The impact of an ETS on the energy supply industry

Source:Energy Supply Association of Australia
"Economic modelling commissioned by electricity suppliers has found the Rudd govt's emissions trading scheme (ETS) could work as intended and "achieve emissions reductions targets by 2020". Aust's GHG emissions would be cut by the closure of coal-fired power stations, mainly in Vic and SA, and by a 14% decline in overall energy demand due to higher prices, the modelling exercise by ACIL Tasman (AT) found. Using simulations of 10% emissions cuts and a carbon price of $45/tonne CO2-e and 20% cuts with a carbon price of $55/tonne CO2-e, it found prices would rise by up to 28%. Investments of $33bn over 12 years would be needed for new energy generation, including renewable energy."