1 min read

CSIRO and AEMO Cost Report: Wind and Solar Farms Will Be Cheaper than Coal

Last month the CSIRO and Australian Energy Market Operator (AEMO) released a joint cost report on the state of coal versus renewable costs, as reported by the Sydney Morning Herald. Here are the findings from that report.

Renewable vs Coal Costs

The report found:

  • New solar and wind farms are cheaper than new coal-fired power.
  • If nuclear power is added to Australia’s energy mix, it will be the most expensive form of energy.
  • Gas is the cheapest form of power compared with other new technologies.

More Batteries Needed to Keep Up With Solar and Wind

As the amount of renewable generation grows in Australia, more batteries will be needed to support this. A stable renewable and battery infrastructure would encourage consumers to rely less on the grid at peak times.

CSIRO chief energy economist Paul Graham said renewables are lowering energy prices across Australia, however, more money into storage technologies is essential because solar and wind still present risks during high demand periods. Batteries added into the energy infrastructure will make the entire process even cheaper.

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.

– Paul Graham, CSIRO

Planning for Demand Management

The CSIRO has also stated in the report that demand management strategies will become increasingly important as more renewables and storage are added into the mix.

Resources and Links

Read the article on Sydney Morning Herald.

Read about this news on the CSIRO site and download the report here.

Solar Power Will Grow Six Times as Sun is the Cheapest Power Source

Bloomberg reported the amount of electricity generated using solar panels is forecasted to expand as much as 6 times by the year 2030 as the cost of...

Read More

This Week in Solar: Solar Trust Centre Weekly Recap

Here are some solar news stories you may have missed from this week. Click on the links to read these stories in more detail.

Read More

New $15M Renewable Hydrogen Gas Project in New South Wales

The Sydney Morning Herald reported yesterday that energy company Jemena and ARENA have partnered to develop a hydrogen gas facility in western Sydney.

Read More