Antinuclear

This has emerged from a study produced by Bloomberg New Energy Finance (BNEF), and shows that even without a carbon price, wind energy is 14 per cent cheaper than new coal and 18 per cent cheaper than new gas.

The BNEF study should certainly provoke a rethink by Australia’s conservative Liberal-National government as it sets about trying to repeal the country’s carbon price laws and possibly change the Renewable Energy Target (RET).

Prices for both renewable energy and fossil fuel-based energy have been changing rapidly in Australia

Electricity generated from new wind farms costs about $82 for each megawatt hour (MWh) produced, while electricity from new coal plants costs about $95/MWh and electricity from new natural gas plants costs about $100/MWh.These prices do not include Australia’s carbon price, which runs at about $23.5 a tonne of carbon emissions, which makes the real market price of coal power about $146/MWh and natural gas about $119/MWh.

“The perception that fossil fuels are cheap and renewables are expensive is now out of date”, said Michael Liebreich, chief executive of Bloomberg New Energy Finance.

“The fact that wind power is now cheaper than coal and gas in a country with some of the world’s best fossil fuel resources shows that clean energy is a game changer which promises to turn the economics of power systems on its head,” he said.

BNEF’s research on Australia shows that since 2011, the cost of wind generation has fallen by 10 per cent and the cost of solar photovoltaics by 29 per cent.

n contrast, the cost of energy from new fossil fuel plants is high and rising.

This is especially true for Australia’s natural gas prices, as large exports of liquefied natural gas (LNG) have driven up prices domestically.

BNEF says the relatively low price of renewable energy will likely effect Australian power plant and energy choices going forward.

Already, the owners of at least one aging coal power plant in northern Queensland are looking seriously at either switching to solar power or switching to a hybrid power source.Kobad Bhavnagri, head of clean energy research for BNEF in Australia, explained, “It is very unlikely that new coal-fired power stations will be built in Australia.

“They are just too expensive now, compared to renewables and even baseload gas may struggle to compete with renewable energy.”

BNEF’s analysts concluded that by 2020, large-scale solar PV will also be cheaper than coal and gas, when carbon prices are factored in.

By 2030, dispatchable renewable generating technologies such as biomass and solar thermal could also be cost-competitive.Kobad Bhavnagri, head of clean energy research for BNEF in Australia, explained, “It is very unlikely that new coal-fired power stations will be built in Australia.

“They are just too expensive now, compared to renewables and even baseload gas may struggle to compete with renewable energy.”

BNEF’s analysts concluded that by 2020, large-scale solar PV will also be cheaper than coal and gas, when carbon prices are factored in.

By 2030, dispatchable renewable generating technologies such as biomass and solar thermal could also be cost-competitive.http://econews.com.au/news-to-sustain-our-world/renewables-cheaper-than-fossil-fuels-in-australia/