36 Questions
What is the estimated capacity of the five coal-fired generators that will likely be retired by 2035?
10 gigawatts
What is the purpose of the 'levelised cost of electricity' metric?
To compare the costs of different energy technologies
What is the expected capacity factor of a nuclear power station?
90-95%
What is the projected cost of large-scale nuclear generated electricity by 2040?
$136-$226 per megawatt-hour
What is the proposed action by the Coalition government regarding nuclear power stations?
Building 7 nuclear power stations over 15 years
What might happen to the existing coal-fired fleet by 2035?
50-60% of them will be retired
Why is the capacity factor of a solar farm typically lower than that of a nuclear power station?
Because it is night for half of the time and cloudy some of the time
What is the current estimated cost of large-scale nuclear generated electricity?
$155-$252 per megawatt-hour
What is the estimated cost of the Hinkley Point C nuclear plant in the United Kingdom?
£34 billion
According to the CSIRO's GenCost report, what is the estimated levelised cost of electricity produced from coal?
$100-200 per megawatt-hour
What is the estimated cost of solar and wind energy per megawatt-hour?
$60-90 per megawatt-hour
Why would a mix of wind and solar energy and storage cost around $100-120 per megawatt-hour?
Because of the cost of getting the renewable energy into the grid
What is the estimated cost of a nuclear-based system per megawatt-hour?
Three to four times the cost of coal or gas
What would be the main component of a household energy bill under the nuclear scenario?
The cost of transmission and distribution
How would a large energy consumer such as an aluminium smelter be affected by the increased cost of electricity generation?
They would pay more per kilowatt-hour because of the increased cost of generating electricity
Why would a nuclear-based system be unlikely to be competitive in a free market?
Because of the high cost of nuclear power
What would be the impact on Australian industry if the cost of electricity generation were to increase significantly?
It would lead to a significant increase in energy costs for industry
What is the main reason why the cost of nuclear power in Australia may end up being twice as expensive as CSIRO has calculated?
Because of a combination of factors including higher local wages, regulations and standards, and aversion from lenders to risk
What is the estimated cost of the Hinkley Point C nuclear plant in the United Kingdom?
£34 billion
Wind and solar energy are dispatchable sources of energy.
False
Why would a nuclear-based system be unlikely to be competitive in a free market?
Because it would likely be three to four times more expensive than other options, making it uncompetitive.
In a nuclear-based system, the cost of getting the power from the power stations to your home or business is approximately _________ of your energy bill.
25-30 cents per kilowatt-hour
Match the energy sources with their estimated levelised cost of electricity:
Coal = $100-200 per megawatt-hour Gas = $120-160 per megawatt-hour Solar and Wind = $60 and $90 per megawatt-hour, respectively Nuclear = £34 billion (about A$65 billion)
What would be the impact on Australian industry if the cost of electricity generation were to increase significantly?
It would be a severe cost burden
The cost of transmission and distribution would be significantly different under the nuclear scenario compared with the current system.
False
Why would the cost of nuclear power in Australia may end up being twice as expensive as CSIRO has calculated?
Because of the lack of a nuclear industry in Australia, leading to higher costs for importing expertise and infrastructure.
A large energy consumer such as an aluminium smelter would pay approximately _________ per kilowatt-hour under the nuclear scenario.
40-50c
What is the main component of a household energy bill?
The cost of transmission and distribution
What is the estimated capacity of the seven nuclear power stations proposed by the Coalition?
10 gigawatts
The cost of nuclear power in Australia is likely to be lower than the estimated cost of large-scale nuclear generated electricity by 2040.
False
What is the main factor that affects the capacity factor of a solar farm?
night time and cloudy weather
The CSIRO's GenCost report outlines the current and projected build and operational costs for a range of energy ___________.
technologies
What is the main reason why the cost of nuclear power in Australia may end up being twice as expensive as CSIRO has calculated?
Unconsidered cases where costs have blown out dramatically
The Australian Energy Market Operator has run modelling scenarios to delve into the details of what might happen to electricity prices under a high-uptake nuclear scenario.
False
Match the following energy technologies with their capacity factors:
Nuclear power station = 90–95% Solar farm = 20–25% Coal-fired generator = 80–90% Wind farm = 30–40%
What is the purpose of the 'levelised cost of electricity' metric?
To take into account the capacity factor of a technology
Study Notes
Nuclear Power in Australia
- Coalition government proposes building 7 nuclear power stations over the next 15 years
- Experts claim nuclear power would be expensive and slow to build
Existing Coal-Fired Fleet
- By 2035, 50-60% of coal-fired fleet will be retired, including 5 generators with 10 gigawatts capacity
- 7 proposed nuclear plants would contribute roughly 10 gigawatts of capacity
Levelised Cost of Electricity
- Takes into account capacity factor (how much electricity a technology produces)
- Capacity factor: nuclear (90-95%), solar farm (20-25%)
- CSIRO's GenCost report: nuclear electricity would cost 155−252/MWh,fallingto155-252/MWh, falling to 155−252/MWh,fallingto136-226/MWh by 2040
Cost of Nuclear Power
- CSIRO's GenCost report based on recent projects in South Korea, does not consider cost blowouts
- Hinkley Point C nuclear plant in UK: cost around £34 billion (A65billion),A65 billion), A65billion),A20,000/kW
- CSIRO's assumption: $8,655/kW, true cost may be twice as expensive
Other Factors Affecting Nuclear Power
- Australia lacks nuclear industry, requiring imported expertise
- Large infrastructure projects often experience cost blowouts
- Local wages, regulations, and standards increase costs
Comparison of Energy Costs
- Coal: $100-200/MWh
- Gas: $120-160/MWh
- Solar and wind: $60-90/MWh
- Renewable energy with storage and grid integration: $100-120/MWh
- Nuclear (supplemented by gas): potentially 3-4 times more expensive than coal
Impact on Household Energy Bill
- Current retail tariffs: 25-30 cents/kWh ($250-300/MWh)
- Transmission and distribution costs will not change significantly under nuclear scenario
- Retail tariff under nuclear scenario: 40-50c/kWh
- Large energy consumers (e.g., aluminium smelters) would be severely affected by increased energy costs
Explore the feasibility of building nuclear power stations in Australia, estimating the cost and impact on energy prices, and understanding the context of coal-fired fleet retirement.
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