Joint media release: Renewables cheapest source of electricity

The Hon Chris Bowen MP, Minister for Climate Change and Energy
The Hon Ed Husic MP, Minister for Industry and Science

CSIRO and AEMO’s GenCost 2021-22 report released today confirmed that wind and solar are the cheapest source of electricity generation and storage in Australia. 

The report confirmed renewable energy sources will continue to be the cheapest sources of new electricity generation in Australia, although cost reductions could be impacted over the next 12 months due to inflationary pressures.

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 Australia’s national energy market operator confirm that the Albanese Government is on the right track with its Powering Australia plan that will support the transformation to a renewable grid.

The best way to put downward pressure on energy prices for households and businesses is to help ramp up investment in renewables and that is exactly what this government doing.

This Government has a long-term plan for the energy transformation underway and this will deliver the certainty that investors in the energy sector have been lacking for so long.

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.

Quotes attributable to the Minister for Climate Change and Energy:

“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.” 

“The government is determined that Australia will lead the way in reducing emissions and this report shows that renewable energy is the most cost effective way to achieve that.” 

Quotes attributable to the Minister for Industry and Science:

“CSIRO’s terrific work shows that not only will embracing renewables prove to be a quicker and more cost efficiency 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.”