A new report by the Australian government's science agency found that, to meet 2050 net-zero pollution goals, the country may have to add costly nuclear energy and offshore wind to its electricity mix, which mostly consists of solar and onshore wind. 

What's happening?

According to the Australian Financial Review, collaborative research by the Commonwealth Scientific and Industrial Research Organisation and the Australian Energy Market Operator found that if the country generated 82% of electricity from solar power and onshore wind, it would meet its 2030 clean energy goals while slashing wholesale electricity prices by one-third. 

However, some analysts argue that it may not be able to build sufficient renewable capacity to meet the target, and therefore, customers wouldn't see significant savings in electricity bills. 

But Paul Graham, CSIRO chief energy economist who led the GenCost research, delivered some good news. Given substantial uncertainties about the future costs of offshore wind, it may be an affordable energy source, alongside solar and onshore wind. Large-scale battery prices fell by 15% in 2025, with further drops expected, which should play a key role in boosting grid resilience. 

"It would be great if we could get costs even lower, but I suppose you can't have everything," Graham added.

"So we've got the abatement, and we can keep costs about where they are now, that's a good thing, with some relief in the short term to 2030."

Why are the findings important?

While the report is overall positive, particularly if Australia can achieve a largely renewable grid by 2030, the possibility that electricity prices may be higher than expected is discouraging. 

That's why using nuclear, offshore wind, and carbon capture to generate electricity is a last resort, and a combination of established technologies — solar, onshore wind, coal, gas, and hydropower — is expected to be the most economical way to power Australia. 

If the country meets its 2030 renewable energy goals, wholesale electricity costs are projected to be $91 per megawatt-hour. But by 2050, the report forecast that wholesale prices would rise to between $135 and $148 per megawatt-hour, compared to the current average cost of $129. 

Analysts found that allowing a small amount of dirty gas was more cost-effective than aiming for a completely pollution-free grid, as the Guardian reported. 

What's the most you'd pay per month to put solar panels on your roof if there was no down payment? $200 or more 💰 $100 💸 $30 💵 I'd only do it if someone else paid for it 😎 Click your choice to see results and speak your mind.

Relying more on clean energy sources such as nuclear and onshore wind would be better for the planet and people's health, but the report found that large-scale nuclear power is significantly more expensive than renewables in Australia, with costs potentially twice those of solar and wind, and requiring at least 15 years for deployment. However, onshore wind costs have stabilized, indicating potential for future growth. 

While nuclear has significant advantages, including the ability to produce low-carbon electricity 24/7 and a high energy density, its upfront costs, long lead times, and current legislation in Australia prohibiting nuclear power plant construction "limit its potential to play a serious role in reducing emissions within the required timeframe," noted the CSIRO. 

How can I lower electric bills in the short term?

As the Guardian noted, Australians experienced an average 40% increase in electricity prices last year. While its clean energy transition is underway, residents may consider investing in rooftop solar panels, enrolling in community solar, or leasing panels for immediate savings on electricity bills.

Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.