A new draft report from Parliament has cast doubt on nuclear energy as a cost-effective solution for Australia’s energy future. After 19 public hearings and testimony from experts, community groups, and government agencies, the report concludes that nuclear power generation is not a good use of taxpayer money.

But why? Let’s break it down.

Nuclear costs more than renewables

The key takeaway from the draft report is that nuclear power is far more expensive to build than renewables. While the cost of solar and wind continues to fall, nuclear remains an expensive option—especially for a country like Australia, which has no existing nuclear power industry.

The report found that the capital cost for building nuclear power plants is estimated at $8,600 per kW for large reactors and $22,700 per kW for small modular reactors, while solar and wind cost between $1,400 and $2,800 per kW - making nuclear something like 3 to 16 times more expensive to build than renewables.

The CSIRO told the committee that, because Australia has never built a nuclear power plant before, it could cost twice as much to construct one here compared to countries with established nuclear industries. Around the world, nuclear projects frequently blow out their budgets. Hinkley Point C in the UK is an estimated $61bn (AUD) over budget - and is expected to open up to 8 years behind schedule. 

There is some disagreement on the numbers: the Smart Energy Council estimated that building nuclear power in Australia could cost $600 billion, while the Liberal Party argues the figure is closer to $120 billion. 

But either way, the investment is massive—especially compared to renewables, which require far less upfront spending and are already delivering cheaper electricity.

Labor MP and committee chair Dan Repacholi summed things up:

“$600 billion of government money is being spent on nuclear energy: it's a pretty hard pill for the public to swallow. It just doesn't pass the pub test."

Higher power bills for households

The draft report also raised concerns about how nuclear could drive up household power bills: nuclear reactors can’t easily adjust their output, which means they could end up forcing cheaper energy sources - like rooftop solar- offline to prevent grid overload. Independent MP Monique Ryan warned that this could lead to power bills increasing by over $665 per year on average, or $972 for a four-person household.

Environmental and safety concerns

Beyond cost, the committee highlighted environmental and safety risks. The chair of the Climate Change Authority, Matt Kean, warned during senate estimates that nuclear power in Australia could lead to massive carbon emissions from construction and operation, calling it a “two billion ton nuclear carbon emission bomb that would be dropped on the economy”. 

Then there’s the issue of nuclear waste disposal—where would Australia store it? And what happens in the event of an emergency? Fallout zones from nuclear accidents could pose serious risks.

What’s next?

The committee will now return to government agencies, including regulators and nuclear safety bodies, to review their findings, and a final report is due in April. 

What do you think?

Thumbnail Credit: Frédéric Paulussen on Unsplash