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.