Renewables remain the cheapest form of reliable energy in Australia now and to 2030, according to the consultation draft of the 2023-24 GenCost report.
GenCost is an annual collaboration between CSIRO and the Australian Energy Market Operator.
According to the report, the Australian government’s plan to deliver a cheaper, cleaner, and more reliable grid through the expanded Capacity Investment Scheme, Rewiring the Nation and the Gas Code is the lowest-cost and best path for the country as aging and increasingly unreliable coal-fired power continues to retire.
Utility-scale solar and onshore wind costs, including transmission and storage, are two to seven times cheaper than new coal and small modular nuclear reactors.
Solar continues to put pressure on energy prices to go down, with the recent 71 per cent drop in wholesale prices in a year due in large part to increased rooftop solar systems.
AEMO also confirmed in its roadmap for future grid, the Integrated System Plan, that a renewable grid with hydro batteries, flexible gas, and transmission is the lowest cost way to deliver a secure and reliable energy grid.
The government recently expanded its successful Capacity Investment Scheme to deliver 32 GW of new capacity.
It also launched Rewiring the Nation deals with New South Wales, Victoria, Tasmania, and Western Australia to keep prices lower for the necessary transmission build.
“The latest GenCost report reiterates what we already know – renewable energy is the cheapest form of energy in Australia now and in 2030, even when accounting for storage and transmission costs,” said Minister for Climate Change and Energy Chris Bowen.
“The Albanese Government is making sure more households and businesses have access to abundant, affordable renewables.”
“CSIRO’s report also shows that renewables, particularly wind and solar, remain frontrunners as Australia’s cheapest and most effective options to deliver a reliable grid to continue to power Australian industry and households,” said Minister for Industry and Science Ed Husic.
“Cheaper renewable energy generation means more clean-green jobs for Australians,” Husic added.
The final report from CSIRO and AEMO is slated for release in mid-2024.
