Australia’s Ultra Low Cost Solar Target

The recent release of the CSIRO GenCost report has reignited discussions on the expenses associated with various generation technologies, particularly focusing on the high costs of nuclear power. Critics, predominantly from the nuclear sector, have expressed discontent with the country’s primary scientific research agency highlighting the significant expenses linked to nuclear energy.

Within the energy industry, both locally and internationally, the exorbitant costs of nuclear power are well-known. However, this reality has faced strong opposition on social media, right-wing media platforms, and from the federal Opposition. The opposition continues to argue that renewable energy sources are the most costly and pose a risk of power outages, ultimately leading to economic downfall.

Potential for Ultra Low-Cost Solar

Darren Miller, the head of the Australian Renewable Energy Agency, has presented a compelling perspective by juxtaposing the CSIRO solar cost projections with Australia’s ambitious “ultra low-cost solar” objective championed by ARENA. Miller shared a graph on his LinkedIn profile illustrating this comparison.

The ultra low-cost solar target aims to achieve a significant shift from the current standards of 22 per cent solar module efficiency and installation costs exceeding $1 per Watt. The visionary “30-30-30” goal strives to attain 30 per cent solar module efficiency and reduce installation costs to 30 cents per watt by 2030. This transformation could potentially reduce solar expenses to below $20 per megawatt hour, a mere third of the projected costs for 2023.

Implications of Achieving Ultra Low-Cost Solar

If this target is met, it could propel Australia into a leading position as a renewable energy powerhouse. This achievement could facilitate direct exports through cables, as well as the production of hydrogen, green ammonia, and other sustainable industries like green iron and green steel. Moreover, it would revolutionise the economic dynamics of the Australian grid and benefit local consumers significantly.

The successful realisation of ultra low-cost solar would not only enhance the country’s energy landscape but also contribute to a more sustainable future for both the economy and the environment.