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CSIRO/AEMO Draft Finds Renewables Plus Storage Cheapest Path for Australia’s Grid

The draft projects an 82% renewable grid in 2030 cutting wholesale costs to about $81–$91/MWh.

Overview

  • New whole‑system modeling identifies solar PV, onshore wind, storage and fast‑start gas or hydrogen as the lowest‑cost mix, with offshore wind, carbon capture and nuclear increasing average electricity costs.
  • Nuclear remains the most expensive option across scenarios, and small modular reactors carry the highest capital costs among technologies assessed.
  • Wholesale generation costs are estimated at $115–$124/MWh by 2050, or $135–$148/MWh including transmission, which is lower than today’s roughly $129/MWh benchmark.
  • CSIRO notes it is not economically efficient to remove all electricity‑sector emissions, with fossil gas favored over green hydrogen for backup and residual emissions offset elsewhere.
  • Cost trends show large battery prices falling another 15% after a prior 20% drop while coal and open‑cycle gas equipment costs have risen, reinforcing calls for faster investment and approvals to meet the 2030 goal.