power Generation, Philippines
  • Sarangani Energy Corporation, Philippines
  • Coastal Gujarat Power Limited - India
  • Semirara Mining and Power Corporation, Philippines
  • Globalindo Alam Lestari - Indonesia
  • Bulk Trading Sa - Switzerland
  • Meenaskhi Energy Private Limited - India
  • Standard Chartered Bank - UAE
  • Siam City Cement - Thailand
  • DBS Bank - Singapore
  • Edison Trading Spa - Italy
  • UBS Singapore
  • MEC Coal - Indonesia
  • ACC Limited - India
  • Trasteel International SA, Italy
  • Kideco Jaya Agung - Indonesia
  • PLN - Indonesia
  • Ince & co LLP
  • Central Java Power - Indonesia
  • Bhoruka Overseas - Indonesia
  • Antam Resourcindo - Indonesia
  • ING Bank NV - Singapore
  • Arch Coal - USA
  • Maersk Broker