Nuclear enters Australian elections amid rising dependency on natural gas supplies

Nuclear energy emerges as a key election issue in Australia, as accelerating gas dependency intensifies amid coal plant closures, raising critical concerns about grid stability and energy pricing ahead of the 2025 federal elections.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25£/month*

*billed annually at 99£/year for the first year then 149,00£/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2£/month*
then 14.90£ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Energy policy has become a central focus of Australia’s upcoming federal elections scheduled for May 2025, with nuclear energy emerging as a critical point of debate. Australian voters will face a choice between two sharply contrasting strategies: the incumbent Labor government aims for renewable sources to represent 82% of electricity generation by 2035, whereas the opposition Liberal-National Party (LNP) proposes constructing approximately 13 gigawatts (GW) of nuclear capacity by 2051. However, a recent report by Norwegian consultancy Rystad Energy indicates achieving this 82% renewable energy target may be overly ambitious, with more realistic estimates projecting around 65%, highlighting potential shortfalls in energy supply and infrastructure.

Energy security under pressure

The planned closure of major coal-fired power plants such as Eraring in New South Wales (NSW) and Yallourn West in Victoria (VIC) by 2028 is set to exacerbate existing energy supply pressures, forcing reliance on alternative energy sources. Natural gas power plants, particularly peaking units designed for rapid activation during peak demand periods, will be critical in bridging the impending capacity gap. Although investments in storage solutions, including utility-scale batteries and pumped hydroelectric storage, are expected to add around 3 gigawatts (GW) of capacity by 2025, analysts underline concerns about timely implementation due to existing logistical bottlenecks.

Simultaneously, increasing global demand for gas-fired generation equipment is significantly extending delivery timelines for essential infrastructure. This poses additional challenges for Australia, where securing timely energy infrastructure is becoming critical to preventing severe market disruptions. The logistical delays for heavy turbine components further complicate Australia’s short-term energy stability, potentially amplifying existing vulnerabilities in electricity markets.

Growing reliance on imported gas

The declining production from legacy offshore gas fields in Victoria has heightened the dependence of southern states—primarily Victoria (VIC), New South Wales (NSW), and Tasmania (TAS)—on Queensland’s gas supply. According to Kaushal Ramesh, Vice President, Gas & Liquefied Natural Gas (LNG) Research at Rystad Energy, LNG imports into Australia have become almost inevitable to ensure continuous supply and price stability. Current buffer capacities are lower compared to previous crises, notably the 2022 price surge, making the market increasingly vulnerable to potential future supply disruptions.

The absence of substantial reserve margins leaves little room for error, and any simultaneous supply disruptions or spikes in demand could trigger price volatility similar to previous crises. In this scenario, LNG imports into Australia appear increasingly necessary to mitigate short-term risks associated with domestic production shortfalls.

Political outcomes and infrastructure constraints

Forecasts from Rystad Energy suggest that under the incumbent Labor government, Australia would see a record addition of approximately 7.2 GW annually in combined renewable and gas generation capacity, primarily concentrated in Queensland, Victoria, and NSW. Conversely, if the Liberal-National Party (LNP) prevails, the planned deployment of nuclear power plants is likely to reduce immediate investments in solar and wind projects. The extent of this reduction remains uncertain, but the shift toward nuclear could alter the country’s current energy development trajectory significantly.

Regardless of political outcomes, Australia’s immediate challenge revolves around overcoming significant infrastructure limitations. Delays in delivering critical heavy turbine equipment due to surging international demand are likely to impact Australia’s ability to rapidly expand its energy infrastructure. With tight timelines and high stakes involved, Australia’s upcoming energy policy decisions will shape its capacity to maintain grid stability and manage energy costs, factors of critical importance for both economic stability and national competitiveness.

Amid these challenges, the upcoming electoral choices will influence Australia’s short and long-term energy security. Decisions made in the next electoral cycle will therefore profoundly affect not only the national energy landscape but also Australia’s position in the global energy market.

The Malaysian government plans to increase public investment in natural gas and solar energy to reduce coal dependency while ensuring energy cost stability for households and businesses.
The study by Özlem Onaran and Cem Oyvat highlights structural limits in public climate finance, underscoring the need for closer alignment with social and economic goals to strengthen the efficiency and resilience of public spending.
Oil major ExxonMobil is challenging two California laws requiring disclosure of greenhouse gas emissions and climate risks, arguing that the mandates violate freedom of speech.
The European Court of Human Rights ruled that Norway’s deferral of a climate impact assessment did not breach procedural safeguards under the Convention, upholding the country’s 2016 oil licensing decisions.
Singapore strengthens its energy strategy through public investments in nuclear, regional electricity interconnections and gas infrastructure to secure its long-term supply.
As oil production declines, Gabon is relying on regulatory reforms and large-scale investments to build a new growth framework focused on local transformation and industrialisation.
Cameroon will adopt a customs exemption on industrial equipment related to biofuels starting in 2026, as part of its new energy strategy aimed at regulating a still underdeveloped sector.
Facing a persistent fuel shortage and depleted foreign reserves, the Bolivian parliament has passed an exceptional law allowing private actors to import gasoline, diesel and LPG tax-free for three months.
Ghana aims to secure $16 billion in oil revenues over ten years, but the continued drop in production raises doubts about the sector’s long-term stability.
The government of Kinshasa has signed a memorandum of understanding with Vietnam's Vingroup to develop a 6,300-hectare urban project and modernise mobility through an electric transport network.
ERCOT’s grid adapts to record electricity consumption by relying on the growth of solar, wind and battery storage to maintain system stability.
The French government will raise the energy savings certificate budget by 27% in 2026, leveraging more private funds to support thermal renovation and electric mobility.
Facing opposition criticism, Monique Barbut asserts that France’s energy sovereignty relies on a strategy combining civil nuclear power and renewable energy.
The European Commission is reviving efforts to abolish daylight saving time, supported by several member states, as the energy savings from the practice are now considered negligible.
Rising responses to UNEP’s satellite alerts trigger measurement, reporting and verification clauses; the European Union sets import milestones, Japan strengthens liquefied natural gas traceability; operators and steelmakers adjust budgets and contracts.
The European Commission unveils a seven-point action plan aimed at lowering energy costs, targeting energy-intensive industries and households facing persistently high utility bills.
The European Commission plans to keep energy at the heart of its 2026 agenda, with several structural reforms targeting market security, governance and simplification.
The new Liberal Democratic Party (LDP)–Japan Innovation Party (Nippon Ishin no Kai) axis combines a nuclear restart, targeted fuel tax cuts and energy subsidies, with immediate effects on prices and risk reallocations for operators. —
German authorities have ruled out market abuse by major power producers during sharp price increases caused by low renewable output in late 2024.
A new International Energy Agency report urges Maputo to accelerate energy investment to ensure universal electricity access and support its emerging industry.

All the latest energy news, all the time

Annual subscription

8.25£/month*

*billed annually at 99£/year for the first year then 149,00£/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2£/month*
then 14.90£ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.