Brown coal use in Australia rising since carbon price ditched

Greenhouse gas emissions from electricity generation in Australia have risen in the past year due to increased brown coal use, casting doubt on the country's plans to cut emissions by 5 percent by 2020.

Local media reported on Tuesday wind energy had reached record output but a resurgence in brown coal use since the abolition of the national carbon price in mid-2014 had also occurred.

Brown coal, which is high on emissions but low on price, now makes up around a quarter of energy used for the main electricity grid and has reversed the six-year downward trend of electricity emissions on Australia's largest energy market, according to a report by energy consultants Pitt and Sherry.

Dr Hugh Saddler, the principal consultant for Pitt and Sherry, told the Australian Broadcasting Corporation (ABC) on Tuesday the removal of the carbon tax had made brown coal more competitive to other energy sources.

"As soon as the carbon price was abolished it started to go up, " he said. "What we've been reporting every month since July of last year when the price went off is that brown coal generation immediately started going up."

Brown coal produces 50 percent more carbon emissions than black coal. Together they make up 75 percent of the energy sources for Australia's national energy market (NEM), which supplies 80 percent of the country's consumers.

Wind energy's share of the NEM increased to 5.25 percent but it was unlikely to rise further due to a reduction in government investment, the Pitt and Sherry report said.

The report said should the steadily falling demand for electricity end, stagnant wind generation and falls in gas generation could only lead to an increase in coal use and the associated emissions.

That would put at risk Federal Environment Minister Greg Hunt's statement that Australia will easily meet its target to cut 2000- level greenhouse gas emissions by 5 percent by 2020.