Origin welcomes investment opportunities identified in esaa report on emissions trading
ASX/Media Releases
25 Jul 2008
Origin Energy today welcomed the release of a report by the Energy Supply Association of Australia (esaa) on the impact of an emissions trading scheme on the Australian economy. In particular Origin is encouraged to see further confirmation of the substantial investment in new generation that will accompany the transition to a low-carbon economy.
“We are heartened by the release today of the esaa modelling. The more than $30billion of new investment in new generation capacity modelled in the report will present very real economic opportunities for many businesses and for new Australian jobs,” Carl McCamish, Executive General Manager of Corporate Development at Origin Energy said today.
“Companies like Origin have been preparing for the transition to a lower-emission economy by investing over time in gas-fired generation, renewable generation and research and development into new technologies including solar and geothermal.
“Origin has already committed to developing 2,000 MW of low emission gas and renewable generation. This will represent an investment of approximately $2.3billion.
“This substantial private sector investment in new generation capacity will need to be supported by a planned and nationally coordinated approach to investment in transmission networks in order to ensure an orderly transition to a lower-carbon energy system in Australia,” Mr McCamish continued.
The esaa report also foreshadows an increase in consumer electricity prices that would flow from the operation of an emissions trading scheme. Origin strongly endorses the Government’s Green Paper and the Draft Report of the Garnaut Review which both call for assistance to households, particularly those suffering financial hardship, through revenue raised from auctioning carbon permits under an emissions trading scheme.
“We are committed to a comprehensive emissions trading scheme being implemented in Australia and we are aware that this will come with increased costs to businesses – including ours – as well as to households,” said Mr McCamish.
“We agree that a significant portion of the revenue raised from carbon permits needs to be redistributed to hardship customers to ease the transition to a low carbon economy. Origin believes we can also help by empowering households with information to help them understand their energy usage and by offering products to help households reduce their carbon footprint (household emissions).
Since listing on the ASX in 2000 Origin has been focussed on building a sustainable business that can adapt to and help provide solutions to, some of the key challenges presented by the need to combat climate change.
“We are working to increase the low carbon solutions we offer our customers which include installing energy efficient appliances, solar panel systems, both gas and solar hot water systems and water tanks,” said Mr McCamish.
For further information please contact:
Media
Michelle Hindson
Acting General Manager, Corporate Communications
Ph: 02 8345 5217
Mobile: 0414 207 049
Investors
Angus Guthrie
Manager Investor Relations
Ph: 02 8345 5558
Mobile: 0417 864 255
About Origin Energy
Origin Energy is Australasia’s leading integrated energy company focused on gas and oil exploration and production, power generation and energy retailing. Listed in the ASX top 25 the company has over 3,500 employees, is the largest holder of gas reserves in eastern Australia and is the second largest energy retailer in Australia, servicing over 3 million electricity, natural gas and LPG accounts. Origin’s strategic positioning and portfolio of assets provides flexibility, stability and significant opportunities for growth in the ever changing energy industry. Origin is also the major shareholder in Contact Energy of New Zealand. The company has a strong focus on ensuring the sustainability of its operations, and in 2007 the company received the Ethical Investor 2007 Sustainable Company of the Year award.