An independent expert report confirms that the Australian government’s renewable energy strategy is the most cost-effective pathway for providing Australian businesses and households with cheaper, cleaner energy.
The 2024-25 GenCost report, prepared by CSIRO and the Australian Energy Market Operator, evaluates the costs of building and operating various energy technologies, including coal, gas, solar, onshore and offshore wind, batteries, and nuclear power.
The report highlights renewable energy as the lowest-cost new-build technology choice, even after factoring in expenses related to firming and storage.
Notably, the cost of battery storage continues to decline, reinforcing the affordability of renewables for energy production.
Australia is already a global leader in solar energy, having the highest rooftop solar installation rate worldwide.
The government’s recently launched Cheaper Home Batteries program has already helped over 15,000 households add energy storage, enabling more Australians to harness renewable sources for their electricity needs.
“Reliable, abundant clean renewable energy – backed by gas – is paramount to Australian industry getting the affordable energy they need and deserve,” said Senator the Hon Tim Ayres, Minister for Industry and Innovation and Minister for Science.
“It is key to protecting traditional heavy manufacturing industries, as well as attracting new industries like AI and data centres.
“A flexible, reliable, cost-effective and expanded energy grid is critical to delivering a Future Made in Australia: our plan for good blue-collar and engineering jobs in our regions and outer suburbs.”
The data from Canada’s Darlington nuclear project—the first commercial-scale western cost benchmark — illustrates that small modular nuclear reactors remain Australia’s most expensive energy option.
The report is the first to quantify the premium for building large-scale nuclear in Australia, finding it to be 120 per cent higher than other options.
Despite this, the Coalition continues to support nuclear power, a position at odds with public backing for independent science and renewable energy solutions.
Minister for Climate Change and Energy The Hon Chris Bowen MP stated: “Australia has the best wind and sun to power our future and we’re harnessing it to secure the better, fairer energy system our nation deserves.
“The latest GenCost confirms what our energy experts have been saying for a long time: the most affordable path to deliver reliable energy in future is with new renewable generation and storage, firmed by gas and pumped hydro.
“This is a test for the new Coalition – will they listen to the experts and embrace the cheapest form of energy or continue their anti-renewable, expensive nuclear fixation?”
Despite some pressure on costs due to Australian construction expenses and global supply chain constraints, the Australian government’s approach centred on renewables remains the most affordable and efficient framework for building Australia’s energy grid.
The plan positions Australia at the forefront of the global clean energy transition while supporting economic growth and energy security for all Australians.
