Ministers for the Department of Industry, Science and Resources
The latest GenCost report from the CSIRO and the Australian Energy Market Operator (AEMO) makes one thing absolutely clear: in an uncertain world, the lowest-cost, most reliable power in Australia is coming from renewables backed by batteries.
Conflict in the Middle East is disrupting energy markets, driving gas price volatility, and putting pressure on supply chains.
Yet Australian generation prices are falling – because our energy system is increasingly backed by solar PV and batteries.
Conflict overseas cannot stop Australian sun from shining on Australian solar panels, stored on Australian roofs.
The expert independent analysis confirms the work of the Albanese Government to build a modern, more resilient and sovereign energy grid is working.
After a decade of neglect by the Coalition, average generation prices hit $189/MWh in 2022.
Under the Albanese Labor Government’s plan to deliver a modern grid backed by renewables, batteries and firming capacity, those prices have fallen sharply to $104/MWh.
As more wind, solar and battery capacity comes online, electricity futures show generation prices dropping to $80-90/MWh by 2030.
To the Coalition’s dismay, batteries are now competing directly with gas generation in peak periods – pushing down evening prices and improving reliability at the times households and businesses need it most.
Renewables like solar and wind remain the cheapest forms of new generation, especially when compared with nuclear power.
When conventional large-scale nuclear generation is modelled, solar remains up to eight times cheaper and wind is up to four times cheaper.
Compared with nuclear Small Modular Reactor technology, solar is up to 11 times cheaper and wind is up to five times cheaper.
And the first nuclear facility could cost over double what’s projected because of a “first-of-a-kind premium” as Australia has no established nuclear industry.
In a time of global uncertainty, energy security and energy resilience matters.
The Albanese Labor Government is focused on building that resilience – through credible policy, consistent settings, and serious investment in the infrastructure Australia actually needs.
Because a modern, abundant and uniquely Australian energy system backs in Australian industry, creates good jobs and strengthens our industrial base for the long term.
The Coalition’s approach is a dead-end. They campaign against the cheapest forms of energy available today – while wanting to keep ageing coal plants running for decades and building the most expensive form of generation Australia has ever considered.
Quotes attributable to the Minister for Industry and Innovation and Minister for Science, Senator Tim Ayres:
“The evidence from the independent expert bodies CSIRO and AEMO shows that renewables and batteries backed by gas continue to be the lowest-cost energy generation.
“Reliable affordable energy is essential to building a stronger, more competitive Australian industrial base.
“That is how we build regions and outer suburbs that are fit for the future – creating good blue-collar jobs and giving businesses the confidence to invest for the long term.”