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CSIRO is out with its new annual GenCost, and it has addressed the sceptics of previous reports who quite rightly accused it of rigging the results by excluding the costs of the transmission buildout, to boost the appeal of renewables.
The result is this:
Historically, GenCost modelling relied on the Levelised Cost of Electricity (LCOE) metric, which analyses the average cost of building and operating individual generation technologies over their lifetime. While LCOE is useful for comparing technologies like solar, wind, or gas, it doesn’t account for how these technologies interact within the electricity system.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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