The Smart Energy Council has welcomed the release of the CSIRO and Australian Energy Market Operator (AEMO) GenCost 2025–26 Final Report, which continues to provide Australia’s most comprehensive independent assessment of the cost of electricity generation, storage and hydrogen technologies.
Published annually since 2018, GenCost is widely regarded as the benchmark reference for policymakers, investors and industry as Australia plans the replacement of its ageing electricity generation fleet. The 2025–26 report introduces further improvements to its methodology, including enhanced system-level modelling and greater transparency through new open-source tools.
Consistent with previous editions, the report finds that renewable energy supported by storage remains the lowest-cost investment pathway for Australia’s future electricity system under a net zero emissions scenario. Solar PV and onshore wind are projected to provide the majority of Australia’s electricity by 2050, supported by batteries, hydro, transmission and flexible generation technologies.
Among this year’s key findings, GenCost reports continued reductions in battery storage costs, with large-scale batteries increasingly competing with traditional gas peaking plants. At the same time, rising global demand for gas turbines—driven largely by rapid data centre growth overseas—has increased the cost of new gas-fired generation.
The report also notes that while electricity generation costs are expected to remain below the peaks experienced during the global energy crisis, replacing Australia’s ageing coal-fired power stations will require significant investment regardless of the technology pathway chosen.
Exclusive member briefing now available
Given the significance of this year’s report, the Smart Energy Council has prepared a comprehensive members-only briefing analysing what the latest GenCost findings mean for Australia’s renewable energy industry.
The briefing explores the report’s implications for project economics, future electricity prices, battery deployment, firming technologies and investment trends, while unpacking the methodological changes introduced in this year’s analysis.
As an exclusive member benefit, the briefing provides additional context and insights designed to help businesses understand how the evolving cost outlook may influence future market opportunities and policy discussions.
Smart Energy Council members can access the full GenCost 2025–26 briefing through the Member Portal.
The full CSIRO GenCost 2025–26 Final Report is publicly available on the CSIRO website
