URGENT UPDATE: A stunning new report from AGL has revealed that renewable energy sources are projected to cost Australians TRIPLE the price of coal for electricity generation. This revelation comes as the debate intensifies over the future of energy in Australia.
In its 2025 annual report, AGL disclosed that generating electricity from coal costs approximately $15 per megawatt hour, while renewables, including storage, stand at around $47 per megawatt hour. This significant cost disparity raises serious questions about Australia’s energy policies and the sustainability of transitioning to renewable sources.
During the financial year, AGL produced over 26,000 gigawatt hours from coal, compared to just under 5,000 gigawatt hours from renewables. The company’s expenditures reflect this trend, with $392 million spent on coal generation and $233 million on renewables and storage.
Ben Fordham, a prominent radio host, emphasized the report’s implications, stating, “This is why our energy bills keep going up. We’re shutting down coal even though it’s three times cheaper than renewables.” Fordham noted that AGL plans to close its coal-fired power stations by 2025, despite coal making up 80 percent of its energy generation.
The report further highlights the challenges facing Australia’s energy market as it transitions toward renewables. For the first time, electricity from renewable sources has surpassed coal generation, with 9.24 terawatt hours generated in September, compared to 8.8 terawatt hours from coal, according to data from Ember. However, with rising costs, many experts question the viability of this transition.
AGL’s report indicates that while renewables are touted as the future, they may not be the immediate solution for rising energy bills. Fordham pointed out the stark contrast in costs between coal and gas, with gas prices reaching a staggering $115 per megawatt hour compared to coal’s $22 per megawatt hour.
In light of these findings, NSW Premier Chris Minns recently extended the life of the Eraring power station, originally scheduled for closure in 2025, to avoid potential blackouts. The decision underscores the pressing need for reliable energy sources as the state grapples with the implications of a rapid shift to renewable energy.
The Climate Council asserts that renewables, such as solar, are far more cost-effective than coal and gas, with wholesale prices for renewables averaging $74 per megawatt hour compared to $135 per megawatt hour for coal and gas. They argue that renewables are not only the cheapest option but also essential for a sustainable energy future.
As the energy landscape in Australia evolves, the urgency for a balanced approach is apparent. The implications of AGL’s findings could reshape the conversation around energy policies, costs, and the future of Australia’s power generation.
Stay tuned for further updates on this developing story as authorities and stakeholders respond to the urgent need for an effective energy strategy in Australia.
