The Commonwealth Scientific and Industrial Research Organization (CSIRO) GenCost report shows renewables remain the cheapest new electricity technology in Australia.
From pv magazine australia
New analysis in the CSIRO’s 2023-24 GenCost report shows that in the past decade the cost of large-scale solar has fallen by 8%, while onshore wind has risen by 8%. Both remain the cheapest form of new electricity technology in Australia.
The report, prepared by CSIRO with the Australian Energy Market Operator, compares the costs of building new coal, gas, solar, onshore wind, offshore wind, batteries and nuclear generators.
For the first time, the report includes large-scale nuclear technology, which has been identified as the most expensive technology.
The report shows stationary renewables, including transmission and storage costs, provide Australians with the cheapest power, at a price of between A$83 ($55.25) per megawatt-hour and A$120 per megawatt-hour in 2030. Were modular nuclear reactors Will small businesses be able to operate in Australia by 2030? By 2030, the cost of energy will reach A$382 per megawatt hour.
CSIRO Energy Director Dietmar Torber said GenCost was committed to strong stakeholder engagement, with the recent consultation attracting more than 40 written submissions and more than 200 participants in industry webinars.
“The feedback provided by the energy community each year is invaluable, given that future cost projections for electricity generation, storage and hydrogen production can fluctuate significantly, and no single technology can deliver our transition to net zero,” he said. “Whether the input GenCost receives is highly specialized or simply calls for a particular path, our considerations are policy and technology neutral.”
While capital costs for large-scale solar fell by 8%, costs associated with rooftop solar fell by 2%, while capital costs for battery storage rose by 2%.
The report quoted engineering consultancy Aurecon as saying that current costs for small-scale residential batteries are estimated at AU$14,400 for a 5 kW/10 kWh system, or AU$1,455 per kWh, including installation – almost double the cost of large-scale batteries. Projects.
AEMO Executive General Manager for System Design Merryn York said GenCost is one of several key reports helping to design a sustainable electricity system for Australia.
“Annual collaboration with industry to assess electricity generation costs is critical to strategic planning and policy analysis, including our Integrated System Plan,” she said.
Paul Graham, CSIRO’s Chief Energy Economist, welcomed the stakeholder feedback that contributed to the latest report.
“GenCost is flexible to adjust assumptions, scope and methodology in response to constructive feedback received during the formal consultation period and throughout the year,” he said. “For example, our approach to including large-scale nuclear technology provides a logical, transparent and politically neutral way to determine the cost of a potential deployment scenario in Australia.”
The report based its broad estimates of nuclear costs on South Korea’s successful nuclear program and adjusted for differences by examining the proportion of new coal generation costs in each country.
The estimated costs can only be achieved if Australia commits to a sustained nuclear build-out programme, which would require an initial investment of more than A$8 billion.
GenCost evaluated submissions regarding the suitability of large-scale nuclear power generation in the Australian electricity system and found that although generation units of this size are unprecedented in Australia, there are no known technical barriers.
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