- Introduction
- On 10 October 2024, the House Select Committee on Nuclear Energy (the Committee) was established by a resolution of appointment that passed the House of Representatives.
- The Committee was appointed to inquire into and report on the consideration of nuclear power generation, including the deployment of small modular reactors, in Australia.
- This interim report provides an overview of the evidence received on two significant issues about the viability of nuclear power generation in Australia that have dominated the evidence the Committee has received:
1The timeframes for the deployment of nuclear power generation in Australia; and
2The cost of the deployment of nuclear power generation in Australia.
1.4This report does not seek to debate the merits of nuclear power as a source of energy. This report does not present the Committee’s final views or recommendations on the above matters, nor does it consider in detail all the evidence provided to the Committee.
1.5Consideration of the viability of nuclear power generation in Australia's future energy mix requires more detailed examination of technical, economic, and social licence considerations regarding:
- waste and water management options and risks;
- safety and risk management for nuclear plants and communities particularly with regard to natural disasters and climate change;
- the health risks for nuclear power reactor communities and workforce;
- land acquisition for nuclear power plant and nuclear waste siting, and the feasibility of transitioning existing energy infrastructure for nuclear power generation and transmission; and
- management options for nuclear fallout in the event of a disaster.
- The Committee is due to table its final report by 30 April 2025.
Context of the inquiry
Key issues
1.7Some of the key issues informing the context of this inquiry are summarised below.
Changes in energy demand, use and supply
1.8Electricity demand around the world is rising due to the electrification of heating, cooling, and transportation and a rise in energy-intensive data centres.
1.9In 2024, the Australian Energy Market Operator (AEMO) released the Integrated System Plan (ISP), outlining a roadmap for the National Electricity Market (NEM) over the next 20 years. The ISP projects that electricity consumption in Australia will nearly double by 2050.
1.10The ISP proposes an Optimal Development Path (ODP) for the ‘Step Change’ scenario for the future of the NEM of, ‘Renewable energy connected by transmission and distribution, firmed with storage and backed up by gas-powered generation [as] the lowest-cost way to supply electricity to homes and businesses as Australia transitions to a net zero economy’. The ODP has an annualised capital cost of $122 billion to 2050.
1.11Under the ISP's 'Step Change' scenario, coal generation will be reduced by 46% by 2030 and phased out by 2038 (see Figure 1.1). The ISP states ‘Australia’s energy system is rapidly changing, and the transition is well underway,’ but that ‘investment is needed urgently’.
Figure 1.1Key facts and figures for the ‘Step Change’ scenario
Source: AEMO 2024 Integrated System Plan Overview p. [3].
Climate change and the pursuit of Australia’s climate commitments
1.12Australia’s weather and climate are changing due to a warming global climate caused by greenhouse gas emissions. To address this threat, Australia has signed the Paris Agreement, which aims to limit further global warming.
1.13Emissions reduction is a key strategy to mitigate environmental, health, and economic risks from climate change. The Australian Government has committed to reducing net greenhouse gas emissions to 43% below 2005 levels by 2030 and to zero by 2050 through the Climate Change Act 2022 (Cth).
1.14Supporting this commitment is the transformation of Australia’s energy market under the ISP, including the decommissioning of coal plants by 2038 and the rollout of renewables and supporting infrastructure. The Australian Government has pledged an 82% renewable energy mix by 2030, with significant investments in green energy projects. Additionally, a guiding ‘Net Zero Plan’ is being developed, alongside setting an ambitious and achievable 2035 emissions reduction target.
Cost of living pressures
1.15Many Australians are feeling the strain from cost of living pressures. From September 2022 to November 2024 a Senate Select Committee inquired into the cost of living, noting that temporary economic shocks from COVID-19, the invasion of Ukraine, and 2022 weather events exacerbated the situation.
1.16The Committee noted high inflation and the housing crisis have created further strain. The inquiry also explored energy costs, noting significant price rises affecting both households and businesses.
1.17Prime Minister the Hon Anthony Albanese MP has stated that delivering cost of living relief is the Australian Government's ‘number one priority’, with commitments to reduce taxes, provide energy bill relief, and increase wages.
Recent announcements about nuclear energy
1.18Nuclear power has gained attention from recent international and Australian announcements. As of 31 December 2023, the International Atomic Energy Agency reported that 413 nuclear reactors were operating in 31 countries and Taiwan, providing about 10% of the world's electricity. At COP28, 25 countries pledged to triple global nuclear capacity by 2050.
1.19In 2024, major technology companies including Microsoft, Google, and Amazon announced plans to explore or invest in nuclear energy, including small modular reactors, for their data centres. The Electric Power Research Institute projects data centres could consume up to 9% of US electricity by 2030, up from 4% in 2023’.
1.20On 19 June 2024, the Federal Coalition (the Coalition) announced a proposal to build nuclear reactors on retiring or retired coal sites across several states were they to win the 2025 federal election. They proposed to develop two initial projects using small modular or modern larger reactors, expected to produce electricity by 2035 or 2037 respectively.
