With rising energy demand, calls for decarbonisation, and growing concerns over the reliability of renewable energy, Australians are reconsidering their energy strategy. The looming closure of coal plants and the limitations of intermittent renewable sources like solar and wind have sparked renewed interest in nuclear, which proponents say could provide reliable, low-carbon baseload energy for Australia.

As the Australian Nuclear Association (ANA) explains: “Australia needs access to all available clean zero-carbon technologies, including nuclear energy, to meet the challenges of climate change, affordability, and energy security.”

The Financial Case For Nuclear

One of the most significant barriers to nuclear energy is its high upfront capital costs. Aidan Morrison, director of energy research at the Centre for Independent Studies, a Sydney-based thinktank, points out that nuclear plants are capital-intensive, requiring significant investment during construction.

However, Morrison emphasises that the key to reducing costs lies in economies of scale. “All the countries that have managed to make nuclear power affordable build [reactors] in fours and sixes and eights,” he said

The ANA agrees, highlighting that nuclear energy, if considered across its lifecycle, can be cost-competitive when “compared with the costs of transmission, storage, and overcapacity required for renewables”.