From a report by RenewEconomy.
The reverse auction process successfully delivered prices that were significantly lower than those previously run by the ACT government and the lowest publicly disclosed prices so far in Australia.
Neoen was granted a 14-year off-take agreement at $44.97 per MWh, and because it is a fixed price over the term of the contract, translates into a price of around $35/MWh today. GPG secured a 10-year off-take agreement at $54.48 per MWh. As per prior auctions, the contracts are likely to operate as a contract-for-difference relative to the NEM spot price.
Other wind contracts are believed to be in the ballpark of the two bids, but retailers and most governments do not reveal their prices. (Full credit to the ACT for doing so). To put the Neoen price into context, it is equivalent to around $35/MWh at today’s prices, or one half of the average price on the NSW wholesale market in the last year.
Note that these costings include 60 MW of battery storage, in addition to the wind farms.
In 2017, wind (without storage) cost $65/MWh, solar $70/MWh. That's an annual rate of decline of 15%. It must be obvious to anyone who knows these data that coal simply can't compete. The fuel-only cost of coal power is $56/MWh, and the cost of new-build coal power is $110-$120/MWh.
Why do people still support coal? Ignorance? Stupidity? Or because they're pocketing fat cheques from fossil-fuel interests?
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| Canberra, Parliament house |
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