1.21The Coalition proposed that the reactors would be government-owned but built and operated in partnership with experienced nuclear companies. The stated objective of the proposal is to reduce electricity prices and emissions while complementing renewable energy and gas.
Current legal status and previous inquiries into nuclear power generation in Australia
1.22Australia has a longstanding bipartisan moratorium on nuclear power, with legislated prohibitions in place at state and federal levels. The Commonwealth Australian Radiation Protection and Nuclear Safety Act 1998 (ARPANS Act) and Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) prohibit approval being granted for the construction or operation of nuclear power plants. These laws ‘effectively preclude the implementation of any nuclear power program in Australia’.
1.23Prohibitions are also in effect across the Australian states and territories. New South Wales, Victoria and Queensland have similar prohibitions to the Commonwealth. In Western Australia and South Australia, there are prohibitions against the ‘construction and operation of nuclear waste storage and disposal facilities, including the importation and transportation of nuclear waste’.
1.24This inquiry follows a number of previous state and federal inquiries into nuclear power in the last decade, including:
- South Australian state government Nuclear Fuel Cycle Royal Commission 2015-2016.
- Federal Standing Committee on Environment and Energy Inquiry into the prerequisites for nuclear energy in Australia 2019.
- Victorian state government Environment and Planning Committee Inquiry into nuclear prohibition in 2019-2020.
- Federal Environment and Communications Legislation Committee Environment and Other Legislation Amendment (Removing Nuclear Energy Prohibitions) Bill 2022, 2022.
Conduct of the inquiry
1.25A media release announcing the inquiry was issued on 17 October 2024, calling for submissions that addressed the terms of the resolution of appointment by 15 November 2024.
1.26At the time of publication of this report, the Committee has received 858 submissions and 58 supplementary submissions. A list of submissions published to date is available at Appendix A.
1.27In addition, the Committee received 142 form letters and campaign emails in favour of the deployment of nuclear power generation in Australia, and 5250 form letter and campaign emails that were critical of nuclear power generation in Australia. Samples of the form letters were published as submission to the inquiry. The Committee’ process for managing them is outlined below.
1.28The Committee also received 94 short statements under 250 words relating to the inquiry.
1.29To date, the Committee has held 19 public hearings in capital cities and in locations identified in the Coalition’s nuclear energy policy proposal. A list of hearing locations and witnesses who gave evidence at public hearings is available at Appendix B. Submissions and transcripts of the public hearings can be found on the inquiry website.
1.30In this report, references toCommittee Hansardare to both proof and official transcripts. Page numbers may vary between proof and official transcripts.
1.31The Committee also conducted two site visits:
- Callide Power Station and Mount Murchison on Tuesday, 12 November 2024.
- Tarong Power Station on Thursday, 14 November 2024.
Processing the evidence
1.32The Committee received a significant volume of contributions related to the inquiry. The Committee resolved to manage the submissions as follows.
1.33Short statements: Separate to form letters and campaign emails, the Committee received 54 contributions to the inquiry comprising of 250 words or less. The Committee resolved to note these contributions but not publish them individually as submissions. While the Committee did not set a word limit for its submissions, a review of the short statements showed that they generally echoed concerns already raised or submitted.
1.34Form letters and campaign emails: refer to submissions that largely use the same template or wording, save for some paragraphs or free text areas that can be personalised by the submitter. Form letters are usually distributed by interest groups or organisations for people to copy, edit, and submit, or prepare according to writing instructions provided by the interest group.
1.35The inquiry received form letters and campaign emails from the following groups:
- Do Gooder (2838 received)
- GetUp (1879 received), in addition to a submission that contained 8,936 signatories
- Environment Victoria (533 received); and
- WePlanet (142 received).
- The Committee resolved to publish samples of the form letter templates. Form letters that had more than 250 words of unique text and met the other requirements for being considered a submission were published as submissions to the inquiry and are included in the total number of submissions.
Acknowledgements
1.37The Committee thanks the individuals and organisations who have provided evidence to the inquiry to date. The Committee heard from a range of stakeholders including government agencies; climate and environment groups; nuclear advocacy groups; energy experts; industry and union representatives; First Nations organisations and peoples; and local councils, businesses and community members.
Structure of report
1.38This interim report comprises three chapters:
- Chapter 1 provides information relating to the Committee and its inquiry, the context of the inquiry, and the purpose and structure of this interim report.
- Chapter 2 provides an overview of the key issues raised in evidence considered by the Committee to date regarding the milestones and timeframes for the deployment of nuclear power in Australia and explores factors that would affect the Australian deployment timeframe that were consistently raised by witnesses and in submissions. It then considers views provided by participants in the inquiry about the implications of the likely timeframes for nuclear deployment in Australia.
- Chapter 3 sets out the key issues raised in evidence regarding the potential cost for deploying nuclear power in Australia, the history of blowouts in cost for nuclear energy projects globally, and the appetite for private investment in nuclear energy in Australia and globally.