According to an research by Bloomberg, in Australia Wind Energy is becoming cheaper than Coal and Gas.

Bloomberg New Energy Finance ( BNEF ) has conducted a study which certifies that the electrical power can be supplied from a new wind farm at a cost of AUD 80/MWh (U.S. $ 83), compared to AUD 143/MWh for a new coal plant or AU $ 116/MWh by a new gas plant load basis, including the cost of emissions under the scheme of the ex-Gillard government's carbon prime (in the period of the study).

Michael Liebreich, CEO of Bloomberg New Energy Finance, asserted that if wind power is now cheaper than coal and gas in a country with some of the world’s best fossil fuel resources, clean energy will be a game changer which promises to transform the economics policy.

In this regard, we see encouraging data that resulted from this study:

• Since 2011, the cost of wind has fallen by 10% and the cost of solar photovoltaics by 29%, but the cost of energy from new fossil-fueled plants is high and rising.

   

• By 2020, large-scale solar PV will also be cheaper than coal and gas.

   

• By 2030, renewable technologies such as biomass and solar thermal could also be cost-competitive.

   

This suggests that the Australian economy is going to be powered extensively by renewable energy, so the investment in new fossil-fuel power generation will be limited, unless there is a sharp, and sustained, fall in Asia-Pacific natural gas prices.

As Bhavnagri pointed out, the wind power plants are cheaper than building coal and gas, but they cannot compete with the old tasks that have already been Seattle and the cost of production has already been amortized.

In conclusion, it is still necessary political support to build the skills and experience to de-carbonize the energy system in the long term, but today the economy is absorbing for new construction of renewable energy sources and it is unlikely that coal fired power plants will be built again in Australia.

PVCompare Team
(source: Bloomberg)