27/06/2024
There was robust debate about the role of nuclear energy in Australia at CEDA’s State of the Nation conference on Thursday.
Federal Opposition Leader Peter Dutton acknowledged the high initial costs of nuclear.
“As to the cost, there is a big upfront capital cost, there's no question about that,” Mr Dutton said.
“But if you look at many of the proposals at the moment that are either in the pipeline or are commercialised, none of them would have been possible to stand on their own IRR (internal rate of return) or to stand up without government assistance, so it's a distorted market.”
Prime Minister Anthony Albanese said the true cost of nuclear would be another lost decade on the path to net zero.
“We cannot afford nuclear power to be deployed as just another weapon in the culture wars,” Mr Albanese said.
Resources Minister Madeleine King labelled the policy as a “nuclear fantasy” and questioned the economic rationale behind the opposition’s proposal for “a state-owned network of uncosted nuclear reactors”.
While Mr Dutton framed the debate as a choice between nuclear and green hydrogen, Mr Albanese also pointed to policies including Rewiring the Nation, Solar Sunshot, the New Vehicle Emissions Standards, Future Made in Australia and the Capacity Investment Scheme, with green hydrogen just one aspect of the renewable energy mix.
“The Capacity Investment Scheme will deliver 32 gigawatts of dispatchable and variable energy capacity by 2030 – the equivalent of half the current National Electricity Market,” Mr Albanese said.
“This is what happens when we provide the clarity and the certainty for investors to act.”
Mr Dutton agreed on the need for investor certainty, stating he wanted the lowest possible cost option.
“I want there to be reliable power because we won't have industry and investment if there's uncertainty.”
However, Saul Griffiths, CEO of Rewiring Australia, said while nuclear was part of international net-zero plans, it was less viable than renewables in an Australian context.
“I think it's unscientific to take nuclear off the table as a climate response, but really, Australia has the least economic case for nuclear," he said.
“We have the world's lowest population density of a large nation with extraordinary renewables, so we can produce five, six or seven times as much energy as we need with renewables without any nuclear.”