GenCost: cost of building Australia’s future electricity needs
GenCost is a leading annual economic report that estimates the cost of building new electricity generation, storage, and hydrogen production in Australia to 2050.
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GenCost 2024-25 Final Report released
The latest GenCost 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 per cent for the second year in a row.
Battery costs recorded the biggest annual reduction, falling 20 per cent.
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.
Consultation on the draft 2024-25 Report commenced 11 December, 2024.
Consultation ended 11 February, 2025.
The GenCost Report recognises and considers constructive feedback received during the consultation period. While the number of submissions remained high, the volume was lower than the previous year and covered a broader range of technologies.
AEMO's Integrated Systems Plan
GenCost is an important input into AEMO's Integrated Systems Plan (ISP).
Updated every two years, the ISP outlines the lowest-cost path to reliable, secure and affordable electricity, while supporting national emission targets and planning for the transition from ageing coal-fired power.
The most recent ISP was published by AEMO on 26 June, 2024.
Consultation on AEMO's Draft 2025 Inputs Assumptions and Scenarios, which is used in 2025-26 electricity forecasting and planning activities – including AEMO's 2026 ISP, is now closed. To learn more visit AEMO | Draft 2025 Inputs Assumptions and Scenarios Consultation
GenCost is a leading economic report for business leaders and decision-makers planning reliable and affordable energy solutions to achieve net zero emissions by 2050.
Published annually in collaboration with the Australian Energy Market Operator (AEMO), GenCost offers accurate, policy and technology-neutral cost estimates for new electricity generation, storage, and hydrogen technologies, through to 2050.
GenCost is highly collaborative and transparent, leveraging the expertise of energy industry stakeholders and involving extensive consultation to ensure accuracy prior to publication.
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GenCost is an annual collaboration between CSIRO, Australia’s national science agency, and the Australian Energy Market Operator (AEMO) to update the costs of new-build electricity generation, storage and hydrogen production out to 2050.
The data used in GenCost is based on the best global information and applied to local conditions – which allow a meaningful comparison of future energy costs generated by various technologies in the Australian context. This is important because the electricity generation system and the cycles of demand in each country are different. We publicly provide the data and formulae needed for others who want to test their own assumptions.
The latest GenCost report found that while inflationary pressures on freight and raw materials are easing, their impacts on specific technologies remain mixed.
Solar PV and batteries are recovering the fastest from the recent global inflationary cycle, with solar PV capital costs dropping 8 per cent for the second year and battery costs experiencing a 20 per cent cost reduction.
Onshore wind costs have increased by 6 per cent, down from an 8 per cent rise last year, reflecting ongoing but moderated equipment and installation expenses.
Nuclear updates
The latest report expands on our previous analysis of nuclear technologies, with updated findings on cost, capacity factors and deployment timelines.
What we found:
Small modular reactors (SMRs) remain the highest cost option, even with new data from Canada’s Darlington project - the first commercial-scale benchmark from a western country, which falls within GenCost’s projected range.
Despite a long lifespan, nuclear offers no unique cost advantages over shorter-lived technologies. Faster, cheaper-to-rebuild options offer similar savings.
High reinvestment costs and long deployment delays push nuclear cost benefits decades into the future, making it less competitive compared to quicker alternatives.
Both global and Australian evidence for nuclear capacity factors points to a wide range being plausible.
Nuclear construction times have increased globally, averaging 8+ years.
In full democracies, construction is taking at least 10 years.
These timelines do not account for planning, permitting and financing stages, which extend total lead time even further.
Our in-depth explainers take a closer look at Australia’s evolving electricity sector. What are the challenges and opportunities that lie ahead in Australia's energy transition?
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