Oct 10, 2012

How heavy industry actually profits from the RET

The government's sweetener offsets to ease the pain the renewable energy target for energy-intensive industries may actually overshoot the predicted rise in electricity costs.

Analysis by Climate Spectator reveals that energy intensive industries will end up saving money on their electricity bills as a direct result of the renewable energy target. This is due to a combination of large exemptions from the cost of the renewable energy target for these industries, combined with the effect of additional renewable energy supply depressing wholesale electricity prices.

When the RET was expanded from its original 9.5 million megawatt-hours to the new target, energy-intensive industries were granted substantial exemptions from the cost associated with the increase in the RET beyond the original target. For industries like aluminium, zinc, steel smelting, oil refining, and paper production the exemption is 90% of the cost.

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One thought on “How heavy industry actually profits from the RET

  1. Geds Shed

    Its interesting hearing the company rhetoric regarding the Carbon tax fallout. I work for Bluescope steel as an operator. They are blaming everything on the current state of the economy. Yes we are in a hard situation re the Aussie dollar and overseas competition, however the business has been plundered for the last 40 years! Instead of re-investing and maintaining, the curse of eternal “profit for the shareholder” has taken its toll. With nothing up their sleeve the GFC hit very,very hard.

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