According to analysis from Bloomberg New Energy Finance, cheaper solar and wind power generation has resulted in the end of cheap coal energy generation in Australia.
This has happened much sooner than expected due to current economic conditions, as well as rising costs of coal and cheaper renewable energy.
This news is fantastic for the renewable energy market in Australia. Earlier this year, a study from the CSIRO found that renewable energy had become the cheapest source of new-build energy.
The reduction in carbon emissions from increasing renewable energy investment would contribute monumentally to the global effort in curtailing the impacts of climate change.
This news is reflective of the country’s transition away from high emission energy sources and toward renewable energy solutions. The closure of the Hazelwood coal-fired power station in Victoria in 2017 combined with the impending closure of the NSW based Liddell coal-fired power station, paints a promising picture for the future of Australia’s energy landscape.
In fact, since the closure of the Hazelwood power station in 2017 renewable energy hasn’t taken a backward step. It took just two summers for additional renewable energy capacity to replace the electricity output generated by the coal fired power station.
Additionally, the analysis by Bloomberg New Energy Finance also singles out the rising cost of generating power from black coal as the biggest driver of rising wholesale electricity costs.
Furthermore, in its March Quarterly Report, the Australian Energy Market Operator noted that high coal and gas prices were some of the main drivers to the rising wholesale electricity prices. The other factors influencing electricity prices were the hot and dry conditions, which restricted hydro output and increased electricity demand.
Persistently high energy prices across the nation have been one of the most polarising points of discussion for both policy makers and the Australian public in the recent election.
With the news that solar and wind energy options are now cheaper than coal, now is the right time to invest in commercial solar power for your business. Visit our financing options page for more information, or fill out a free no obligation consultation form below.