The Hon Chris Bowen MP, Minister for Climate Change and Energy
Senator the Hon Tim Ayres, Minister for Industry and Innovation, Minister for Science
The Albanese Government is backing the cheapest and cleanest electricity for Australia, with the latest GenCost report confirming that firmed renewables are the lowest-cost option for electricity generation.
The report finds a combination of solar PV, wind, storage and either gas or hydrogen is the least cost technology mix in all cases examined.
The Albanese Government's plan is working. CSIRO's modelling show that in 2030 and 2050 solar and wind outperform alternatives like coal and nuclear as the cheapest form of energy.
Batteries - supported by our programs like Cheaper Home Batteries - are also getting cheaper, including a 15% reduction in capital costs for large-scale batteries.
Black coal-fired power is significantly more expensive, up 13%. While the report recognises a small amount of gas is required to firm renewable energy, the price of gas turbines has increased 32%.
Renewables backed by storage remain the lowest cost way to power Australia. GenCost confirms that recent price increases are not because of renewables, stating: "Price increases in recent years are a combination of lack of supply and fuel price volatility".
Australia needs clear policy and stable investment to deliver affordable, reliable and cleaner energy-which is being delivered by our reliable renewables plan. Other approaches undermine investor confidence while pursuing the most expensive path for energy generation, driving away investment in our country and pushing up prices for Australian consumers.
The report also notes that for coal, gas or nuclear technologies to reach the low end of their cost range they would need to operate almost all the time, at an 89 per cent capacity factor, when Australia's current coal baseload has averaged around 60 per cent. As GenCost states: "Higher penetration of renewables, which have a zero fuel cost, could make it difficult for new baseload plant to achieve high capacity factors depending on the scale of demand overall."
Australian households, businesses and industry deserve faster access to abundant low-cost reliable renewable energy. That's how we secure cheaper power and a cleaner future while driving economic growth and energy security.
The GenCost report provides Australia's most comprehensive benchmark on electricity generation costs, updated annually to reflect global trends and stakeholder input. This year's update introduces a new System Levelised Cost of Electricity (SLCOE) methodology, improving transparency and accessibility for industry and policymakers.
For more details, access the full GenCost 2025-26 consultation draft report here.
Quote Attributed to Chris Bowen MP, Minister for Climate Change & Energy:
"GenCost is clear; renewables remain the cheapest new electricity, and firming them with battery storage, transmission, hydro and a small amount of gas peaking is the best way to keep the lights on and put downward pressure on bills.
"Sadly, we are playing catch up after a decade of delay. The failure to build new generation energy supply has left Australians volatile to fossil fuel prices.
"GenCost also confirms ageing coal and expensive nuclear would mean higher costs, higher bills, and decades waiting for a plan that does not stack up."
Quote Attributed to Senator Tim Ayres, Minister for Industry, Innovation & Minister for Science:
"Renewables are not just the cleanest energy option, they're the cheapest.
"This independent report reinforces the importance of continued investment in wind, solar, and storage to deliver affordable, reliable energy for Australian businesses, homes and industry.
"We need to crack on with the job at hand - building out more renewable energy more quickly to replace retiring coal-fired power generation. The economics are clear, and Australians expect it of us."
