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This paper is the second of a two part study that considers least cost, greenhouse gas abatement pathways for an electricity system. Part 1 of this study formulated a model for determining these abatement pathways, and applied this model to Australia's NEM (National Electricity Market) for a single reference scenario. Part 2 of this study applies this model to different scenarios and considers the policy implications. These include cases where nuclear power generation and CCS (carbon capture and storage) are implemented in Australia, which is presently not the case, as well as a more detailed examination of how an extended, RPS (renewable portfolio standard) might perform. The effect of future fuel costs and different discount rates are also examined. Several results from this study are thought to be significant. Most importantly, this study suggests that Australia already has utility scale technologies, renewable and non-renewable resources, an electricity market design and an abatement policy that permit continued progress towards deep greenhouse gas abatement in its electricity sector. In particular, a RPS (renewable portfolio standard) appears to be close to optimal as a greenhouse gas abatement policy for Australia's electricity sector for at least the next 10–15 years. [ABSTRACT FROM AUTHOR]

This paper evaluates the economic feasibility of SPCC (solar-assisted post-combustion carbon capture) at a coal power plant near Sydney, Townsville and Melbourne for implementation in 2020. A review of Australia's carbon and renewable energy policy is performed first, after which the merits of application of each incentive for SPCC are compared. Incentives such as subsidies, preferential discount rate, carbon tax and RECs (renewable energy certificates) are evaluated. No single incentive on its own, and within reasonable limits, is able to provide a favourable economic performance for power plant based renewable powered CCS (carbon capture and storage). However, once the compounded effect of carbon tax and electricity price increase is taken into account, a carbon price as low as A$ 25/tonne-CO 2 and a REC price as low as A$ 35/MWh e is able to produce a positive net benefit in Townsville, while a slightly higher carbon price and REC price is required for Sydney. Melbourne performs poorest amongst the three locations, where substantially higher incentives would be needed for economic feasibility. The level of incentives required for SPCC to become feasible are found to fall in the range of current Australian policy incentives accessible to renewable energy technologies for stand-alone power generation. [ABSTRACT FROM AUTHOR]