Big gains for gas under carbon scheme

SYDNEY (AAP) - 27 Sept - Power industry emissions would drop by nine per cent while natural gas generation would rise by 40 per cent under the government's carbon pricing scheme, a new study suggests.
Analyst RepuTex has looked at the impact of the proposed carbon tax on the Australian power industry.
A 40 per cent rise in natural gas power by 2020 and a drop of between 20 and 40 per cent in brown and black coal generation would help cut emissions from the power industry by 9.1 per cent, the study found.
RepuTex research director John Metzler said the carbon price will make natural gas pricing more competitive and increase power generation from cleaner fuels.
The government plans to introduce a $23 a tonne price on carbon from mid-2012, followed by a floating price in 2015.
"A $23 a tonne carbon price from day one is not enough to completely switch coal to gas or less carbon intense technologies, but it will drive more investment in cleaner technologies, away from brown coal," Mr Metzler said.
He said the study's modelling assumed a $23 starting price, increasing annually at 2.5 per cent plus inflation over the fixed price period, then growing 10 per cent year-on-year to $45 by 2020.
Mr Metzler said the Hazelwood, Energy Brix and Playford power plants were "potentially in the firing line" under the carbon pricing scheme.