"I think the Government could minimise the carbon cost by buying Hazelwood, Loy Yang and Yallourn and closing them down.''
But minimising the carbon cost isn't the only relevant issue. Leitch sees several major problems, mainly around replacing the brown coal in the short to medium term and the difficulties with government operation of generation assets. ''Just closing down the power stations really isn't an option,'' he says.
Brown-coal fired plants probably will be replaced by combined-cycle gas turbines. Depending on the capital cost of the gas plant, the managing director of Energy Strategies, Hugh Saddler, says electricity would cost a bit more "
