Australia can reach renewable energy tipping point by 2020: EY
The cost of renewable energy may fall below coal and natural gas in Australia by 2020, a year earlier than in many other markets, because of the high price of baseload power in the country, according to EY. "If gas in Australia was near its historical cost levels or near that of the USA – of $3 to $4 per gigajoule – then gas would still be competitive for a few years yet, but that is not the case with gas at $10/GJ", said Grattan Institute energy director Tony Wood.
Australia can reach a renewable energy tipping point in 2020, with renewable generation costs to be less than fossil fuels, EY power leaders say.

Australia may be one of the first nations to reach this stable grid parity point, EY Global Advisory power and utility leader Serge Colle told Fairfax Media.

"As early as 2021, [globally] we reach what we call grid parity; with Australia, the expectation is that this will come one year earlier, as early as 2020," Mr Colle said.

Grid parity is when renewable or alternative sources can produce energy at a levelised cost of electricity (LCOE) equal to or less than buying energy generated from traditional power sources such as coal or natural gas.