Why South Australia will be a nuclear power battleground at the 2025 federal election
Adelaide Now, 15 Apr 24
Crunch time for affordable, reliable electricity is coming fast and SA will be key to deciding nuclear power’s fate, writes Paul Starick.
Crunch time is rapidly approaching in the race to deliver affordable, reliable electricity while transitioning Australia to a net-zero economy.
The next federal election, expected early next year, will be yet another battle in the climate war that has deadlocked politicians and delivered little for voters – other than dramatically higher power prices.
The fundamental choice at this election will be between pumping billions of dollars into building wind and solar farms – or nuclear power plants.
Prime Minister Anthony Albanese argues renewable energy will bring cheaper power prices and boost sovereign capability by reviving manufacturing.
A Net Zero Australia report released last July finds $1.5 trillion will have to be spent by the end of this decade, particularly on rolling out transmission networks to support new wind and solar, if Australia is going to meet its emissions reductions targets by 2050.
The group, which included experts form Melbourne, Queensland and Princeton universities, said: “Nuclear power should not be in our plans, because it’s too expensive and slow”.
His rival, Opposition Leader Peter Dutton, argues the Coalition could deliver cheaper power prices by installing the first small-modular nuclear power reactors into the grid by the mid-2030s, at a cost of $3.5bn to $5bn each.
They would be built by Rolls-Royce, also the supplier of nuclear reactors for AUKUS submarines to be built in Adelaide as part of $368bn project.
The reported cost and timeline, at the very least, raises strong questions over Labor’s blanket rejection of nuclear as uneconomic, given the amount that is being ploughed into renewables.
I find it amazing that the Advertiser just accepts Peter Dutton’s claims on the timing and costs of the as yet non-existent small nuclear reactors
South Australia will be at the epicentre of this epic battle over electricity generation and prices.
The state has world-leading penetration of renewable energy and the world’s largest uranium resource at Olympic Dam.
The Coalition wants a nuclear power plant at Port Augusta.
The consequences are huge, as straight-talking Alinta Energy chief Jeff Dimery said on Wednesday, when he argued Australians must face the “hard truth” of having to pay more for electricity to reach net zero by 2050”.
State and federal Labor governments want to rapidly accelerate the renewable push.
Premier Peter Malinauskas in late February said the 100 per cent renewables net electricity generation target would be brought forward three years from 2030 to 2027.
The catalyst, he vowed, would be a clean energy boom underpinned by the state-owned, $593m hydrogen power plant operating in Whyalla from 2026.
This project, a core 2022 election promise, almost certainly will attract federal funding in the May federal budget, as part of massive government investment in the energy transition promised by Prime Minister Anthony Albanese in a landmark speech on Thursday.
Mr Albanese is citing green iron production at Whyalla steelworks, fuelled by green hydrogen from the state-operated plant, as a key example of his Future Made in Australia plan.
But the federal Coalition and state Liberals sense an opportunity to wedge Mr Malinauskas on nuclear energy.
He seems a supporter, frustrated only by a disciplined commitment to implement his hydrogen power plant election promise, plus remain in lock-step with Labor colleagues by insisting it is uneconomic……………….
Whatever the machinations, voters will soon, appropriately, decide nuclear power’s future.
Banks Unwilling To Finance $5 Trillion Global Nuclear Development
Oil Price, By Alex Kimani – Apr 14, 2024,
- Nuclear energy is enjoying a renaissance in the U.S. and many Western countries thanks to the global energy crisis.
- Bankers appear unwilling to finance the $5 trillion the IAEA estimates the global nuclear industry needs for development until 2050.
- Over the past several years, billions of federal dollars have gone into the development and demonstration of next-generation small modular reactors (SMRs) and advanced fuel cycle reactors.
……. Back in December, at the COP28 summit, 22 countries including the US, Canada, the UK, and France pledged to triple nuclear power capacity by 2050 (from 2020 levels). Last month, 34 nations, including the United States, China, France, Britain, and Saudi Arabia, committed “to work to fully unlock the potential of nuclear energy by taking measures such as enabling conditions to support and competitively finance the lifetime extension of existing nuclear reactors, the construction of new nuclear power plants and the early deployment of advanced reactors.”
…………………. But nuclear’s revival might be dead in the water with lenders balking at financing what they consider a high-risk sector. Last month, the International Atomic Energy Agency convened the first ever nuclear summit in Brussels. Unfortunately, bankers appeared unwilling to finance the $5 trillion the IAEA estimates the global nuclear industry needs for development until 2050.
“If the bankers are uniformly pessimistic, it’s a self-fulfilling prophecy,” former U.S. Energy Secretary Ernest Moniz said after listening to a panel of international lenders.
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“The project risks, as we have seen in reality, seem to be very high,” said European Investment Bank Vice President Thomas Ostros, adding that countries need to focus more on renewables and energy efficiency. Ines Rocha, a director at the European Bank of Reconstruction and Development, and Fernando Cubillos, a banker at the Development Bank of Latin America, concurred, saying their lending priorities lean toward renewables and transmission grids. “Nuclear comes last,” Cubillos said.
“We need state involvement, I don’t see any other model. Probably we need quite heavy state involvement to make projects bankable,” Ostros said.
State Involvement
As Ostros has noted, at this juncture, the nuclear sector probably requires considerable government support if it’s to really take off. In the past, the U.S. government has been involved in nuclear energy mainly through safety and environmental regulations as well as R&D funding in enrichment of uranium projects like HALEU. However, lately, the federal government is becoming more heavily involved in the nuclear energy sector.
Over the past several years, billions of federal dollars have gone into the development and demonstration of next-generation small modular reactors (SMRs) and advanced fuel cycle reactors. U.S. EXIM has been providing financing for overseas nuclear projects for more than a half-century. EXIM has issued Letters of Interest for up to $3 billion for nuclear exports to Poland and Romania. Established in 1934, the Export-Import Bank of the United States (Ex-Im Bank), operates as an independent agency of the U.S. Government under the authority of the Export-Import Bank Act of 1945. Similarly, USTDA has committed funding for the export of nuclear power technologies to Poland and Romania, Ukraine and Indonesia. Much of the funding is for technical activities, and includes a significant focus on the potential export of small modular reactors.
Last month, the U.S. federal government agreed to provide a $1.5 billion loan to restart a nuclear power plant in southwestern Michigan, abandoning earlier plans to decommission it. The Michigan plant will become the first ever nuclear plant in the U.S. to be revived after abandonment……………….
Meanwhile, California regulators have given the greenlight for the Diablo Canyon plant to operate through 2030 instead of 2025 as the state transitions toward renewable power sources. Pacific Gas & Electric, the plant’s owner, says it has received assistance from the federal government to repay a state loan………. https://oilprice.com/Alternative-Energy/Nuclear-Power/Banks-Unwilling-To-Finance-5-Trillion-Global-Nuclear-Development.html
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