Unsubsidized wind power is now cheaper than electricity produced from new coal- and natural gas-fired power stations in Australia, according to an analysis by Bloomberg New Energy Finance.
The study said that electricity can be supplied from a new wind farm at a cost of 80 Australian dollars per megawatt hour, compared to 143 Australian dollars from a new coal plant and 116 Australian dollars from a new natural gas plant. Even without a recently imposed carbon price, wind energy is 14 percent cheaper than new coal power and 18 percent cheaper than new natural gas, the study said.
The analysis said that Australia’s largest banks are unlikely to finance new coal plants because of concern over emissions-intensive investments and that natural gas has become expensive as Australia exports more liquid natural gas.
By 2020, the report said, large-scale solar arrays will also be cheaper than coal or gas when carbon taxes are figured in. “The perception that fossil fuels are cheap and renewables are expensive is now out of date,” said Michael Liebreich, chief executive of Bloomberg New Energy Finance.
Article appearing courtesy Yale Environment 360.