Greater composition of renewables in NEM

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Greenhouse gas emissions as a result of electricity generation have fallen for the last 18 months, according to the latest Carbon Emissions Index from consulting group pitt&sherry.

The drop in emissions, as a result of reduced demand, has slowed over the last few months, with no change in December and only a slight drop in January.

A change in the composition of power given to the National Electricity Market (NEM) has been credited with this change, as brown coal supplies have reduced while renewables increased their output.

Such supplies include hydro, gas and wind generation.

The output from the Snowy Mountains has been at its highest level since 2006, while the Tasmanian hydro system reached its highest level since 2005.

In the 12 months to January 2013, the total renewables comprised 12.1 per cent of the total NEM generation.

Given the rising electricity prices, Dr Saddler - the principal consultant of energy strategies with pitt&sherry - said there has been an impetus for the phenomenon.

He explained: "These are precisely the changes in the electricity supply mix which the carbon tax would be expected to induce."

January also saw gas levels reach their highest ever yearly level.

Posted by Charlie Moore