The Clean Energy Council has welcomed the release of the 2025–26 GenCost report, describing it as the most comprehensive electricity cost modelling undertaken to date and a confirmation that renewables backed by storage and flexible firming, including solar power and onshore wind, remain the lowest-cost pathway for replacing Australia’s coal fleet.
The latest GenCost analysis from the CSIRO finds the average cost of electricity consistent with achieving around 82 per cent renewable generation by 2030 is approximately $91 per megawatt-hour (MWh) when new transmission is included, or about $81 per MWh for wholesale generation costs alone.
Jackie Trad, Chief Executive Officer at Clean Energy Council, said the figures demonstrate that Australia can retire coal-fired power stations while maintaining affordability and reliability for households and businesses.
“The GenCost report’s assessment of electricity costs at a whole-of-system level, rather than comparing individual technologies in isolation, finds renewables-led systems consistently outperform alternatives on cost,” she said.
“The report confirms that building a new coal-fired power station would deliver electricity for at least double the price of solar and wind. This is once again confirmation that the lowest-cost electricity system for Australia is built on renewable energy backed by storage and firming.”
“This is about replacing old coal plants with the cheapest, most reliable combination of technologies available.”
The modelling also indicates that electricity costs in 2050 under the least-cost pathway remain broadly in line with recent historical prices, even as demand continues to grow and coal generation exits the system. According to the report, flexibility from batteries, storage and firming technologies plays a central role in maintaining system reliability while keeping overall costs down.
Importantly, the GenCost analysis shows that introducing higher-cost technologies such as nuclear power or carbon capture and storage increases average electricity costs compared with a renewables-first system supported by firming.
“Time and time again research shows that if Australia wants affordable power as coal retires, the answer is to build more renewables, invest in storage and firming, and keep the system flexible,” Trad said.
“Delaying the transition or forcing in higher-cost technologies will only push bills up.”
Indicative levelised generation costs in the 2025–26 GenCost consultation draft reinforce this conclusion.
Solar photovoltaic is estimated at $52–$88 per MWh, while onshore wind ranges from $78–$129 per MWh. By comparison, gas-fired generation is costed at $135–$203 per MWh, black coal at $121–$195 per MWh, black coal with carbon capture and storage at $224–$354 per MWh, and large-scale nuclear at $200–$328 per MWh.
