Change, no matter at what stage is loathed at, but at times circumstances just points to the inevitable. This is how the staunch supporters of the carbon tax in Australia perceive their advocacy in the days to come.

The Clean Energy Council encourages Australians to look deeply at the proposal and perhaps more gains will pay off in starting anew instead of relying on the old ways.

The companies like Alstom and Infigen Energy, among others, are just a few among the staunch supporters of the carbon emissions scheme pushed by the Labour-led government of Prime Minister Julia Gillard.

Although they are quite aware that the number really would not lie and a $23/tonne price for carbon would certainly increase some costs of goods and services in the economy, they believed that the after or its impact for the long term should also be highlighted.

New investments, new opportunities

One of the feared services deemed to carry pass on rates from the new carbon tax to be implemented in July 2012 is the electricity industry.

Australia's energy generation sector will have the additional price burden set at $20/tonne.

Nevertheless, Alstom Australia thinks otherwise. In a statement, the company has simulated that More than $3.5 billion dollars of annual investment will return to the electricity generation sector by 2015 as a result of the government's carbon price, according to an internal report by Alstom Australia.

The report, which was prepared by the company to anticipate likely changes in Australia's energy generation environment, showed the importance of carbon price certainty for the sector.

"The lack of certainty around a carbon price had crippled investment in the power generation sector. From 2008 to 2010 the market for utility scale generation fell from $4bn a year in 2008 to just $1bn in 2010," said Alstom Australia CEO Chris Raine.

"Alstom's analysis indicates that if the carbon price passes through parliament, average investment will increase to $3.5bn a year by 2015. That is a 250% investment rebound over five years. This will be further encouraged by the Renewable Energy Venture Capital Fund, which means we are likely to see a return to a healthy market size by 2013."

The report indicates that 50% of new investment in constructing utility‐sized generation is likely to go towards building baseload and peaker power provided by flexible gas‐fired power generation plants.

The Alstom report has calculated that renewables will take up the remaining 50% of total investment, comprising mainly of wind but also increasingly solar thermal and other technologies.

Alstom also stated that the carbon price makes carbon capture and storage a more feasible option for Australia, both on future gas and coal‐fired facilities. But government involvement is absolutely essential to support the commercialisation of this technology.

"If this legislation passes through parliament, we will see a marked transformation of the electricity generation sector," Mr Raine said.

"It will be a signal to re‐skill the workforce in the power generation sector to accommodate this change, as recognised and partially funded in the Government's Clean Energy Skills package. However, the significant lifespan of coal‐fired assets means they will still play a major role in our power generation capacity for years to come."

Today coal fired electricity accounts for about 80 percent of Australia's generation mix. With the average age of Australian baseload plants, currently at over 30 years, it is important to assess what we can do to improve their performance as we transition to lower CO2 technologies. This could include reducing the CO2 intensity of existing fossil fuelled fleet, he noted.

"Alstom offers solutions for all power generation technologies from coal, gas, hydro, and wind to emerging technologies such as solar thermal, tidal, wave and geothermal," Mr Raine said.

"Australia needs electricity wherever it comes from. By removing the uncertainty, investment can return to the market place and we can get back to providing reliable and affordable electricity for Australia," he added.

Once in a generation

The carbon price package is a "once in a generation" opportunity to transform Australia's energy sector and create clean energy jobs and investment, according to the industry's peak body The Clean Energy Council.

Clean Energy Council Director of Strategy Kane Thornton said putting a price on carbon pollution and directing a substantial portion of the carbon price revenue to renewable energy and energy savings would "turbo charge the clean energy sector".

"It will create $100 billion in investment to 2050, creating new jobs for future generations," he said.

"The carbon price scheme proposed should give renewable energy companies and investors the long term certainty that investment in clean energy is an investment in the future. It will support the accelerated roll out of proven clean energy technologies like solar power, wind power and bio-energy while also allowing Australia to develop new technologies like geothermal, ocean and large scale solar.

"Along with the existing 20 per cent Renewable Energy Target and arrange of other existing policies, the new initiatives announced today will give us what we need to deliver action on carbon pollution and transition Australia to a clean energy future.

"Clean energy has come a long way in the last decade and we look forward to showing this nation what we can achieve in the national interest.

Key announcements by the Federal Government include the new $10 billion Clean Energy Finance Corporation, which will use carbon price revenue to leverage private sector investment in early stage clean energy technology.

Mr Thornton said the Clean Energy Finance Corporation was something the Clean Energy Council had been promoting for some time, to ensure Australia takes advantage of its competitive advantage in a whole range of renewable energy technologies.

"This is a critical reform to address decades of under-investment in clean energy. The establishment of the Clean Energy Finance Corporation and the Australian Renewable Energy Agency as independent bodies will help to insulate it from the political cycles of the day and keep it focused on providing maximum value for investment dollars and the clean energy sector," he said.

"We look forward to working with the government, the Greens and the rest of the MPCCC on key aspects of these announcements to ensure they are legislated and implemented to maximise outcomes for the clean energy sector.

"We also welcome the commitment to further work on a National Energy Savings Initiative. It is both good policy and plain common sense to match a carbon price with measures to help households and business better manage their electricity bills," he said.

Mr Thornton said a legislated carbon price would help to give the whole power industry the stability required to invest in new generation assets for the future.

"The uncertainty surrounding this issue to date has stifled new investment and we look forward to the cleaner energy investment that this package will deliver," said Mr Thornton.