Replacing coal-fired power stations with small modular nuclear reactors, would cost taxpayers $387 billion, implying the option would not get backing from the industry, suggested Chris Bowen, the Climate Change Minister.
More than 70 small modular nuclear reactors would be required to compensate for the lost power generation from the retirement of the current coal-fired station fleet, as per analysis from the Climate Change Department. Mr. Bowen stated that this analysis indicated that nuclear power was not a feasible choice for power generation.
“The opposition is aiming to undermine the advantages of small modular nuclear reactor (SMR) technology without taking responsibility for the expenses and outlining their plans for funding it,” stated Mr. Bowen.
The discussion about whether Australia should embrace nuclear power as a component of its efforts to decarbonize the grid intensified this year following opposition energy spokesman Ted O’Brien’s outspoken support. Mr. Bowen and the Labor party strongly oppose this, highlighting the expensive nature of nuclear power as the primary concern.
Mr. Bowen’s department’s analysis assumes that taxpayers would bear the entire $387 billion cost, with no involvement from private firms. Nonetheless, the Coalition has proposed the possibility of repurposing existing coal-fired power stations for nuclear energy, thereby leaving the question of commercial viability to the market.
Opposition Leader Peter Dutton mentioned in July that there are plans in the United States to substitute a coal-fired power plant with a small modular reactor in Wyoming, as well as global efforts to incorporate nuclear power into the energy mix.
Justin Trudeau has given his support to a plan that will result in the deployment of SMRs in several Canadian provinces, proving that nuclear power is not solely a conservative political issue, Mr. Dutton stated.
Australia’s current coal-fired power plants generate 21,300 megawatts of electricity, as per the analysis utilizing data from the CSIRO’s GenCost report and public information from the Australian Energy Market Operator. 71 small modular reactors, each producing 300 megawatts, would be needed to substitute this capacity.
Each nuclear-generated megawatt of electricity would require an investment of $18.1 million, as estimated by the climate change department. This amounts to approximately $5.4 billion per reactor, in contrast to $1 million for large-scale solar and $2 million for onshore wind.
The GenCost study discovered that the standard “levelised cost of electricity,” which aims to make fair comparisons, is projected to range from $60 to $100 per megawatt hour for solar and wind energy by 2030.
The mentioned amount encompasses expenses for integrating additional transmission, storage, and gas “peaking” capacity to counterbalance the variability of renewables.
The CSIRO/AEMO analysis determined that SMRs would be priced at $200 to $350 per MWh, in contrast.
Mr. Bowen has stated that there is a need for Peter Dutton and the opposition to clarify why Australians will face a $387 billion cost for a nuclear energy plan that defies economic and rational explanation.
“After enduring nine years of disarray in energy policy, instead of wholeheartedly adopting a renewable future that is clean, affordable, and reliable, the Coalition’s only commitment is to a nuclear-influenced energy policy with a price tag in the billions.”
Mr O’Brien has dismissed this idea, emphasizing that Australia should only evaluate new and developing technologies that will become more affordable.
