Australia's Energy Crisis and Nuclear Power

Energy Prices and the Coalition's Nuclear Plan

• The Coalition's nuclear energy plan, announced by Opposition Leader Peter Dutton, lacks costings and modelling, making it unclear how it will affect energy prices.
• The first nuclear plant, if built, would not be operational for at least a decade, which is an optimistic timeframe.
• Replacing coal with gas in the medium-term would likely increase energy bills and greenhouse gas emissions.
• Gas is expensive compared to coal and is better suited for balancing a high-renewables system to meet weather-related shortfalls.
• Slowing down the rollout of renewables and speeding up gas production would drive up energy prices.

Nuclear Energy Capability

• The Coalition plans to build seven small and large nuclear reactors, adding about ten gigawatts of capacity to the grid.
• This is a small proportion of the generation capacity needed in the later 2030s.
• CSIRO research suggests that electricity produced by a large-scale nuclear plant in Australia would be at least 50% more expensive than firmed renewable energy.

Future Energy Prices

• Australia's total electricity generation must increase enormously to meet the electrification needs of other parts of the economy.
• Annual electricity consumption from Australia's grid will need to double by 2050, to about 300 gigawatts.
• The total system costs matter when it comes to electricity prices, and ten gigawatts of nuclear would be a very small part of the mix.

Criticism of the Coalition's Plan

• The Coalition has not explained what a "balanced" energy system would look like or what roles each technology would play in that system.
• The plan lacks detail on how it will address cost-of-living challenges now or in the 2030s and beyond.
• The Coalition's policy is likely to have the opposite effect of bringing down energy prices.