Origin Energy are preparing for themselves for operation in a carbon constrained economy, despite continued debate in Canberra regarding how best to deal with climate change.
In a wide ranging interview with the ABC's Inside Business program broadcast on the 29th of November, CEO Grant King made a number of interesting points;
- Origin have been positioning themselves for some time now to operate in a carbon constrained economy
- The introduction of a CPRS, when combined with the recently passed RET legislation will provide investment certainty
- Origin have large investments in gas as well as a $100 million investment in geothermal technology
Goldman Sachs have estimated that Origin would be a winner under an ETS, with an earnings upside estimated at between 4% - 9%.
In addition, Mr King stated that 500,000 of their customers have chosen more expensive, green energy options.
It would appear that the experience at Origin belies the current pulic debate; specifically that Australians do not believe in climate change and that the proposed CPRS will send power generators to the wall. Read More