Climate Change Minister Chris Bowen asserts the Albanese government’s Reliable Renewables plan is the only one supported by experts to deliver clean, and cheap energy.
His comments come amid the release of the GenCost report that, according to its modelling, found nuclear energy would cost up to eight times more than renewable sources.
“Our Reliable Renewables plan is backed by experts to deliver the lowest cost energy where and when we need it to power households and industries,” Mr. Bowen said in a statement.
“Peter Dutton’s half-baked plan would see Australians foot massive bills to build risky reactors that have been shown by experts to be the most expensive form of energy, and too slow to keep the lights on.”
The 2023-24 GenCost report, prepared by the CSIRO and the Australian Energy Market Operator (AEMO), compared the costs of building new coal, gas, solar, wind, and batteries, against nuclear generators and found that firmed renewables, including transmission and storage costs, would be the cheapest source of power.
The report estimated costs to be between $83/MWh and $120/MWh in 2030, if they account for 80 percent of variable generation.
In contrast, the report states that if small modular nuclear reactors (SMR) were up and running in Australia by 2030—deemed highly unlikely—the cost of their power would be up to $382 MWh, not including the hefty “first of a kind” premium—referring to the fact, SMRs are still in their developmental stage.
This means that power from SMRs would be up to eight times more costly than firmed large-scale wind and solar when the “first of a kind” premium is factored in.
The analysis also found that the cost of power from large-scale nuclear reactors would be up to three times more than renewables, and construction costs would likely double due to the “first of a kind” premium.
“Abundant, low-cost energy is a vital input for the government’s Future Made in Australia plan to grow jobs and exports while reducing emissions.” Minister for Industry and Science Ed Husic said.
The GenCost report said that “the first full operation would be no sooner than 2040” for SMRs and years later for large-scale nuclear reactors.
“We know Australia doesn’t have that time—24 coal plants announced their closure dates under the previous government, and 90 percent of Australia’s coal-fired power is forecast to close by 2035,” the ministers said in a joint statement.
Opposition Says Nuclear the Best Way Forward
Meanwhile, the federal opposition has continued its push for nuclear energy to be included as part of Australia’s energy options.“Well, if you look at the top 20 economies in the world, Australia is the only economy that hasn’t adopted nuclear power, or hasn’t signed up to it,” Opposition Leader Peter Dutton in an interview.
Mr. Dutton emphasised that relying on renewables will only result in skyrocketing electricity prices and compromise businesses.
He said big energy users and industrial smelters would be unable to ramp up production in the afternoon as people come home from work, and charge their cars and use home appliances.
“There is going to be disruption to supply, which means manufacturers will just move offshore where they can get cheaper electricity in a nuclear fuelled market,” he said.
“They will have no interest in being here if there is interruption, constant interruption, to their energy supply. You can’t run a business like that.”
