Brighter Energy for Today and Tomorrow
Impact of carbon and gas price on Energy Australia's asset portfolio
Asset
Yallourn
CO2 Int.*
(kg/kWh)
Increase in
carbon price
Increase in
gas price
Comment
1.4
✓
Delta Western
0.90 / 0.92
✓
(Mt Piper/Wallerawang)
Ecogen
0.56 / 0.94
(Newport / Jeeralang)
Tallawarra
0.37
Hallett
Wind
Iona Gas Storage
Narrabri CSM
•
*Calculated on a "sent out" basis
1.05
n/a
n/a
n/a
✓
X
Impairment of $350 million (pre-tax)
Transitional Assistance (cash and free carbon
permits)
■ Lower gross margins following introduction of
carbon pricing but offset by increasing gas
prices
■ Improved position in merit order following
introduction of carbon
Higher efficiency reduces its exposure to
increases in gas prices relative to other gas
power plants
■ Increase market price volatility results in
higher usage and profitability
■
Higher pool prices with no change to cost base
Value of inventory and gross margins
increases with increases in carbon and gas
prices
■ Increase in underlying asset value
Directionally, EnergyAustralia sees the decision in 2012 to remove the floor price of $15 per tonne in the
Australian carbon regime and instead link to the European ETS as positive
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