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Marion Rae

Renewable energy projects not immune to inflation sting

Chris Bowen Kane Thornton Peter Dutton Australia CSIRO Renewable Energy

Renewable energy projects are becoming more expensive but they are still more cost-effective. (Angela Harper/AAP PHOTOS) (AAP)

Renewable energy remains Australia's cheapest option for new sources of electricity but cost pressures are eating into capital, the national science agency says.

Modelling released on Tuesday shows renewables construction and installation costs rising by one-fifth on average, but the energy source remains more cost effective than new gas or coal plants.

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