Investment in Australia’s Gas Power Plant Could Double

17 October 2010 (Last Updated October 17th, 2010 18:30)

Investment in Australia's new gas-fired power generation may double to A$14.7bn ($14.5bn) in the next six years, if prices on carbon emissions are imposed. According to the Fitch Ratings even without a carbon price, A$7.8bn may be invested in gas-fired plants. Australian Prime M

Investment in Australia's new gas-fired power generation may double to A$14.7bn ($14.5bn) in the next six years, if prices on carbon emissions are imposed.

According to the Fitch Ratings even without a carbon price, A$7.8bn may be invested in gas-fired plants.

Australian Prime Minister Julia Gillard has set up a committee to study the effect of a price on carbon to curb greenhouse gas emissions.

"The expectation of carbon pricing seems sufficiently high to deter large-scale investment in new coal-fired plants," the Sydney-based Fitch analysts said.

Melbourne-based power supplier TRUenergy Holdings has expressed willingness to invest in gas-fired electricity generation if potential investment were to be funded by debt.

TRUenergy operates the Yallourn coal-fired power station, supplying 22% of Victoria state's electricity.

Coal accounts to more than 80% of the Australia's power production, according to Bloomberg.