Increasing electricity prices by A$0.02 / kWh (based on a A$20 / tonne of CO2) is radical action? :shock: Network capacity enhancements have already put electricity prices up A$0.10 - A$0.15 / kWh. That would be equivalent to pricing carbon at A$100 to A$150 / tonne of CO2.
There is NO WAY that increasing electricity prices A$0.02 / kWh will harm anything other than to make renewables A$0.02 / kWh cheaper than coal or gas power.
I would just like to say that $.02 AUD a kWH is actually a big deal to wind farms. If this was direct income to a wind farm (as opposed to being a cost to a coal fired generator), then the approx 150mW windfarm that we are currently looking at (producing over 500,000mW/hours per year) would gain an extra 10million AUD per year revenue. Over an expected 20 years, this is 200 million AUD, which is roughly half the capex cost of the wind farm. This is a huge impact...
Of course this is just a dream, there's no gift to renewables, it's just making non renewable energy fractionally uncompetitive... uncompetitive enough that new coal fired power stations won't be built in favour of other renewable energy alternatives.