Antinuclear

The BNEF research found that even without a carbon price, wind energy is already 14 per cent cheaper than a new baseload coal-fired power station and 18 per cent cheaper than a new gas one.

SMH reported that the gap widened even further when the carbon tax is added. Wind farms can now generate electricity at $80 per megawatt-hour, compared with $143 for a new coal power station and $116 for a new baseload gas power station.

BNEF said that in Western Australia large-scale photovoltaic (PV) power stations are already cheaper than new coal-fired generating capacity, coming in at $157 per MWh compared with $190.

“It’s very unlikely that new coal (power stations) would be built in Australia,” Kobad Bhavnagri, head of clean energy research for BNEF in Australia, said.

Carbon tax aside – which the coalition has promised to scrap if they’re elected this year – the research also found those looking to source funding for emission heavy coal developments would have trouble because of the reputational risks associated with the investment.

“Financing for coal would be made very expensive because of all the risks involved,” Bhavnagri said.

“A bank would be quite conscious of financing a highly polluting asset,” he said.

“That would likely make them susceptible to environmental activism.”…….

But BNEF did clarify that while the price of renewables is dropping, they still can’t compete with Australia’s existing coal-fired, government built power stations, and whose construction costs have already been depreciated.

“New wind is cheaper than building new coal and gas, but cannot compete with old assets that have already been paid off,” Bhavnagri said.

“For that reason policy support is still needed to put megawatts in the ground today and build up the skills and experience to de-carbonise the energy system in the long-term.”

Late last year the Climate Change Authority completed its review of the Renewable Energy Target scheme and recommended leaving the target for large-scale generators unchanged at 41,000 gigawatt hours of renewable energy per year by 2020.

The government has six months to respond. http://www.miningaustralia.com.au/news/cheaper-renewable-energy-will-give-coal-a-run-for