Indonesia

IEEFA Research

IEEFA Indonesia: Coal-Centric State Utility Will Likely Raise Rates by 2020

IEEFA Indonesia: Coal-Centric State Utility Will Likely Raise Rates by 2020

‘New Level of Risk’ Seen in Investing in Outdated Power Generation

May 14, 2018 (IEEFA) — Indonesia’s state-owned utility may raise electricity tariffs to offset its growing costs, concludes an investment-research memo published today by the Institute for Energy Economics and Financial Analysis. The memo—“PLN’s Coal IPP Funding Gap Suggests Tariffs Must Rise in 2020”—comes as the utility plans to bring a more than $1 billion debt […]

IEEFA Report: Indonesia’s State Power Company Continues to Lag Global Shift in Electricity Generation

IEEFA Report: Indonesia’s State Power Company Continues to Lag Global Shift in Electricity Generation

‘Sinking Under the Weight of a Flawed Planning Process That Lacks Crucial Insight Into Clean Energy Trends’

IEEFA — Indonesia’s national power company is perilously out of step with global trends in electricity generation even as it seeks a more than $1 billion infusion from international bond markets, concludes a report published today by the Institute for Energy Economics and Financial Analysis (IEEFA). The report — “Perusahaan Listrik Negara (PLN): A Power Company […]

April 19, 2018 Read More →
IEEFA Indonesia: A Potential Overcommitment to Coal-Fired Electricity Puts a Nation at Risk

IEEFA Indonesia: A Potential Overcommitment to Coal-Fired Electricity Puts a Nation at Risk

Out of Step With a Global Shift in the Energy Economy

We’ve just published a report that calls into serious question Indonesia’s plans to expand its commitment to coal-fired electricity generation. The report—“Overpaid and Underutilized: How Capacity Payments Could Lock Indonesia Into a High-Cost Electricity Future”—analyzes Indonesia’s 2017-26 national energy blueprint and shows how long-term coal power contracts that the country is contemplating will not just […]

August 10, 2017 Read More →
IEEFA Report: Electricity-Sector Opportunity in the Philippines

IEEFA Report: Electricity-Sector Opportunity in the Philippines

The Case for Wind-and Solar-Powered Small Island Grids

May 8, 2017, MANILA (IEEFA.org) — The Institute for Energy Economics and Financial Analysis today published a report outlining how small islands in the Philippines can effectively replace outdated, diesel-fuel electricity-generation systems with solar- and wind-powered grids. The report—“Electricity-Sector Opportunity in the Philippines – The Case for Wind- and Solar-Powered Small Island Grids”—notes that many […]

More News and Commentary

IEEFA op-ed: Losses make Indonesian electric company a high-risk bet

Global trends make coal-fired expansion a hard case to sell

In early May, one of Japan’s major insurers, Dai-ichi Life, became the first Japanese financial institution to restrict lending to coal-fired power plants. This news came only days after Allianz, Europe’s largest insurer, announced it would immediately pull its coverage from coal-fired power plants and coal mines, and barely a fortnight after banking giant HSBC […]

IEEFA Update: Indonesia’s Electric Company Gets Its Bond Deal Done, But Investor Risk Remains

How Much Will the Government Be Willing to Subsidize PLN?

Last week was good to PLN, Indonesia’s state owner power company. Despite chaotic emerging bond markets, which had punished the rupiah and pushed yields on Indonesian bonds higher, PLN was able to paddle safely to shore with a successful US$2 billion bond issue. Flexibility was the key to getting the financing done. With guidance from […]

Government Policy Thwarts Uptake of Renewables in Indonesia

Mongobay: Demand for energy in China and Indonesia continues to drive the resurgence of the latter’s coal industry, setting back efforts in both countries to shift to a greater share of renewable energy. Mining, freight and trade executives were largely upbeat at what was billed as the coal industry’s biggest event of the year, the […]

May 31, 2018 Read More →
IEEFA Indonesia: Coal-Centric State Utility Will Likely Raise Rates by 2020

IEEFA Indonesia: Coal-Centric State Utility Will Likely Raise Rates by 2020

‘New Level of Risk’ Seen in Investing in Outdated Power Generation

May 14, 2018 (IEEFA) — Indonesia’s state-owned utility may raise electricity tariffs to offset its growing costs, concludes an investment-research memo published today by the Institute for Energy Economics and Financial Analysis. The memo—“PLN’s Coal IPP Funding Gap Suggests Tariffs Must Rise in 2020”—comes as the utility plans to bring a more than $1 billion debt […]

IEEFA Asia: Opportunity Now in Broad Electricity Transformation Trends

Global Market Shift Requires Government Policy Adjustments

Rapidly declining costs and technological advances in renewable energy have reshaped the electricity-generation landscape in the three years since the Paris accords. These changes clearly demonstrate that addressing climate risk and promoting economic development are compatible goals—a key point to remember in the run-up to the COP24 conference this December in Poland. A record 51 […]

IEEFA Report: Indonesia’s State Power Company Continues to Lag Global Shift in Electricity Generation

IEEFA Report: Indonesia’s State Power Company Continues to Lag Global Shift in Electricity Generation

‘Sinking Under the Weight of a Flawed Planning Process That Lacks Crucial Insight Into Clean Energy Trends’

IEEFA — Indonesia’s national power company is perilously out of step with global trends in electricity generation even as it seeks a more than $1 billion infusion from international bond markets, concludes a report published today by the Institute for Energy Economics and Financial Analysis (IEEFA). The report — “Perusahaan Listrik Negara (PLN): A Power Company […]

April 19, 2018 Read More →

U.S. Coal Producers’ Hope for an Asian Lifeline Seen as a Long Shot

S&P Global Market Intelligence: U.S. producers are increasingly pinning their hopes for growth on overseas markets as competition from natural gas causes a contraction of the domestic thermal coal market. However, port capacity limitations on the West Coast and the distance from Asian seaborne markets mean most U.S. producers only benefit from the trickle-down effect […]

March 14, 2018 Read More →

More Openings for Renewables Seen in Indonesian Power Markets

Reuters: The developer of Indonesia’s first commercial-scale wind farm says conditions for renewable energy investors are better now than ever before, but more work is still needed for the country to achieve its wind energy targets. A woman takes pictures of wind power plant propeller blades in Sidenreng Rappang, Sulawesi Island of Indonesia, January 15, […]

February 13, 2018 Read More →
IEEFA Asia: ASEAN Coal Companies Are Shaking Their Stranded-Asset Cup at Debt Investors

IEEFA Asia: ASEAN Coal Companies Are Shaking Their Stranded-Asset Cup at Debt Investors

Signs of Growing Skepticism Among Bond Buyers

This year—2018—is when we’ll see whether emerging-market debt investors are ready to start pricing the impact of climate change risk on their investments by discounting the backward-looking coal demand scenario promoted by the International Energy Administration (IEA). Likewise, power-industry planners across the Association of Southeast Asian Nations (ASEAN) have been caught in an information air […]

February 5, 2018 Read More →

Indonesia’s Coal-Fired Electricity Generation Glut

Jakarta Post: State electricity firm PLN has said its electricity sales have only grown 3.62 percent annually from January to November, raising further concerns over excess capacity that could choke the company with multi-billion US dollar costs. Through its electricity procurement business plan (RUPTL) for the 2017-2026 period, PLN has envisioned the development of new […]

December 22, 2017 Read More →