GenCost is a leading economic report by the CSIRO, Australia’s national science agency, in collaboration with the Australian Energy Market Operator (AEMO) on the cost of building future electricity generation, storage and hydrogen production in Australia.

The latest report introduces a range of changes in response to stakeholder feedback, most significantly, the inclusion of large-scale nuclear for the first time. This decision was prompted by increased stakeholder interest in nuclear following updated costings for small modular reactors (SMRs) in the 2023-24 consultation draft.

GenCost assessed submissions regarding the suitability of large-scale nuclear power generation in Australia’s electricity system and found that, while generation units of that scale are unprecedented in Australia, there are no known technical barriers.

It also determined that nuclear power was more expensive than renewables and would take at least 15 years to develop, including construction. This reflects the absence of a development pipeline, the additional legal, safety and security steps required, and weighing the evidence provided by stakeholders.

Wind power is recovering the slowest from global inflationary pressures and cost projections for both onshore and offshore wind have been revised upwards in the next decade.

Despite this, updated modelling found that renewables - including costs associated with additional storage and transmission - remain the lowest cost, new build technology.

This competitive position reflects the decade of cost reductions experienced by wind, solar photovoltaics (PV) and batteries prior to the pandemic, while costs of their more mature competitors have remained flat.