The Commonwealth Scientific and Industrial Research Organisation (CSIRO) and the Australian Energy Market Operator (AEMO) on Monday published the annual GenCost report for 2021-22.
It found that wind and solar were the cheapest new-build electricity generation operation in that time period even when accounting for related costs such as storage and transmission.
According to the report, most technologies were cheaper in 2021-22 than the previous year.
However, it warned cost reductions will likely stall over the next 12 months as global supply chains recover from the coronavirus pandemic.
After the current inflationary cycle ends, it projected solar, wind and battery technologies would continue to get cheaper.
Larry Marshall, chief executive of the CSIRO, said the detailed analysis in the GenCost report would help government and industry navigate Australia's renewable energy transition.
"The latest report shows renewables are holding steady as the lowest cost source of new-build electricity," he said in a media release.
"With the world's largest penetration of rooftop solar, unique critical energy metals, a world class research sector and a highly skilled workforce, Australia can turn our challenges into the immense opportunity of being a global leader in renewable energy."
Data published by the federal Department of Climate Change and Energy in April revealed that fossil fuel sources accounted for 71 percent of Australia's total electricity generation in 2021, down from 76 percent in 2020.
Coal accounted for the majority of electricity generation, at 51 percent of total generation in 2021.
The largest source of renewable generation was solar (12 percent of total generation) followed by wind (10 percent) and hydro (six percent).
Latest comments