House Tablet

Find The Best Solar Deals In Australia

  • 3 Free, No Obligation, Solar Quotes
  • From Fully Qualified Installers
  • With 1000’s of Customer Reviews
  • Competing for Your Business
Finn Peacock Caricature

Ready for some quotes? Enter your postcode now

Renewables now cheaper than fossil fuels, says BNEF

8th Feb 2013

New analysis by Bloomberg New Energy Finance (BNEF) has shown that fossil fuels really are the dinosaur of the energy sector.

BNEF researchers have shown that electricity generated from new renewable energy sources is actually cheaper than that generated from new fossil fuel sources like coal and gas.

"The perception that fossil fuels are cheap and renewables are expensive is now out of date," said chief executive of BNEF Michael Liebreich in a statement issued February 7.

He said the fact that renewables were now more cost-effective than coal and gas in a country that boasted such impressive fossil fuel resources was "a game changer".

BNEF's study showed that electricity supplied from a new coal or baseload gas plant would cost $143 per MWh and $116 per MWh respectively. By contrast, electricity generated at a new wind power plant would cost only $80 per MWh.

And this was even the case when the carbon price was taken out of the equation. In that scenario, wind energy came out 14 per cent cheaper than coal and 18 per cent more affordable than gas.

By 2020, the analysts predicted that large-scale solar PV would also become cheaper than coal and gas, with carbon pricing factored in.

BNEF expects that with the cost of solar PV falling by 29 per cent since 2011 - and the cost of wind power by 11 per cent - that it is "very unlikely" that new coal-fired power stations will be built in Australia.

"They are just too expensive now, compared to renewables," said head of clean energy research for BNEF Australia Kobad Bhavnagri.

"By 2020-30 we will be finding new and innovative ways to deal with the intermittency of wind and solar, so it is quite conceivable that we could leapfrog straight from coal to renewables to reduce emissions as carbon prices rise."

Posted by Mike Peacock

Solar Power News Categories

Government Rebate & Regulations
Solar Power & Technology

More Solar Power & Technology

Australia to be a part of huge Asian renewable energy growth
SunPower steps up to make solar more affordable
Canberra makes strides toward carbon neutrality
GTM puts solar's massive growth in perspective
Examining Australia's falling solar PV rooftop prices
Australia's shift toward renewable energy picks up the pace
Australia shines at solar decathlon
University of Queensland tapped as lead researcher on massive solar project
100 per cent renewable energy is possible in 10 years, environmental group says
Climate Commission releases report on solar progress
Aussie government actually shows spine for solar power
Be gone, skeptics: One million solar installations and counting
Australia embarks on its greatest solar journey ever
Australia looks to solar thermal for commercial success
Solar power helps King Island reach 100% sustainability
Australians 'heavy supporters of solar power'
Mildura solar plant officially unveiled
Solar power trumps other renewables in Australian minds
Sunshine Coast solar farm "fantastic initiative"
Sunshine Coast cashes in on namesake with solar plans
Energy storage 'could maximise solar power utility'
Solar powered family car - a world first?
Code of conduct for solar installers in the works
'Stop punishing households' for solar PV
Australian solar companies 'adjusting well'
Australian mining 'next solar frontier'
"Rooftop revolution" underway across Australia
Global PV market emerging from sluggish period
Royalla solar farm receives final approval
Leadership challenge a "debacle" for Australian solar power
Solar power giving global renewables a helping hand
Australia's largest CPV solar power plant up and running
Renewable energy misinformation "staggering"
CEC: Don't underestimate consumer desire for solar
Setting energy efficient examples on TV
Solar PV brightening up household bills
World's largest solar powered boat on the move
Climate change is heating up
The global solar power shift
New solar tech win for NSW
Industry orgs praise City of Sydney solar efforts
Clean Energy Council supports Regional Renewables scheme
Asian nations emerging as PV leaders
Solar PV demand continues to grow
Regional areas of Australia to receive more renewables
Australia's significant renewable energy growth
Solar panel reprieve for Queensland
New funding for solar research
Find love with sustainable speed dating
New Victorian solar power deal