CSIRO’s GenCost 2024–25 report confirms renewables, with storage and transmission, are the cheapest new-build option
Capital costs for large-scale solar fell 8% YoY; large battery costs dropped sharply by 20%
Rooftop solar PV is now cheaper than projected in GenCost's forecast last year
Another Productivity Commission draft urges enduring clean energy market incentives, faster approvals, and streamlined investments
The Commonwealth Scientific and Industrial Research Organisation (CSIRO) has released its latest GenCost 2024–25 Final Report, reaffirming that renewables remain the lowest-cost new-build electricity generation technology in Australia – read wind and solar backed by storage and transmission.
In its GenCost 2024-25 Final Report prepared in collaboration with the Australian Energy Market Operator (AEMO), CSIRO says that the capital costs of large-scale solar dropped by 8% year-over-year (YoY) for the 2nd year in a row, due to economies of scale and continued innovation. Large-scale battery costs improved the most during the reporting year, falling by 20%.
For rooftop solar PV systems, the report claims the costs are lower than projected for 2024 in the 2023-24 GenCost report.
“The LCOE cost range for variable renewables (solar PV and wind) with integration costs is the lowest of all new-build technologies in 2030 and at a similar range with black coal in 2024,” reads the report. It adds that while renewables with storage and transmission are the cheapest, a technology mix is needed for long-term reliability.
The complete report is available on CSIRO’s website for free download.
"The truth remains that renewables remain the lowest cost form of energy, even when taking into account the cost of firming these generation assets, including the costs of storage, transmission, and system security," said Anna Freeman, Clean Energy Council General Manager—Advocacy & Investment, on CSIRO’s report.
In a separate development, the Australian Government’s Productivity Commission, tasked with identifying key reforms and developing actionable recommendations to accelerate the nation’s transition to clean energy and net zero, has released its interim report. The draft recommendations are now open for public consultation.
Its suggestions are categorized into 3 main sub-categories, spanning cutting emissions costs, fast-tracking energy infrastructure approvals, and encouraging private investment in climate adaptation.
The draft titled Investing in cheaper, cleaner energy and the net zero transformation does not offer any specific targets or cost estimates, but wants the government to reduce emissions from GHG emissions with careful policy designs and consistent and comprehensive incentives.
It recommends broad-based market settings in the electricity sector to reduce emissions after 2030. Nationally consistent incentives must be in place for the lowest-cost clean energy, irrespective of generation technology or jurisdiction.
“Governments should prioritise introducing enduring, broad-based market settings in the electricity sector beyond 2030. This would drive ongoing decarbonisation in the sector and support it across the economy as other sectors electrify. Clear and predictable market incentives will build certainty and investor confidence and should not be based on continued fiscal support over time,” reads the report.
Faster approvals for clean energy infrastructure are crucial to this end. For this, it suggests introducing national environmental standards, facilitating regional planning within renewable energy zones (REZ), with stricter statutory deadlines to assess projects in go-zones.
While the Department of Climate Change, Energy, the Environment and Water (DCCEEW) should establish a strike team to prioritize renewable energy projects, an independent Clean Energy Coordinator-General should also be established to track the progress of all approvals needed to start construction and resolve delays.
The draft report is open for public consultation till September 15, 2025, on the commission’s website.