The impact of the carbon tax

10th May 2013

According to the federal government, Australia's carbon pricing mechanism has being doing a whole lot of good cleaning up Australia's electricity sector.

Figures from the National Electricity Market (NEM) show that electricity generation has fallen in many of Australia's power stations, since the introduction of the carbon tax in July 2012.

The carbon tax is one of the mechanisms that has encouraged the use of cleaner energy such as solar power, along with the Renewable Energy Target and funding programs such as the Clean Technology Investment Program.

Between July 2012 and March 2013, the electricity generated between Australia's seven most emissions intensive power stations in the NEM dropped by 16 per cent compared to the same period in 2011-12.

That equates to eight million fewer tonnes of greenhouse gas being emitted into our environment in the period follow the carbon tax's introduction.

Previously, coal-fired power led the NEM supply, but since the carbon price, renewable energy such as hydroelectric power and natural gas have grown in their share, and coal fired generation is significantly down.

This is a promising sign that clean energy production through methods such as solar power will increase, as we move forward and reduce our reliance on fossil-fuels and more traditional energy sources.

Posted by Bob Dawson

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