Solar power cheaper than fossil fuels in most capital cities: Climate Council
Updated
Solar energy is now cheaper in Australia than retail power prices in most capital cities after dropping 58 per cent in the past five years, the Climate Council says in a new report.
Key points:
- Industrial-scale solar power plants providing cheaper energy than new coal plants, Climate Council says
- Costs expected to drop by further 70 per cent by 2040
- In next two decades, solar power expected to account for a third of current energy usage in Australia
The cost is predicted to fall a further 40 per cent to 70 per cent by 2040, the report said, with the lower price expected to drive an uptake in usage.
Cost of new power generation
| Energy supply | Cost of energy (AUD/MWh) |
|---|---|
| Solar | $78-$140 |
| Wind | $61-$118 |
| Ultra supercritical coal (so-called "clean coal") | $134-$203 |
| Coal with carbon capture and storage | $352 |
Industrial-scale solar plants were also providing cheaper power than new coal plants, the council said.
Climate Council chief executive officer Amanda McKenzie said 20 solar power plants were slated to be built around Australia.
"In Australia, solar is now cheaper than new fossil fuels and nuclear power, and that's been a big shift in the last few years," she said.
"In the pipeline, we're seeing another 3,700 megawatts of solar energy coming online in the next few years, so that's roughly equivalent to powering 600,000 households."
The solar industry was surging worldwide, the report said, with countries including China, the US and Japan at the forefront of solar technology.
Solar power 'generated where it's used'
Australia is expected to reach about 20 gigawatts of solar generation in the next two decades — about a third of current total power generation.
The first national audit of batteries that store solar power showed almost 7,000 were installed in Australian homes last year, with the number expected to triple this year.
Climate councillor Andrew Stock said solar power was more secure from extreme weather events, because it was generated where it was used, adding about 30 per cent of homes in Queensland and South Australia had solar panels installed on their rooftops.
Solar installations in Australia
| State/Territory | Installations | Percentage dwellings | MW |
|---|---|---|---|
| Queensland | 485,794 | 30 | 1,602 |
| South Australia | 200,213 | 30 | 690 |
| Western Australia | 211,091 | 24 | 645 |
| Victoria | 294,815 | 15 | 968 |
| New South Wales | 343,930 | 15 | 1,314 |
| Australian Capital Territory | 17,185 | 14 | 77 |
| Tasmania | 27,836 | 13 | 98 |
| Northern Territory | 6,253 | 10 | 50 |
| 1,587,117 |
"The era of coal is over and global investment has moved firmly to renewable energy," he said.
"Solar power is cheaper, has no fuel costs, is non-polluting and it is clear that it will be a key of Australia's future."
The full report can be viewed on the Climate Council's website.
Topics: environment, electricity-energy-and-utilities, alternative-energy, nuclear-energy, solar-energy, science-and-technology, energy, coal, australia
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