Grid And Storage

GenCost 2025-26: Renewable energy and energy storage become a stable anchor amid global uncertainty

Australia's national science agency CSIRO and the Australian Energy Market Operator (AEMO) jointly released the final GenCost 2025–26 report. The report shows that battery technology costs continue to decline and installed capacity is expanding rapidly, while gas-fired generation technology costs are rising due to increased global demand for gas turbines, especially from U.S. data centers. In 2025, the average generation price in the National Electricity Market (NEM) was about 104 $/MWh, below the 2022 peak of 189 $/MWh; futures prices indicate it may fall further to 80–90 $/MWh by 2030. Under the net zero scenario, solar PV and onshore wind are expected to supply 93% of Australia's electricity by 2050, with energy storage, hydropower, transmission, and flexible sources such as gas and hydrogen playing supporting roles; gas will still contribute about 3%–7% of generation by 2050. The report also notes that by 2050, all new-build generation technologies are expected to cost more than 100 $/MWh, and even if new-build black coal is cost-competitive, it would require higher carbon abatement costs in other parts of the system.