The Finkel report offers a stable policy environment out to 2030. This is the key. While coal power isn't penalised, it won't receive an incentive payment (certificate). As such, cleaner tech (wind and solar) will receive certificates, along with other 'less clean' technologies that produce below emission limits (ie. high efficient natural gas). To me, this reflects the continuation of the current framework (LGCs and RECs) but with a slight shift on emphasis.
Under a CET (or LET), a proportion of power would have to generated from low emission sources.
Perhaps I missed it, but I don't think the Finkel report goes into the setting of the value per certificate. Right? However, I think this is important:
"Unlike an EIS, where the onus was on generators to trade in certificates, under a CET it would be on electricity retailers who would be obliged to purchase the new certificates to show that a share of their electricity comes from low-emission sources". (article: How the plan will work, AFR).
I also doubled my holding last week.
Baron
IFN Price at posting:
82.0¢ Sentiment: Buy Disclosure: Held
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