Comments on: For Sale – 7.5 Million Tonnes of CO2 http://www.tta.com.au/energybusiness/electricity/for-sale-75-million-tonnes-of-co2/ The right choice in financial technology solutions Fri, 26 Mar 2010 12:16:54 +1100 hourly 1 By: Joe Maisano http://www.tta.com.au/energybusiness/electricity/for-sale-75-million-tonnes-of-co2/comment-page-1/#comment-6 Joe Maisano Mon, 06 Apr 2009 05:26:52 +0000 http://vm1twiki/wordpress/?p=283#comment-6 GD, Thanks for your point and for reading EnergyBusiness. Note that Munmorah is a particularly dirty plant, having an emissions intensity factor of 1.07t/MWh, so they should qualify for a few credits. Joe GD,

Thanks for your point and for reading EnergyBusiness. Note that Munmorah is a particularly dirty plant, having an emissions intensity factor of 1.07t/MWh, so they should qualify for a few credits.

Joe

]]> By: GD http://www.tta.com.au/energybusiness/electricity/for-sale-75-million-tonnes-of-co2/comment-page-1/#comment-5 GD Fri, 03 Apr 2009 04:10:29 +0000 http://vm1twiki/wordpress/?p=283#comment-5 Interesting article. Except there is a major error. Black coal generators like Munmorah won't get any free permits. The coal-fired generator assistance program only gives credits to the extent that the plant's emission intensity exceeds 0.86t/MWh (measured at the terminals, before auxiliaries and parasitic load). When you add back in auxiliaries and parasitic load, the compensation threshold is close to 1.0t/MWh. Pretty much only brown coal generators are over that threshold. So, Munmorah or its new owners will see none, or very few, free credits. Also, the amount of free credits for power stations is limited to 26M per annum, and only for the first 5 years. Emissions from NEM generators per annum is about 160M tonnes, to which you need to add in WA and NT. So, over the period until 2020 the free permits available to power stations covers less than 8% of emissions, and then only for brown coal generators. 92% of emissions will need to be paid for out of the power station operators' pockets. Interesting article. Except there is a major error. Black coal generators like Munmorah won’t get any free permits.

The coal-fired generator assistance program only gives credits to the extent that the plant’s emission intensity exceeds 0.86t/MWh (measured at the terminals, before auxiliaries and parasitic load). When you add back in auxiliaries and parasitic load, the compensation threshold is close to 1.0t/MWh.

Pretty much only brown coal generators are over that threshold. So, Munmorah or its new owners will see none, or very few, free credits.

Also, the amount of free credits for power stations is limited to 26M per annum, and only for the first 5 years. Emissions from NEM generators per annum is about 160M tonnes, to which you need to add in WA and NT. So, over the period until 2020 the free permits available to power stations covers less than 8% of emissions, and then only for brown coal generators. 92% of emissions will need to be paid for out of the power station operators’ pockets.

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