ATSE highlights an assortment of complementing sustainable technologies are likely required to reach net zero. Future GenCost reports need to take a technology-neutral approach to driving down emissions from energy generation and look to international examples to inform Australia’s costings and decision-making.
ATSE recommends using the Levelized Full System Costs of Electricity methodology for GenCost data analysis – a novel cost evaluation metric that compares the costs of serving the entire market using one source plus storage. Considering economies of scale and learning rates (the fractional reduction in cost for each doubling of cumulative production/capacity) within the GenCost report is also recommended by ATSE.
Consumers may find it challenging to access trustworthy information on sustainable energy technologies, to assist in making informed decisions. ATSE suggests that the GenCost report needs to compare incentives and input/output costs of sustainable technologies (e.g. solar photovoltaic and batteries) across states. Clear and accessible information on calculating capital payback times would assist potential customers. Greater information on ongoing charges when drawing from the grid during peak times (and whether to install battery storage, for example) would also better equip households with information to make cost-effective and sustainable decisions.
Recommendations from ATSE’s submission
Recommendation 1: Focus the GenCost report on energy technologies needed to reach net zero by 2035.
Recommendation 2: Clarify how international figures can be applied to Australia’s cost of electricity generation in the GenCost report, for a range of current and emerging technologies.
Recommendation 3: Adopt the novel Levelized Full System Costs of Electricity (LFSCOE) methodology for current and future GenCost reporting.
Recommendation 4: Consider the economy of scale and expand upon learning rates in the GenCost report.
Recommendation 5: Include comparison information on consumer-level technologies in the GenCost report to facilitate household-level reduction of greenhouse gas emissions.