Coal costs up in the air
Analysts say Victoria’s increased demand for coal power since the axing of the carbon tax is increasing Australia’s energy industry emissions.
Energy consultants Pitt & Sherry say the carbon emissions intensity of the National Electricity Market (NEM) is up 3.3 per cent since the carbon price was scrapped last year.
Total emissions for the year to January went up by the equivalent of 4 million tonnes, according to Pitt & Sherry’s principal consultant Hugh Sadler.
The increased use of emissions-heavy brown coal would have made a bigger impact, except that the blow was softened by a decline in demand from the manufacturing sector and continued uptake of rooftop solar.
Speaking to Fairfax Media reporters, Dr Sadler said brown coal’s share of total NEM power generation rose to 74.7 per cent last month, approaching its pre-carbon-tax level of 75.1 per cent.
Analysts say coal will continue to be favoured over gas – which is less emissions-intensive – because of the higher prices imposed by the massive gas export market and lack of a domestic reserve policy to keep local prices down.
The NEM provides power to about 80 per cent of Australia’s grid, part of an energy industry that itself accounts for about one-third of Australia's greenhouse gas emissions.