{"id":336,"date":"2025-08-06T07:54:45","date_gmt":"2025-08-06T07:54:45","guid":{"rendered":"https:\/\/aykasolar.com.au\/news\/?p=336"},"modified":"2025-08-13T09:41:05","modified_gmt":"2025-08-13T09:41:05","slug":"renewables-still-cheapest-in-new-power-build-says-final-2024-25-gencost-report","status":"publish","type":"post","link":"https:\/\/aykasolar.com.au\/news\/renewables-still-cheapest-in-new-power-build-says-final-2024-25-gencost-report\/","title":{"rendered":"Renewables Still Cheapest in New Power Build, Says Final 2024\u201325 GenCost Report"},"content":{"rendered":"
\"\"<\/figure>\n\n\n

<\/p>\n\n\n\n

The CSIRO and Australian Energy Market Operator (AEMO) have released the final 2024\u201325 GenCost Report, showing fresh cost estimates for new electricity generation technologies being built in Australia. The report confirms that renewables\u2014specifically wind and solar, backed by storage and transmission\u2014remain the most cost-effective options for new electricity generation.<\/p>\n\n\n\n

GenCost, Australia\u2019s leading source of generation cost data, plays a key role in supporting energy system modelling and investment planning. While wind and solar lead in cost, the report stresses the need for a mix of technologies to maintain reliability and flexibility across the national electricity market in the long term.<\/p>\n\n\n\n

Although large-scale nuclear and gas with carbon capture and storage (CCS) were included as the following least expensive possibilities, the paper points out that neither is currently used in Australia to generate power. As such, they may face extended lead times and \u201cfirst-of-a-kind\u201d cost premiums before deployment.<\/p>\n\n\n\n

Small modular nuclear reactors (SMRs) remain the most expensive new-build option, even with updated data from Canada\u2019s Darlington project\u2014one of the first commercial-scale benchmarks from a Western country. The costs reported fell within the previously projected GenCost range.<\/p>\n\n\n\n

CSIRO Director of Energy, Dr Dietmar Tourbier, emphasised GenCost\u2019s role as a trusted and independent benchmark for the sector.<\/p>\n\n\n\n

\u201cGenCost delivers transparent, independent cost estimates that feed directly into electricity system modelling and investment planning,\u201d Dr Tourbier said.<\/p>\n\n\n\n

\u201cBy drawing on expert input from across the electricity sector, GenCost reinforces CSIRO\u2019s role as a neutral source of scientific insight to help guide Australia\u2019s energy transition,\u201d he added.<\/p>\n\n\n\n

Lead author and CSIRO Chief Energy Economist, Paul Graham, said this year\u2019s consultation process attracted fewer stakeholder submissions than previous reports, though they represented a wider spread of views.<\/p>\n\n\n\n

\u201cMost input focused on technologies either in development or already under construction\u2014like pumped hydro, solar PV<\/a>, wind, gas, solar thermal and electrolysers,\u201d Mr Graham said.<\/p>\n\n\n\n

\u201cGenCost’s strength is in working together. We depend on the deep expertise of the electricity industry because no single organisation can track every technology in detail.\u201d<\/p>\n\n\n\n

This year\u2019s report sees an upward revision in cost forecasts for most technologies, despite falling prices for solar PV and batteries<\/a>. The adjustments were driven by several key factors:<\/p>\n\n\n\n