The Australian government appears to have made a remarkable concession following the release of the 100% renewables report by the country’s energy market operator – a renewables future will be no more costly than a largely fossil fuel alternative.
This should not be a surprise to anyone who has properly considered the costs of new generation – as ACT minister Simon Corbell has – and their likely progress in coming years. Wind, and then solar, clearly offer the cheapest options.
New coal and gas plants will be priced out of the market, an important consideration when taking into account that most current generation needs to be replaced in coming decades. (Some pro-nuclear web-sites and commentators like to say that nuclear energy will be within the same cost bracket, but that is only if the cost of capital is ignored.)