In The Australian today:Labor’snuclear figures are incorrect, a...

In The Australian today:

Labor’snuclear figures are incorrect, a former senior US official insists

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The financial cost of usingnuclear power to replace coal and assist Australia to meet its net zero carbonemissions aspirations without substantial societal upheaval is much smallerthan federal Labor claims, a former senior US government official says.

Federal energy minister ChrisBowen said using nuclear as, proposed by Opposition Leader Peter Dutton, wouldcost $387bn, but Westinghouse senior vice-president Rita Baranwal – a formerassistant secretary for nuclear energy at the US Department of Energy – saidthe figures were incorrect and misleading.

“I only have three engineeringdegrees and that math doesn’t make sense to me,” Ms Baranwal told TheAustralian Financial Review Energy & Climate Summit.

Ms Baranwal said Westinghouse’sown small modular reactor cost about US$1bn ($1.58bn) for a 300MW facility,which would be used to supplement renewable energy as a baseload generator.

Factoring in additional costsfor transmission upgrades, nuclear power could be a significant contributor tosupporting renewables for far less than $387bn, Ms Baranwal said.

Mr Bowen, using analysis fromthe Commonwealth Scientific and Industrial Research Organisation (CSIRO), saidnuclear power would cost approximately $6896 per kilowatt-hour.

Ms Baranwal’s comments arelikely to reinvigorate the Coalition’s attack on Labor. It could also stokeanxiety within Australia’s energy industry which fears a muddying of governmentpolicy as billions of dollars of investment decisions have been predicated onthe country having renewable energy generate more than 80 per cent of thecountry’s electricity by 2030.

Australia is struggling todevelop sufficient renewable energy sources to back up vast amounts of solarand wind generation which has been earmarked to replace the capacity of coal.

Energy experts said Australiamust move to rapidly expand development of large-scale batteries and pumpedhydro, or the country would be susceptible to price surges and even blackoutsduring periods when the sun is not shining or the wind is not blowing –so-called renewable energy droughts.

Coal-fired power stations, whichstill provide more than 60 per cent of Australia’s electricity, generatethroughout the day. But the country’s energy market operator expects two thirdsof the traditional generators to have been retired in the next 10 years,leaving the country scrambling to seek new sources of power.

A rapid exit of coal is likelyto reshape many coal communities where the fossil fuel has been the majoremployer.

Undercutting the nuclearadvocacy, however, Ms Baranwal said that even if work began immediately toinstall a small modular reactor at coal sites set for closure, it would stilltake a decade before electricity would be generated.

Before any work could begin,Australia would need to change the law and this would likely stoke a fiercedebate that would drag on.

Ms Baranwal said the decade-longtimetable was largely driven by regulatory restrictions. She defended thesafety record of the fuel source and rejected concerns about substantialnuclear waste issues.

Much of Australia’s so-calledrenewable energy storage woes could be eradicated if the eagerly anticipatedSnowy Hydro 2.0 project were completed on schedule.

The 2000-megawatt pumped hydrostorage project in NSW is a key pillar of Australia’s plan to wean its $2.5trillion economy off fossil fuels, but it has been beset by delays and costblowouts.

But Australia is increasinglydependent on Snowy Hydro 2.0, which is so large that once complete it would beable to provide enough electricity to run large swathes of the grid on its ownfor about a week.

Snowy is now expected to be onlinein 2028, but it is pushing at the boundaries of technological feasibility andenergy industry executives fear further delays.

Australia’s energy grid facessubstantial change by 2028 as major generators such as Origin Energy’s Eraringcoal power station and AGL Energy’s Yallourn coal generator are likely to beout of the system.

Gas could be used as a so-calledpeaker, with generators fired up when there are renewable energy droughts. ButAustralia faces a looming eastern seaboard shortage and efforts to establishnew supplies are struggling to win community and regulatory support, whileopponents have won a spate of legal rulings designed to inhibit newdevelopments.

Australia is one of the world’slargest LNG exporters and could be forced to ship gas from the west coast orNT, though such import terminals remain uneconomical at present.

COLIN PACKHAM

BUSINESS REPORTER