GenCost is an annual economic report that estimates the cost of building new electricity generation, storage and hydrogen production in Australia to 2050. It provides capital costs for each technology; as well as a levelised cost of electricity to compare the different technologies. The report finds that renewable energy supported by storage is helping to protect Australia against global energy shocks and continues to provide the lowest cost pathway for Australia’s electricity system to achieve net zero emissions.

Key findings

• Technology costs: Battery technologies continue to deliver cost reductions while rising demand for gas turbines to power US data centres is increasing costs for gas-based technologies.
• Short-term costs: Growing capacity of lower cost batteries capacity is beginning to reshape electricity markets, competing with traditional gas peaking generation and contributing to lower evening peak prices.
• Lowest-cost pathway: Renewables supported by storage remain the lowest-cost generation investments for Australia's future electricity system to achieve net zero, with solar PV and onshore wind projected to supply 93% of electricity by 2050.
• Long-term costs: By 2050, all new electricity generation technologies are projected to cost more than $100/MWh as ageing assets are replaced across the system.