Renewable energy production is now the cheapest form of new-build power, with solar and wind technologies leading the charge in lowering costs, according to the CSIRO’s GenCost 2018 report.
CSIRO’s Chief Energy Economist and lead author Paul Graham said that the report provides an essential benchmark in informing future energy production policy making.
“Electricity generation costs are a key ingredient into the electricity sector modelling which underpins much of the sector’s strategic planning and policy analysis,” Mr Graham said.
“Our data confirms that while existing fossil fuel power plants are competitive due to their sunk capital costs, solar and wind generation technologies are currently the lowest-cost ways to generate electricity for Australia, compared to any other new-build technology.
“At a global level, the investment costs of a wide range of low emission generation technologies are projected to continue to fall, and we found new-build renewable generation to be least cost, including when we add the cost of two or six hours of energy storage to wind and solar.