Australia’s energy boss has rejected the idea that nuclear power is the answer to the country’s energy problems. He says it is too expensive and cannot be built fast enough to replace old coal power plants.
Nuclear Too Costly and Slow
Opposition Leader Peter Dutton has stirred up the climate debate by attacking the government’s renewable energy plans and pushing for seven nuclear power stations by 2050. However, the CSIRO reports that renewable energy is the cheapest option, while a nuclear plant could cost up to $16 billion to build.
Renewable Energy is the Future
Daniel Westerman, head of the Australian Energy Market Operator (AEMO), stressed that nuclear power is too costly and slow to develop. “Nuclear power won’t be ready in time to replace Australia’s coal-fired power stations,” he said. “We need to act now.”
Coal Plants Closing Fast
Australia’s coal-fired power stations, which have been the main source of electricity for over 50 years, are closing sooner than expected due to old age and competition from cheaper renewable energy.
At least half of the 14 remaining coal plants on the east coast will shut down by 2035. AEMO’s recent 25-year plan, created after talking to 2,100 stakeholders, predicts that 90 percent of the remaining coal capacity will likely shut by 2035 and that coal will be gone from the grid by 2040.
Best Path Forward
The plan concludes that the best and cheapest way to transition energy is to build a grid dominated by renewables, supported by battery and hydropower storage, and backed up by gas-powered generation. AEMO did not consider nuclear energy costs because nuclear power is banned by federal law.
Nuclear Still Expensive
Speaking at the Australian Clean Energy Summit, Westerman pointed to research from the CSIRO and AEMO showing that nuclear is one of the most expensive forms of electricity. The report found that Australia’s first nuclear plant would cost up to $16 billion and wouldn’t be operational until at least 2040, despite the Coalition’s promise it would be ready in the 2030s.
“AEMO does not favor one type of energy over another,” Westerman said. “We focus on finding the cheapest path to reliable and affordable energy for Australian consumers.”
Opposition’s View
Opposition energy spokesman Ted O’Brien said the Coalition supports a balanced mix of renewables, gas, and nuclear energy to replace coal. However, he argued that AEMO’s assumptions on coal plant closures are influenced by government targets that don’t match reality.
There are concerns that the government’s 82 percent renewable energy target by 2030 may not be achievable due to slow progress on new generation, storage, and transmission projects. The lack of new projects is also raising worries about the impact of imminent coal closures, leading the Victorian and NSW governments to make deals to keep some plants open longer.
“AEMO’s predictions of power plant closures are driven by Labor’s policies, which prioritize ideology over energy security,” O’Brien said. “Australia can’t afford to shut down its round-the-clock power stations before replacements are ready.”
