Australia’s Transfield Services has cut the value of its investment in Loy Yang A power station. This is the first of an expected round of write-downs of power industry assets to be made in anticipation of the introduction of a carbon tax in Australia.

Transfield Services said that it would book a $12.2m loss on its investment in Loy Yang. Transfield holds a 20 per cent interest in Ratchaburi Australia Corporation, which in turn holds a direct 14.3 per cent holding in Loy Yang.

Steve Loxton, chief executive for Ratchaburi Australia, said: “The expectation of a price on carbon was obviously higher when this latest valuation was done in April this year than when the initial valuation was done in April 2007. However, it is difficult to determine what portion of the valuation change is due to carbon pricing.”

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