Unsubsidised renewable energy is now cheaper than electricity from new-build coal and gas-fired power stations in Australia, according to new analysis from research firm Bloomberg New Energy Finance.
This new ranking of Australia’s energy resources is the product of BNEF’s Sydney analysis team, which comprehensively modelled the cost of generating electricity in Australia from different sources. The study shows that electricity can be supplied from a new wind farm at a cost of AUD 80/MWh (USD 83), compared to AUD 143/MWh from a new coal plant or AUD 116/MWh from a new baseload gas plant, including the cost of emissions under the Gillard government’s carbon pricing scheme. However even without a carbon price (the most efficient way to reduce economy-wide emissions) wind energy is 14% cheaper than new coal and 18% cheaper than new gas.
“The perception that fossil fuels are cheap and renewables are expensive is now out of date”, said Michael Liebreich, chief executive of Bloomberg New Energy Finance. “The fact that wind power is now cheaper than coal and gas in a country with some of the world’s best fossil fuel resources shows that clean energy is a game changer which promises to turn the economics of power systems on its head,” he said.
Bloomberg New Energy Finance’s research on Australia shows that since 2011, the cost of wind generation has fallen by 10% and the cost of solar photovoltaics by 29%. In contrast, the cost of energy from new fossil-fuelled plants is high and rising.
BNEF’s analysts conclude that by 2020, large-scale solar PV will also be cheaper than coal and gas, when carbon prices are factored in. By 2030, dispatchable renewable generating technologies such as biomass and solar thermal could also be cost-competitive.
Re-post of Renewable energy now cheaper than new fossil fuels in Australia
Source: Bloomberg New Energy Finance
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Dear all,
About four or five years ago now, I calculated the financial costs and financial benefits of my parents installing solar panels on their roof. Without any subsidisation by any layer of government, breakeven came in the 16th year. Panels with a 40 year guarantee are available. My parents had the money; they installed the solar panels.
My father, a conservative fellow if there ever was one, has been happy with the result. He has also heard people say “oh, the property has solar panels.. great, I will not have to pay as much/anything for my electricity use.”
In short: even financially – the last measure to reflect costs and benefits – solar is becoming, more and more and more, the way to go.
A fine article above. Thank-you.
Best regards,
Tom Livanos.
tom.369@hotmail.com