The Government science organisation said the latest report into generation costs found that all technology costs had increased and the industry was concerned that the rapid pace of the energy transition was likely to impact prices further.

“This is attributed to the massive scale of manufacturing, raw materials and labour required to develop and deploy clean energy technologies consistent with net zero goals,” the report said.

CSIRO’s chief energy economist and author of the report Paul Graham said the pandemic had led to supply constraints which had impacted the price of raw materials that was required for the technology. The war in Ukraine made those issues even worse while inflation added to the mix.

However, the cost spiral was showing signs of moderation.

The report also found that wind and solar generation were the fastest growing source of energy and that batteries were likely to play a crucial role in supporting the grid and in the expansion of electric vehicle deployment.

The State Government has also applauded the development of the new 50MW battery, which it said would help revolutionise the management of electricity supply when it is fully operational.

The battery was developed by Genex, which is also building the Kidston pumped hydro project in north Queensland.

Chief executive James Harding said the battery would store 35,200 megawatt hours of power each year and enable the further penetration of renewables.

It has the capacity to power about 4000 homes a year.