When my nephew recently asked rhetorically "why wouldn't nuclear be cheaper?", I realised that political smoke-screening on nuclear energy is having its desired effect. So what was my response? The first thing I said was I'm technology neutral. I'm open to all sources of energy as long as they're zero-emissions, reliable, safe and low-cost. My second point was, on that basis, Australia doesn't need nuclear because it's too expensive and slow in comparison to renewables. My third point was that the LNP's spruiking of nuclear isn't about climate action or decarbonisation. It's a hand grenade thrown for distraction and delay.
Exploring the case of Spain illuminates why renewables are the clear choice for Australia's energy future. Read on to understand more.
In Spain, high renewable energy investment has led to significantly lower electricity prices. Solar and wind generation now account for over 50 per cent of electricity production and have driven electricity prices down to near €2 per megawatt-hour. That compares to €67 in France which is heavily reliant on nuclear power. This stark difference highlights the economic, commercial and social benefits of investing in renewables over nuclear. Especially for Australia, which like Spain, has abundant solar and wind resources.
Australia's renewable energy resources are immense. Our solar and wind resources are capable of generating much more electricity than we consume. This potential is not just theoretical; we've already been making strides in the roll out of renewables. South Australia, for example, often runs at 100% renewables and the ACT is already at 100%.
Investing in renewables offers several advantages for Australia, especially in the context of the cost of living. Firstly, the cost of generating electricity from renewable sources like wind and solar has plummeted globally, making it the cheapest form of new electricity generation. Solar and wind power can provide low-cost electricity to consumers, contributing to lower energy bills and alleviating cost of living pressures. According to CSIRO, nuclear options in Australia would cost between five and ten times more.
Secondly, renewable energy projects can be deployed much faster than nuclear, meaning they can start delivering benefits to the grid and to consumers much sooner. Given that the world has already hit the Paris Agreement 1.5C threshold, rapid deployment capability is crucial. Small Modular Reactors that Peter Dutton talks about have never been built anywhere in the world. They're still only ideas.
Moreover, the decentralisation potential of renewables, particularly solar, can empower Australian households and businesses to generate their own electricity, further driving down costs and enhancing energy security. This contrasts with the centralised nature of nuclear power, which requires significant infrastructure, security, and upfront investment, translating into higher costs for consumers. The solar panels on the roof of my house mean we don't pay power companies anything for our electricity. Indeed, they pay us for the surplus electricity we generate and share to the grid.
Environmental and safety considerations also favor renewables over nuclear. Renewable energy projects have much smaller environmental footprints and do not produce hazardous waste, unlike nuclear power, which requires radioactive waste management and brings with it the risk of accidents like those in Chernobyl and Fukushima.
Spain's experience underscores the economic and environmental viability of scaling up renewables for Australia. The lessons are clear: investing in solar and wind leads to lower electricity prices, faster decarbonisation, and greater energy independence and security.
The answer to the nuclear question is a simple one: Australia doesn't need it. Our abundant renewable energy resources provide much more cost-effective, commercially viable and safer means of meeting our energy needs and addressing the urgent challenge of climate change. Let's not fall victim to Peter Dutton and the LNP's tactics of distraction and delay.
