Geodynamics Limited

[Paradox]

Renewable Energy Certificates ....

I don't fully understand how this works - correct me if I am wrong - but it seems to me the Renewable Energy Certificates offset the cost of producing electricity from renewable sources like so ....

Government regulator:
http://www.greenhouse.gov.au/markets/mret/index.html

* For each MWhr produced, a renewable energy certificate is issued.

* These are tracked financial instruments which can be traded on the open market. They fluctuate in price according to demand for certificates from non-renewable electricity suppliers who have not met their mandatory 2% target set by the government and need to buy REC's.

* Price projections are that REC's may fluctuate in value between $30 and $40 per MWhr
REC Price Projections:
http://www.greenhouse.gov.au/markets/mret/mma/pubs/3_projects.pdf

* Electricity generation from some renewable energy sources can range in cost up to double the cost of non-renewable sources. The REC's give these expensive producer's 50% or more rebate to make their production cost competitive.

* HDR from the Cooper Basin is expected to be cost competitive with non-renewable sources without any REC support ($40/MWhr). Trading REC's at $30 to $40 will almost neutralize the cost of production.

... sounds to good to be true

..... I must be wrong

....... Paradox