GenCost is a leading annual economic report that estimates the cost of building new electricity generation, storage and hydrogen production in Australia to 2050. This report recognises that Australia’s future electricity system needs a mix of technologies to remain reliable, secure and flexible – with cost being just one part of the equation.

For the seventh year in a row, renewables remain the lowest-cost option for new low-emission electricity generation. Gas with carbon capture and storage (CCS) followed by and large-scale nuclear are the next lowest cost options, but as neither is currently used for electricity generation in Australia, both may face longer lead times and first-of-a-kind premiums. 

Key findings

• Large-scale solar photovoltaics (PV) remains the strongest performer, falling 8% for the second year in a row.
• Battery costs recorded the biggest annual reduction, falling 20%.
• Onshore wind costs continue to increase, but at a slower rate.
• Gas turbine costs increased the most.
• New data has become available on the cost of nuclear small modular reactors (SMRs) with the commencement of Canada's Darlington project.
• Analysis of nuclear projects, including potential cost advantages of a long operational life, plausible capacity factor ranges and likely development lead time.
• Rising construction costs in Australia and supply chain constraints for some technologies remain a challenge for reducing costs.