Are electricity prices likely to fall because of renewables?

The latest CSIRO electricity generation cost report for 2025-2026 shows that solar and onshore wind power backed by storage is the least-cost new-build electricity generation technology mix. This is becoming more so, as the CSIRO analysis indicates the cost of large-scale battery storage has declined by 20 per cent and 15 per cent respectively over the past two years.

The reason is very simple. A solar panel converts sunlight directly into electricity cheaper than by any other means. Wind energy is low cost because it doesn’t need to pay any fuel costs.

The International Solar Energy Society has monitored Australian wholesale electricity prices since 2016 and concluded that they had remained stable for the past nine years.

Contrast this with the claims made by Federal Member for Nicholls Sam Birrell (Country News, December 16) that “energy prices are unlikely to fall”. It’s a shame that the LNP continue to claim that burning stuff to generate electricity and sustain industry to keep it competitive is the only viable option.

It particularly falls flat with the claim that nuclear power needs to be part of Australia’s energy future. Of all electricity generation methods, nuclear power is the most expensive and slowest to build. It also depends upon large amounts of water for cooling, just as coal power stations do. Solar, wind and battery systems can be up and running within a few years (and don’t require any water). How long would we have to wait for nuclear power to be part of Australia’s energy mix?

And then there is the overblown matter of ‘valuable farmland’ being destroyed by electricity supply developments. Where in Australia does an existing transmission line prevent agriculture from occurring in the easement? Where has a solar farm or wind farm been built on anyone’s farmland without full agreement of the land-holder? Where has it prevented similar agriculture practice to continue after the development? How much lost food production is actually caused by renewable energy developments?

Where have regional communities hosting renewable energy developments been economically disadvantaged by the developments? Where has renewable energy development increased power prices or reduced reliability? Where has remnant vegetation been destroyed by renewable energy developments?

Electricity is as vital an input to the workings of our modern economy as food production is. Small parcels of renewable energy developments are not a threat to food supplies nor a burden on regional communities.

If only members of the LNP could see the opportunity the energy transition presents, or perhaps they have too much coal dust in their eyes?

Bruce Gill, Tatura

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Wednesday, 18th March 2026

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