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The economics of renewables are “getting worse, not better”, according to Origin Energy CEO Frank Calabria:
Calabria told the Australian Energy Council conference in Sydney last week that the economics of large-scale renewable developments had deteriorated sharply over the past four years, with the cost of building wind farms rising about 50% since 2020 as developers grapple with higher financing, labour, steel and construction costs.
“Higher costs of the transition ultimately land on customer bills or are absorbed by the taxpayer”, he said.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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