is the price a price signal?

Is the carbon price (Gillard Carbon Tax) a price signal for geothermal?

I don't think so.

Widely tipped to be about $26/tonne CO2, what does that mean for geothermals and other renewables.

Here is an article on on production cost / MWhr for current technology. Take home facts are: Brown coal $35, gas $50.

http://www.theage.com.au/news/national/nuclear-power-twice-as-costly-as-brown-coal/2006/06/08/1149359883662.html?page=fullpage

Here is an article on the CO2 emissions of some of the worst power stations in the world. Take home facts: Hazelwood has 1500kg CO2/MHr

http://www.wwf.org.au/news/n223/

Here is the PAX presentation showing the cost of various renewables (page 13 of 38)

http://www.asx.com.au/asxpdf/20101124/pdf/31v3bvhv8dt2x1.pdf

So IF (and big IF) the tax gets across at $26/tonne CO2, its likely to favour gas over brown coal, with black coal remaining roughly competitive.

Renewables still have a gap to close unless they can get their costs down. They perhaps may be worse off in some respects as grants funding them will probably be wound back in favour of market pricing.

With higher energy costs consumers may evaluate more energy efficient purchases - cars, white goods, etc.

So my conclusion is that the tax is a good thing for emissions but renewables will still be in the dog house and australian GEL's are still pretty worthless. All the money tipped into them IMHO has been tipped down the drain.

Those seeking their fortune competing against diesel or in markets with better pricing will do well.

Dis: Hold a few PAXOs