Generation costs counted
Consultation is open for a plan to drive the future of energy generation in Australia.
The draft 2023-24 GenCost Report, a pivotal economic study on the costs of future electricity generation, has been released for public consultation.
This report, a collaboration between CSIRO and the Australian Energy Market Operator (AEMO), offers insights into the evolving energy production costs in Australia.
One of the big advancements in this year's report is the inclusion of pre-2030 integration costs for variable renewables.
Despite this inclusion leading to higher cost estimates, variable renewables like solar and wind power remain the most cost-effective options for new-build electricity generation.
Dr Dietmar Tourbier, CSIRO’s Director of Energy, says GenCost will be used in guiding decision-makers towards reliable, low-cost energy solutions crucial for powering Australia's future.
The report shows a general stabilisation of new-build costs since the 20 per cent increase reported last year.
However, there are exceptions: onshore wind generation costs rose by 8 per cent, while large-scale solar photovoltaic (PV) costs decreased by the same margin.
Gas turbine technologies experienced a 14 per cent increase. Interestingly, nuclear small modular reactors (SMRs) were identified as the highest-cost technology.
The draft also reveals other trends: battery costs rose slightly by 2 per cent, offshore wind costs decreased by 9 per cent, and costs for technologies such as pumped hydro, wave and tidal energy increased, reflecting both new information and inflationary pressures.
The consultation period for the draft report is open until 9 February 2024, with the final GenCost 2023-24 report expected to be released in the second quarter of 2024.
The report is accessible here, and feedback can be submitted here.