Black coal use cut down over time: Less new black coal capacity is added in Scenario 1 compared with the business as usual base case. In the period 2016–19 new black coal capacity is displaced by new high efficiency natural gas plant. After 2020, new black coal capacity is added, which takes the form of integrated gasification combined cycle (IGCC) plant combined with carbon capture and storage in some states.
Same story for brown: Increments in brown coal capacity are estimated to be brought forward during 2022-26 compared with the business as usual base case. This is due to the fact that permit prices rise to around $30/t CO2-e and encourage IGCC with carbon capture and storage to be installed one or two years earlier than new brown coal capacity would otherwise be required under business as usual.
Reference: Written comments are being sought by Friday 22 December 2006 in response to the propositions and issues identified in this Discussion Paper. E-mail comments to: submissions@emissionstrading.net.au
Erisk Net, 18/8/2006