Malcolm Turnbull says renewables plus storage are cheaper than coal and nuclear for new power generation

Posted on: Thu, 2019-09-12 - 19:42 By: admin

Mr Turnbull refers to "new coal". Leading experts consulted by Fact Check pointed out that new coal-fired power plants would most likely be required to accept a "risk premium" when obtaining finance, reflecting uncertainty over international and domestic climate and energy policy, future clean-up costs, and higher construction risks.

According to some estimates, interest rates faced by new coal projects as a consequence would be twice those applying to wind or solar projects. Factoring this in makes new coal an even less attractive proposition. The best available data suggests that under current conditions, nuclear energy would not be a cheaper source of electricity than renewables, as Mr Turnbull points out.

For me, although the reasoning behind the financing risk premiums and associated costs are an interesting perspective not often mentioned, the article gives a particularly useful explanation in layman's terms as to how the levelised cost of electricity (LCOE) is determined and why it is important when comparing different types of generation. The sectioned headed "Setting the parameters" covers this.

See https://www.abc.net.au/news/2019-09-12/is-renewable-power-cheaper-than-coal-nuclear-malcolm-turnbull/11495558

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#^Fact check: Are renewables plus storage cheaper than coal and nuclear for new power generation?

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Former prime minister Malcolm Turnbull says new generation from renewables plus storage is cheaper than new coal or nuclear generation. Is that correct? RMIT ABC Fact Check investigates.

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