While retail electricity rates in Australia continue to rise, as state-based subsidies are wound back, wholesale electricity prices in Australia remain at levels that make if difficult for large-scale PV power plants to compete on price. The residential retail price is roughly AUD20 cents (15 euro cents) per kilowatt-hour in Australia, while on the wholesale market it is four cents Australian (3 euro cents).
Describing the situation as "challenging" for potential developers of large-scale PV projects, the reports authors added that the Federal Governments recently passed carbon tax will have a profound influence on the point at which PV power plants become competitive producers of electricity on the wholesale market.
The report found, using a model for a 50 percent debt-equity split, large-scale projects could compete on the wholesale market at some point between 2019 and 2027 with the carbon tax. Without it, projects will not become competitive until 2031.
The cost of financing was also found to be a major factor in PV power plant competitiveness in Australia. Low-cost finance, APVA found, could result in competitiveness as soon as 2013. As such, the report advocates government debt guarantees as an effective support model.
At present the Australian Federal Government is supporting large-scale projects through its AUD $750 million (571 million) Solar Flagships initiative, which will include a 150-megawatt PV plant in Moree, New South Wales.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.