The GenCost report, which has been released each year by CSIRO...

The GenCost report, which has been released each year by CSIRO and AEMO since 2018, showed batteries were set to play a crucial role in supporting renewable generation in the electricity sector.


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Global race to net zero pushes up technology prices by 20pc
Mark LudlowJul 18, 2023 – 12.00am

Large-scale solar and wind is the cheapest form of new-build power generation. none

This has been exacerbated by the war in Ukraine. Costs are not expected to return to normal levels until 2027, just three years before Australia is supposed to reach 82 per cent renewable energy.

“During the recovery from these global events, various input costs are showing signs of moderation,” Mr Graham said.

“However, there is an expected delay due to future price uncertainties and the robust demand associated with the global energy transition.”


Mr Graham said analysis by the CSIRO and AEMO showed technology costs had mostly peaked and were unlikely to extend beyond 2030 as global manufacturers step up to meet demand.

The report revealed wind and solar were the cheapest form of generation now and out to 2050.

Nuclear power was not considered an option until 2030, with small modular reactors (SMRs) estimated to cost (for the levelised cost of electricity) between $200 to $350 per megawatt hour from 2030. This was about four to seven times more expensive than solar PV and onshore wind generation ($40 to $70 per megawatt hour).

SMRs had also become less economically competitive since the draft GenCost report in December where the cost range was between $140 to $310 per megawatt hour.

This was partly due to the inclusion of the new technology option of offshore wind which has an advantage because it does not require traditional locations for renewables.

The exclusion of nuclear power to 2030 – where there is a lack of political consensus on the technology – put it even further behind on the cost scale.

“With nuclear SMR costs not improving due to deployment, their costs increase due to assumed increasing land costs which impact all technologies,” the report said.

While the cost of nuclear power is expected to be disputed by advocates of SMRs, including Opposition Leader Peter Dutton who this month called for a “nuclear renaissance”, it will further embolden the Albanese government, which has consistently shot down low-emissions nuclear power as an option to help reach net zero by 2050.

Hydrogen, which is also being spruiked by governments across the world and advocates such as Fortescue Metals Group founder Andrew Forrest, did not fare much better than nuclear in terms of cost, at between $280 to $350 per megawatt hour.

The GenCost report, which has been released each year by CSIRO and AEMO since 2018, showed batteries were set to play a crucial role in supporting renewable generation in the electricity sector.