Antinuclear

Profits for EnergyAustralia, AGL, and Origin Energy if RET is cut

Renewable Energy Target cut would hit budget: modelling, The Conversation, 18 Aug 14 Michelle Grattan Professorial Fellow at University of Canberra “……..The current arrangement (including the large-scale RET plus existing hydro and small-scale solar PV panels) would lead to about 28% of national electricity coming from renewables by 2020-21. The modelling looked at capping it at 20% (the “reduced” scenario) as well as abolishing the RET altogether.

Reduction of the large-scale RET as proposed by some power companies would bring $8 billion extra profit to coal and $2 billion to gas generators (net present value of future profits 2015-30).

Under current ownership arrangements, EnergyAustralia is the company that would stand to gain the most. Its potential extra profit would be about $1.9 billion if the RET were reduced (and $2.2 billion if it was abolished).

But “if AGL purchases Macquarie Generation, it would become by far the biggest beneficiary of reducing the RET”, with combined extra profits of $2.7 billion if the RET were reduced.

“Origin Energy’s total extra profit would be about $1.5 billion. Origin owns the power station that would emit the largest amount of additional pollution under a reduced RET.” ……..http://theconversation.com/renewable-energy-target-cut-would-hit-budget-modelling-30598

August 18, 2014 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, business, energy