C2N examines the Grattan Institute article “Nuclear Energy for Australia”, by Tony Wood & Alison Reeves, released 9th December 2024 with the appraisal from the findings from the Frontier Economics Report No. 2, released in December 2024.
Grattan Institute article can be viewed here: https://grattan.edu.au/news/nuclear-energy-for-australia/
Even without the current prohibitions, current nuclear technologies are too expensive and would take too long to deploy to be useful here.
The Frontier Economics Report No.2 shows current nuclear technologies can be used, with existing nuclear reactors combined with renewables. This is significantly cheaper than renewables with batteries, pumped hydro and gas turbines.
By using proven reactor designs, we can replace coal and meet Australia’s 2050 netzero targets. Frontier Economics Report No.2 takes account of a sequential transfer of energy, from coal-to-nuclear (C2N) that accounts for coal operator capacities.
Second, fully develop the role of gas as a backup technology, while supporting research and development on the alternatives that are very costly today.
Gas backup technology isn’t imperative for providing emergency backup electricity, if coal power stations are kept running to provide baseload electricity, and are then replaced by nuclear power stations.
Gas backup should be planned carefully to meet the requirements of the NEM based on 54% renewables and 38% nuclear, rather than 100% renewables. Ideally by 2050, sufficient nuclear energy should be provided to avoid the need for gas turbines. Since relying on gas undermines our net-zero by 2050 obligations.
And third, stay close to technical and economic developments in nuclear technology.
Australia hasn’t done well in anticipating technical and economic developments in nuclear energy. Cost savings are achieved through using proven technologies such as Kepco APR-1400s rather than unproven small modular reactors (SMRs) and first of a kind reactor (FOAKs).
The situation will improve if federal and state nuclear energy bans are lifted, with a reasonable expectation that nuclear energy projects could go ahead. The government can further de-risk nuclear, by having a fleet of the same reactors, with consistent training and redundancies throughout.
In the long term, beyond 2040, would be a more appropriate time to consider SMRs and other emerging technologies in our energy mix, once they have a proven track record, and can be deployed at a reasonable cost.
Australia should position itself to be a fast adopter of nuclear if and when it becomes economical. Preparatory work on legislation and regulations could begin ahead of that time if justified by emerging circumstances.
Frontier Economics Report No.2 has shown that renewables plus nuclear energy is between 25% and 44% cheaper than a 100% renewables pathway.
As a result of this, we should commence work on legislative and regulatory changes in adopting nuclear energy. This should ideally be undertaken with bipartisan support and with an undertaking by bureaucrats and academics, not to be obstructive in developing a far more efficient and progressive energy pathway for Australia.