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The future of coal and renewable power generation in Australia: A review of market trends

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  • Webb, Jeremy
  • de Silva, H. Nadeeka
  • Wilson, Clevo

Abstract

Recent estimates of the levelized cost of energy (LCOE) indicate a watershed moment where market forces have become the foremost driver in the replacement of coal by renewable sources. Current studies indicate an energy market is emerging in which not only new renewable plants are more cost effective than new coal fired power plants (CFPPs), but also the former is becoming more cost effective than existing CFPPS on a levelized cost of energy (LCOE) basis. However, an accelerated retirement of existing CFPPs depends both on the price received by power plants on a time weighted basis and on the total cost of energy which, in addition to the LCOE, takes into account costs of distribution and storage needed to overcome intermittent supply.

Suggested Citation

  • Webb, Jeremy & de Silva, H. Nadeeka & Wilson, Clevo, 2020. "The future of coal and renewable power generation in Australia: A review of market trends," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 363-378.
    • Handle: RePEc:eee:ecanpo:v:68:y:2020:i:c:p:363-378
    DOI: 10.1016/j.eap.2020.10.003
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    Cited by:

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    3. Mahinda Vilathgamuwa & Yateendra Mishra & Tan Yigitcanlar & Ashish Bhaskar & Clevo Wilson, 2022. "Mobile-Energy-as-a-Service (MEaaS): Sustainable Electromobility via Integrated Energy–Transport–Urban Infrastructure," Sustainability, MDPI, vol. 14(5), pages 1-16, February.
    4. Christian Hauenstein & Franziska Holz & Lennart Rathje & Thomas Mitterecker, 2022. "Stranded Assets in the Coal Export Industry? The Case of the Australian Galilee Basin," Discussion Papers of DIW Berlin 2003, DIW Berlin, German Institute for Economic Research.
    5. Tao, Chang-Qi & Yi, Meng-Ying & Wang, Chang-Song, 2023. "Coupling coordination analysis and Spatiotemporal heterogeneity between data elements and green development in China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1-15.
    6. Jun Dong & Dongran Liu & Xihao Dou & Bo Li & Shiyao Lv & Yuzheng Jiang & Tongtao Ma, 2021. "Key Issues and Technical Applications in the Study of Power Markets as the System Adapts to the New Power System in China," Sustainability, MDPI, vol. 13(23), pages 1-29, December.
    7. Zhu, Qing & Lu, Kai & Liu, Shan & Ruan, Yinglin & Wang, Lin & Yang, Sung-Byung, 2022. "Can low-carbon value bring high returns? Novel quantitative trading from portfolio-of-investment targets in a new-energy market," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 755-769.
    8. Veselov, Fedor & Pankrushina, Tatiana & Khorshev, Andrey, 2021. "Comparative economic analysis of technological priorities for low-carbon transformation of electric power industry in Russia and the EU," Energy Policy, Elsevier, vol. 156(C).
    9. Bo Shang, 2024. "Cooperation and Profit Allocation Mechanism of Traditional and New Energy Complementary Power Generation: A Framework for Renewable Portfolio Standards," Sustainability, MDPI, vol. 16(20), pages 1-27, October.
    10. Kenta Tanaka & Clevo Wilson & Shunsuke Managi, 2022. "Impact of feed-in tariffs on electricity consumption," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(1), pages 49-72, January.

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