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Renewable energy nowcheaper than new fossilfuels in Australia
Australia wind beats newcoal in the world’s second-largest coal exporterSydney, 7 February 2013 –Unsubsidised renewableene...
This new ranking of Australia’s energyresources is the product of BNEF’sSydney analysis team, whichcomprehensively modelle...
“The perception that fossil fuelsare cheap and renewables areexpensive is now out of date”, saidMichael Liebreich, chief e...
Bloomberg New Energy Finance’s research onAustralia shows that since 2011, the cost of windgeneration has fallen by 10% an...
BNEF’s analysts conclude that by 2020,large-scale solar PV will also be cheaperthan coal and gas, when carbon pricesare fa...
“It is very unlikely that new coal-fired powerstations will be built in Australia. They are justtoo expensive now, compare...
Before that time, clean energy investment will bedriven up, and power sector emissions down,only with the support of Austr...
If you like this blog you might also like…Five reasons why use solar panels, Solar Panels (Community Updates on Facebook)S...
Renewable energy now cheaper than new fossil fuels in australia
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Renewable energy now cheaper than new fossil fuels in australia

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http://mysolarbliss.com.au/ Australia wind beats new coal in the world’s second-largest coal exporter./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.

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Renewable energy now cheaper than new fossil fuels in australia

  1. 1. Renewable energy nowcheaper than new fossilfuels in Australia
  2. 2. Australia wind beats newcoal in the world’s second-largest coal exporterSydney, 7 February 2013 –Unsubsidised renewableenergy is now cheaper thanelectricity from new-buildcoal- and gas-fired powerstations in Australia,according to new analysisfrom research firmBloomberg New EnergyFinance.
  3. 3. This new ranking of Australia’s energyresources is the product of BNEF’sSydney analysis team, whichcomprehensively modelled the cost ofgenerating electricity in Australia fromdifferent sources. The study shows thatelectricity can be supplied from a newwind farm at a cost of AUD 80/MWh(USD 83), compared to AUD 143/MWhfrom a new coal plant or AUD 116/MWhfrom a new baseload gas plant, includingthe cost of emissions under the Gillardgovernment’s carbon pricing scheme.However even without a carbon price(the most efficient way to reduceeconomy-wide emissions) wind energy is14% cheaper than new coal and 18%cheaper than new gas.
  4. 4. “The perception that fossil fuelsare cheap and renewables areexpensive is now out of date”, saidMichael Liebreich, chief executiveof Bloomberg New Energy Finance.“The fact that wind power is nowcheaper than coal and gas in acountry with some of the world’sbest fossil fuel resources showsthat clean energy is a gamechanger which promises to turnthe economics of power systemson its head,” he said.
  5. 5. Bloomberg New Energy Finance’s research onAustralia shows that since 2011, the cost of windgeneration has fallen by 10% and the cost of solarphotovoltaics by 29%. In contrast, the cost of energyfrom new fossil-fuelled plants is high and rising. Newcoal is made expensive by high financing costs. Thestudy surveyed Australia’s four largest banks andfound that lenders are unlikely to finance new coalwithout a substantial risk premium due to thereputational damage of emissions-intensiveinvestments – if they are to finance coal at all. Newgas-fired generation is expensive as the massiveexpansion of Australia’s liquefied natural gas (LNG)export market forces local prices upwards. Thecarbon price adds further costs to new coal- andgas-fired plant and is forecast to increasesubstantially over the lifetime of a new facility.
  6. 6. BNEF’s analysts conclude that by 2020,large-scale solar PV will also be cheaperthan coal and gas, when carbon pricesare factored in. By 2030, dispatchablerenewable generating technologies suchas biomass and solar thermal could alsobe cost-competitive.The results suggest that the Australianeconomy is likely to be poweredextensively by renewable energy infuture and that investment in new fossil-fuel power generation may be limited,unless there is a sharp, and sustained,fall in Asia-Pacific natural gas prices.
  7. 7. “It is very unlikely that new coal-fired powerstations will be built in Australia. They are justtoo expensive now, compared to renewables”,said Kobad Bhavnagri, head of clean energyresearch for Bloomberg New Energy Finance inAustralia. “Even baseload gas may struggle tocompete with renewables. Australia is unlikely torequire new baseload capacity until after 2020,and by this time wind and large-scale PV shouldbe significantly cheaper than burning expensive,export-priced gas. By 2020-30 we will be findingnew and innovative ways to deal with theintermittency of wind and solar, so it is quiteconceivable that we could leapfrog straight fromcoal to renewables to reduce emissions ascarbon prices rise.” he added.
  8. 8. Before that time, clean energy investment will bedriven up, and power sector emissions down,only with the support of Australia’s Large-scaleRenewable Energy Target. Despite compellingeconomics for new-build renewables today,Australia’s fleet of coal-fired power stations builtby state governments in the 1970s and 1980scan still produce power at lower cost thanrenewables, because their original constructioncost has now been depreciated.“New wind is cheaper than building new coaland gas, but cannot compete with old assetsthat have already been paid off,” Bhavnagri said.“For that reason policy support is still needed toput megawatts in the ground today and build upthe skills and experience to de-carbonise theenergy system in the long-term.”
  9. 9. If you like this blog you might also like…Five reasons why use solar panels, Solar Panels (Community Updates on Facebook)Solar for home (Happy Home Owner)

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