Nuclear Energy: An Economic Asset in Australia’s Energy Mix, Says Study

An independent economic analysis concludes that including nuclear energy in Australia's electricity market could yield substantial savings, with a cost reduction estimated at 44% compared to a scenario relying solely on renewable energy.

Partagez:

A recent report by Frontier Economics compares two energy scenarios for Australia. This analysis aims to determine whether the integration of nuclear energy into the National Electricity Market (NEM) offers a cost-effective and reliable alternative to a strategy based solely on renewable energy and storage.

Two Energy Scenarios for Australia

The report presents two distinct pathways:

– Progressive Scenario: This model includes nuclear energy, consistent with the policy proposed by the Liberal-National Coalition (LNP).
– Step Change Scenario: Supported by the current Labor government, it relies exclusively on renewable energy and storage.

The findings highlight that the Progressive Scenario would be 44% less expensive between 2025 and 2051. The higher costs of the Step Change Scenario are attributed to the substantial investments required in renewable capacity and storage infrastructure to address their intermittency.

Savings and Increased Reliability

According to Frontier Economics, integrating nuclear energy could generate approximately AUD 263 billion in savings over the study period while enhancing the reliability of the electricity grid. A variant of the Step Change model, which includes a limited share of nuclear energy, would also deliver significant financial benefits.

Frontier Economics’ Managing Director, Danny Price, stated: “Including nuclear energy in our energy mix is more cost-effective in the medium and long term, and it stabilizes electricity production.”

Strategy of the Liberal-National Coalition

The Coalition plans to build small modular reactors (SMRs) in South Australia and Western Australia, with additional facilities considered in Queensland, New South Wales, and Victoria. These projects, according to Shadow Minister Ted O’Brien, follow international guidelines from the International Atomic Energy Agency (IAEA) and established standards in several developed economies.

Peter Dutton, the LNP leader, declared that this approach would reduce costs for households while strengthening Australia’s industrial competitiveness. “This strategy aligns with international practices where nuclear energy plays a crucial role in combining economic growth and emissions reduction,” he said.

Criticism from the Government

Climate and Energy Minister Chris Bowen criticized the report’s conclusions, stating that Frontier Economics’ estimates are significantly biased. According to Bowen, the projections ignore the real costs and delays associated with building nuclear infrastructure while overestimating the benefits.

Meanwhile, the CSIRO and AEMO have published reports favoring renewable energy, asserting that it represents a faster and more affordable solution to meet Australia’s energy goals.

A Political and Economic Debate

Beyond the figures, this debate illustrates a stark political divide between the two energy strategies. The Coalition favors a mix that includes nuclear energy for economic and strategic reasons, while the government emphasizes the urgency of a rapid transition to renewables. The resulting decisions will have major implications for Australia’s electricity market.

Energy Fuels Inc. announced record production of 638,700 pounds of uranium during the second quarter of 2025 at its Pinyon Plain mine in Arizona, significantly surpassing initial site performance forecasts.
Argentina and Peru have signed an agreement expanding their scientific and technological cooperation in the civil nuclear field, including joint research projects and specialised training programmes for future development.
After several decades without funding nuclear projects, the World Bank has formed a strategic partnership with the IAEA to provide technical and financial support to countries integrating nuclear energy into their energy strategies.
South Korea's Nuclear Safety and Security Commission officially validates the decommissioning of reactor number one at the Kori plant, initiating an unprecedented project for the national industry scheduled to last until 2037.
Uranium producer enCore Energy surpasses three thousand pounds per day at its Alta Mesa ISR complex and sees three new Texas laws as a strong signal for faster nuclear production permits.
The International Atomic Energy Agency expresses concerns over Iran’s enriched uranium stockpiles following the abrupt suspension of inspections at key sites disrupted by recent attacks whose consequences remain uncertain.
NPCIL has announced an extension until September 30 for industrial proposals concerning Bharat Small Reactors (BSR), following increased interest from the Indian private sector.
A regional court has upheld the award of two new reactors in the Czech Republic to Korea Hydro & Nuclear Power, dismissing Électricité de France’s challenge to the €16bn contract in a decisive step for the national energy programme.
Facing rising temperatures, EDF anticipates cuts in nuclear production starting early July, primarily due to thermal constraints on rivers used for cooling the power plants.
The preliminary agreement launches planning and site assessment for a tailored AP1000 reactor, following two years of feasibility study, and enlists Westinghouse and Hyundai to support Fortum’s regional nuclear expansion.
Donald Trump's unprecedented decision to dismiss Christopher Hanson, a member of the NRC, provokes outrage among former federal officials and raises concerns over the regulatory independence of the U.S. nuclear sector.
Uranium Energy Corp strengthens its position in Anfield Energy Inc., now holding approximately 32.4% of the company’s shares following an investment of CAD19.55mn ($14.82mn), significantly expanding its strategic influence in the uranium market.
New York State plans an advanced nuclear power plant with a 1-gigawatt capacity to meet long-term energy and economic goals, involving significant investment to enhance regional energy independence.
Niger announces its intention to nationalize SOMAÏR, a mining company jointly owned with Orano, provoking strong opposition from the French company and paving the way for further international legal tensions.
Russia strengthens its economic presence in Mali with new agreements, notably in nuclear energy and gold refining, consolidating strategic cooperation within a rapidly evolving geopolitical context.
The US government grants a fourth payment of $100.45 mn to Holtec International to restart the Palisades Nuclear Plant, pending regulatory approval, marking an unprecedented event in the United States.
EDF announces a major agreement with Apollo to raise up to £4.5 billion via bonds to finance the British nuclear project Hinkley Point C, whose costs continue to rise significantly.
The Élysée proposes Anne-Isabelle Étienvre, current Director of Fundamental Research at the CEA, as General Administrator to replace François Jacq, recently appointed President of CNES.
Greek Prime Minister Kyriakos Mitsotakis has announced his country's interest in small modular nuclear reactors to meet national energy challenges and decarbonize the maritime sector within the next fifteen years.
TerraPower, an American nuclear company, secures $650 million funding from investors, including NVIDIA, to develop its Natrium modular reactors in the United States and internationally.