A new report by CSIRO and AEMO has confirmed renewable energy sources, in particular wind and solar, are the most affordable option for energy generation and storage in Australia.
CSIRO and AEMO’s GenCost 2021-22 report said that although cost reductions could be impacted over the next 12 months due to inflationary pressures, renewable energy will continue to be the cheapest energy source.
The report concluded that after the current inflationary cycle ends that wind, solar and batteries are all projected to keep getting cheaper still.
These findings from globally renowned CSIRO and AEMO confirmed that the new Federal Government is on the right track with its Powering Australia plan which will support the transformation to a renewable grid.
The report considers a range of future scenarios to understand the mix of technologies that may be adopted and costs for each of these possible scenarios.
The status of nuclear energy has not changed in this year’s report. After extensive consultation it concludes there is no prospect of any domestic nuclear projects this decade, given the technology’s commercial immaturity and high cost.
The Federal Government has a long-term plan for the energy transformation underway and the report will deliver the certainty that investors in the energy sector have been lacking for so long.
Federal Minister for Climate Change and Energy, Chris Bowen, said the government is determined that Australia will lead the way in reducing emissions.
“This report shows that renewable energy is the most cost effective way to achieve that,” Mr Bowen said.
“This important report underlines the need for Australia and the world to invest heavily in renewable energy sources to put downward pressure on power prices.”
Federal Minister for Industry and Science, Ed Husic, said CSIRO’s work highlights “that not only will embracing renewables prove to be a quicker and more cost efficient way to reduce emissions”.
“This report will also be important to investors, demonstrating the merit of backing renewable energy as a way to help seriously decarbonise the economy and create jobs in the process.”
