Wind power blows coal out

Falling demand and rising gas and coal prices have changed the economics of new power plants, with wind energy cheaper than building fossil fuel power stations, according to the Australian Financial Review.

Even if the carbon tax and the renewable energy target were to be repealed, it would be more expensive to build a coal-fired power station.

Due to the reluctance by banks to invest in coal-fired power stations because of reputational risk and carbon costs, the cost of capital is 50% higher than new wind projects.

Treasurer breaks mining tax promise

Treasurer Wayne Swan has reneged on his parliamentary pledge to provide monthly forecasts of mining tax revenues, citing Australian Taxation Office restrictions on "taxpayer confidentiality" for previous payments, according to The Australian.

Swan is facing a united push from the Coalition and the Greens in the Senate for the ATO to provide details of the budget's projected $2 billion payments for the Minerals Resource Rent Tax this financial year.

However, he has fobbed off demands to release details of revenue forecasts.

Coalition attacks Whitehaven delay

The Coalition has attacked the federal government’s move to delay its decision on the future of Whitehaven Coal’s star Maules Creek asset in New South Wales.

The Australian reports that yesterday’s announcement of a delay by the Gillard government has been hailed by the Opposition as a political strategy in the lead-up to this year’s election, rather than a decision based on environmental concerns.

Whitehaven announced a significant earnings downgrade last week.

Yesterday, the company expressed "extreme disappointment" at federal Environment Minister Tony Burke’s announcement that he was delaying his decision on Maules Creek until April 30.