Cheap renewables will force fossil fuel out 24/02/2021|4min
The Institute of Energy Economics and Financial Analysis’ Lead Analyst for Australian Electricity Johanna Bowyer says fossil fuel plants will close quicker than expected due to cheap renewable energy entering the grid.
“Wind and solar have a much lower operational cost than coal and gas so what the increasing amount of new renewables will do is, it will do two things, one it reduces prices overall in the national electricity market and two it would result in the reduction of coal and gas plants,” she told Sky News.
Ms Bowyer said because renewables can enter the market at a lower price it will make the coal and gas plants too expensive to run which will lead to premature closing of coal plants.