Solar, onshore wind and gas backup is (still) the cheapest way to power Australia: new report

By Tony Wood, Program Director, Energy, Grattan Institute

What’s the cheapest way to power Australia? Every year, CSIRO researchers and modellers seek to answer this very large question in their GenCost report.

On one level, the answer in the draft 2025–26 report is unsurprising: solar and wind are the cheapest form of generation.

However, this report has gone further by modelling the cheapest cost across the grid, including different power generation options, energy storage, transmission lines and gas backup.…

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