23 Apr '11, 11pm

Peak Energy: Australian renewable energy target needs some fine-tuning

To defend against accusations of a tax grab, carbon revenue goes three ways: to compensate households and big polluters who are trade-exposed, and to fund low-emissions technologies. With household compensation set in stone, big polluters are exerting maximum pressure for compensation in the form of free permits, and every dollar they get comes straight out of funds available for cleaner technologies. In an all-out brawl for public money, it is hard to see how renewables will win this time around, as the climate change adviser Ross Garnaut had hoped. A carbon price fixed at the mooted level of $20-$25 a tonne will probably trigger a wave of investment in new gas-fired power generation, not renewables. Most analysts say the carbon price has to move north of $70 a tonne before renewables become competitive, based on current costs. But gas is a transitional fuel at best: ther...

Full article: http://peakenergy.blogspot.com/2011/04/australian-renewab...

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