News

Impact of Carbon Pricing on renewable energy development in Australia

Latrobe Valley, Victoria, Australia (source: flickr/ yewenyi, creative commons)
Alexander Richter 24 Jul 2011

A recent article published in Australia, looks into the impact the recently announced carbon pricing and clean energy support initiatives will have on renewable energy sector in Australia, looking at particular geothermal companies.

A recent article published in Australia, looks into the impact the recently announced carbon pricing and clean energy support initiatives will have on renewable energy sector in Australia, looking at particular geothermal companies.

“Australian clean energy firms are poised to reap the benefits from the Federal Government’s carbon pricing and clean energy support initiatives announced on July 10, in what will be the largest emissions scheme outside Europe.

The Clean Energy Future package, which is Australia’s most sweeping economic reform in decades, opens the door for companies that generate non-polluting solar, wind, geothermal, tidal or other renewable energy.

The $13 billion of investment announced through the Clean Energy Finance Corporation and Australian Renewable Energy Agency will foster development of renewable energy as it creates more investment certainty in the renewables sector.

In recent weeks, prices of several of the renewable energy companies have soared as investors try to pick the winners from the Australian Government’s new policy.

The idea of investing in the booming renewable energy sector may be appealing but doesn’t necessarily translate into good investments or returns. So how best to play it?

Among the 50-plus renewable or sustainable energy companies there are some with a sound track record, but there are also plenty of others which are in very early stages of development, have unproven technologies or have no earnings or management history.

Geothermal is the most promising of the local renewable sectors and has been the biggest winner in the market in recent weeks. Geothermal energy, literally energy obtained from hot areas under the earth’s surface, is one of the areas where Australia has a high level of technical skill.

Geothermal energy from South Australia’s Cooper Basin, by some calculations, is capable of providing a significant percentage of the energy requirements of the eastern states.”

For the full article with a view on Australian geothermal companies, such as Geothermal Resources, Geodynamics, Earth Heat Resources, Greenearth Energy see link below. It unfortunately doesn´t look at other players like Green Rock Energy, technology firms such as Wasabi Energy and developer KUTh Energy.

Source: Proactive Investors