Renewables still lowest cost new-build electricity generation
Renewables, led by wind and solar, have retained their position as Australia’s cheapest new-build electricity generation.
This result comes despite a 20% rise in technology costs, according to CSIRO’s latest GenCost report, an annual collaboration between CSIRO and the Australian Energy Market Operator (AEMO). Industry stakeholders are consulted on revising domestic electricity generation and storage, as well as hydrogen production costs.
The new report highlights concerns that the rapid pace of the global energy transition will cause escalating costs. This is due to the immense scale of manufacturing, raw materials and labour to develop and deploy clean energy technologies.
GenCost modelling indicates that technology cost pressures in Australia will revert to normal levels by 2027. However, the pressures extend to 2030 on the global scale, where the energy transition is faster.
The updated analyses also found that:
- technology cost rises were not uniform due to variations in material inputs and exposure to freight prices
- globally, renewables led by wind and solar are the fastest growing energy source
- batteries are set to play a crucial role in supporting renewable generation and the rapid expansion of electric vehicle deployment in transport.