Renewable energy now cheaper than new fossil fuels in Australia | Bloomberg New Energy Finance

See on Scoop.itGreen & Sustainable News

Sydney, 7 February 2013 – Unsubsidised renewable energy is now cheaper than electricity from new-build coal- and gas-fired power stations in Australia, according to new analysis from research firm Bloomberg New Energy Finance.

Duane Tilden‘s insight:

[…] research on Australia shows that since 2011, the cost of wind generation has fallen by 10% and the cost of solar photovoltaics by 29%. In contrast, the cost of energy from new fossil-fuelled plants is high and rising. New coal is made expensive by high financing costs. […] New gas-fired generation is expensive as the massive expansion of Australia’s liquefied natural gas (LNG) export market forces local prices upwards. […]

[…] Australia’s fleet of coal-fired power stations built by state governments in the 1970s and 1980s can still produce power at lower cost than renewables, because their original construction cost has now been depreciated.

“New wind is cheaper than building new coal and gas, but cannot compete with old assets that have already been paid off,” Bhavnagri said. “For that reason policy support is still needed to put megawatts in the ground today and build up the skills and experience to de-carbonise the energy system in the long-term.”

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