Wind is now cheaper than fossil fuels in producing electricity in Australia, the world’s biggest coal exporter, according to data compiled by Bloomberg.
Electricity can be supplied from a new wind farm in Australia at a cost of A$80 ($84) per megawatt hour, compared with A$143 a megawatt hour from a new coal-fired power plant or A$116 from a new station powered by natural gas when the cost of carbon emissions is included, according to a Bloomberg New Energy Finance report. Coal-fired power stations built in the 1970s and 1980s can still produce power at a lower cost than that of wind, the research shows.
Relying on fossil fuels to produce electricity is getting more expensive because of the government’s price on carbon emissions imposed last year, higher financing costs and rising natural gas prices, BNEF said. The cost of wind generation has fallen by 10 percent since 2011 on lower equipment expenses, while the cost of solar power has dropped by 29 percent.