Peter Dutton claims nuclear plan would be $263b cheaper than Labor's strategy
Make us a preferred source
Make us a preferred source on Google
The news: Opposition Leader Peter Dutton's nuclear energy costings, based on independent modelling, reportedly show the path to net zero will be $263 billion cheaper by 2050 under his plan than Labor’s current path.
The costings, dropped to The Australian and the AFR, will be formally released on Friday. The plan is for the first small modular reactor to be up and running to replace a coal power station by 2035, but if it's a large scale reactor then 2037 is more likely. The modelling has been undertaken by Frontier Economics and assumes 2036 for the first plant to be operational.
The numbers: The total cost of the plan over the 25 years to 2050 is estimated to be $331 billion, compared to around $600 billion under Labor's current pathway, which has a greater focus on renewables. Nuclear is assumed to contribute 38% of energy generation, or about 14 gigawatts of power, by the end of this time period, with 53% from renewables and the balance from gas and storage. One nuclear plant in WA is included in the nuclear estimates.
The costings did not identify which of the seven earmarked sites for nuclear would be first to be built, with feasibility studies expected before making a choice. And the modelling did not include WA.
Coal generation is expected to be wound down more slowly than the Energy Market Operator's current scenario under the Coalition's plan.
One of the key sources of contention is that Labor estimates $122 billion for its renewables transition. The Frontier Economics report factors in the cost of new poles and wires for transmission including a multi-billion dollar Snowy Hydro upgrade.
The context: Dutton's plans to introduce nuclear into the energy mix have previously been met with skepticism from energy experts and economists, who say it would be too expensive. This includes the CSIRO, which released an amended report this week that doubled down on nuclear being much more costly than the current mix Labor is pursuing, which includes a heavy reliance on renewables.
What they said: “The Coalition’s energy plan will save Australians up to $263 billion compared to Labor’s renewables-only approach — a 44% saving for taxpayers and businesses,” said opposition energy spokesman Ted O’Brien told The Australian.
“Labor’s energy plan comes at five times the cost Australians were initially promised. This excessive burden is already being felt by families and businesses, with energy bills rising by up to 52% and more than 25,000 businesses forced to close their doors in part due to skyrocketing energy costs. In contrast, the Coalition’s approach integrates zero-emissions nuclear energy alongside renewables and gas, delivering a total system cost significantly lower than Labor’s," he said.
The sources: The Australian, AFR
