CSIRO backs emissions trading scheme over RETs to lower power prices
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A carbon emissions trading scheme in the electricity sector could lead to an average saving of $216 per year on household power bills, a major report has concluded.
The CSIRO and Energy Networks Australia (ENA) have spent two years analysing the future of Australia's electricity system.
They concluded a system where high-carbon emitting power generators have to buy "credits" from lower-emitting generators would be the least expensive way for Australia to reach its carbon reduction targets.
The two organisations have been less enthusiastic about technology-focused emission-reduction frameworks.
This includes the setting of renewable energy targets (RETs), for example, which they said were far more expensive and politically contentious.
"We think the emission intensity scheme is the clearest area where there is potential for consensus among the various policy-makers in state and federal governments beyond the election cycle," ENA chief executive John Bradley said.
"We focus on the outcome — which is the emission reduction — and we allow the market to produce the solutions."
Mr Bradley said market-driven solutions were most likely to drive down the cost of wholesale power, which he said should then be passed on at the retail level.
"Customers could save over $200 per year through technology-neutral approaches like an emission intensity scheme compared to current business-as-usual policies," he said.
The Federal Government on Monday said a carbon price for power companies, rather than an economy-wide "carbon tax", was set to be considered as part of a climate change review.
The Department of the Environment and Energy will undertake the review next year to examine the best ways to meet Australia's climate commitments.
Topics: federal-parliament, environment, government-and-politics, australia
