great opportunity, page-21

RETROFIT
Certainly will be an appropriate name.

http://www.aar.com.au/pubs/cc/foccjul11.htm

Coal-fired electricity generation
In recognition of the significant impairment of the value of coal-fired electricity plant that will result from the imposition of a carbon price,9 and despite Professor Garnaut's opposition, $5.5 billion worth of assistance will be provided to emissions-intensive coal-fired electricity generators (ie those with an emissions intensity of more than 1tCO2-e/MWh of electricity). This assistance, which will take the form of cash in the first year (2012/13) and free carbon permits in subsequent years, will be provided in equal annual instalments over the five year period to 2016/17. The on-going provision of this assistance to a generator will be conditional on:

the generator adopting a clean energy investment plan showing how it will reduce its emissions; and
the capacity of the generation plant not being reduced unless the market operator determines that such a reduction in capacity will not have an adverse impact on power system reliability (including because the generator replaces that capacity with lower emissions-intensity capacity).


NO CARBON CAPTURE ,GETTING CCS ready is a condition but will not be sufficient to obtain funding.


Complementary measures
While a market-based carbon pricing scheme is generally recognised as the most cost effective way to deliver a given amount of abatement, 'complementary' measures (particularly emissions reductions programs funded by direct spending or regulatory intervention) are comparatively expensive.10 It is imperative that governments review federal and state schemes to determine whether they continue to be justified where there is a carbon price. So, for example, it seems reasonably clear that both the New South Wales Greenhouse Gas Abatement Scheme and Queensland Gas Electricity Certificate Scheme should (and will) be terminated when the carbon pricing scheme is introduced – although appropriate transitional arrangements will need to be put in place.

The carbon pricing scheme proposal includes a number of new complementary measures and related governance designed to promote renewable energy, improve energy efficiency and conserve biodiversity and carbon stocks in the land sector.

An independent Clean Energy Finance Corporation will be established with $10 billion (over five years) in government funding to support the deployment and commercialisation of renewable energy, low emissions intensity and energy efficiency technologies (excluding carbon capture and storage).11 This funding will be provided through equity investments and loans (including loan guarantees). Investments will be divided into two streams: a renewable energy technologies stream and a broader stream focused on renewable energy, energy efficiency and other low-emissions technologies, with approximately $5 billion to be allocated to each stream.