Australian Climate Change Minister Warns of High Costs Associated with Nuclear Power in the country
The analysis revealed that the cost of power from large-scale nuclear reactors could be up to eight times higher than that from reliable renewables.
Climate Change Minister Chris Bowen claims that the Albanese government’s Reliable Renewables plan is the only one endorsed by experts to provide clean and affordable energy.
These statements were made in response to the release of the GenCost report, which, based on its modeling, concluded that nuclear energy could cost up to eight times more than renewable sources.
“Our Reliable Renewables plan is supported by experts to deliver the most cost-effective energy for powering households and industries,” stated Mr. Bowen.
The 2023-24 GenCost report, prepared by the CSIRO and the Australian Energy Market Operator (AEMO), compared the costs of various energy sources and found that firmed renewables, including transmission and storage costs, would be the cheapest option.
On the contrary, the report indicated that if small modular nuclear reactors were operational in Australia by 2030—a scenario deemed unlikely—the cost of their power could be up to $382 per MWh, without considering the substantial “first of a kind” premium associated with SMRs.
This would make power from SMRs up to eight times more expensive than firmed large-scale wind and solar power when factoring in the “first of a kind” premium.
The report also highlighted that power from large-scale nuclear reactors could be up to three times more costly than renewables, with construction costs potentially doubling due to the “first of a kind” premium.
“Abundant, low-cost energy is essential for the government’s Future Made in Australia plan to boost jobs, exports, and reduce emissions,” stated Minister for Industry and Science Ed Husic.
The GenCost report projected that the first operational SMR would not be before 2040, and even later for large-scale nuclear reactors.
In contrast, large-scale solar alone is now 8% cheaper to build compared to a year ago, further validating the potential of renewable energy sources.
Opposition Says Nuclear the Best Way Forward
Meanwhile, the federal opposition continues to advocate for nuclear energy to be considered as part of Australia’s energy mix.
Opposition Leader Peter Dutton highlighted that Australia’s exclusion of nuclear power puts it in a unique position among the world’s top 20 economies.
Mr. Dutton warned that relying solely on renewables could lead to exorbitant electricity prices and pose challenges for businesses.
He expressed concerns about potential disruptions to energy supply affecting industrial operations, ultimately driving manufacturers to seek cheaper electricity in markets powered by nuclear energy.
“They will have no interest in operating here if there are constant interruptions to their energy supply. You can’t sustain a business in that environment,” he remarked.
