Peter Dutton’s flimsy charade is first and foremost a gas plan not a nuclear power plan
(Simon Holmes à Court, The Guardian)
Straight from the Donald Trump playbook the opposition leader left Australia with more questions than answers
Finally, on Wednesday morning Peter Dutton announced his nuclear plan … well, it’s more a vibe than a plan – a flimsy announcement leaving us with more questions than answers.
If there’s any doubt that Dutton has internalised the Trump playbook, here’s an example of how he’s deployed the infamous Steve Bannon technique: “flood the zone with ****”.
The media conference was a stream of falsehoods, empty rhetoric and veiled swipes, deftly delivered with unwavering confidence.
As an energy nerd, there’s a lot I like about nuclear technology, and my long-held interest has led me to visit reactors in three countries. Last year I took a nuclear course at MIT and met nuclear developers, potential customers, innovators and investors, tracing many footsteps of the shadow energy minister, Ted O’Brien.
I strongly believe nuclear power is an important technology – but it has to make sense where it’s used and that requires close questioning. Here are some important questions, and what we know so far.
How to remove the current bans?
Nuclear is banned in Australia by two acts of parliament. Naturally, to repeal the ban the Coalition would need to win back control of the house – a daunting task when they are 21 seats shy of a majority – and control of the Senate, power it hasn’t held since the end of the Howard era.
Once the federal ban is lifted, Dutton needs a plan for lifting state bans in Victoria, New South Wales and Queensland.
The leaders of the Labor governments and their Coalition oppositions in each of these key states have expressed their clear opposition. Dutton rehashed the old quip that you wouldn’t want to stand between a state premier and a bucket of money, indicating that he thinks dangling commonwealth carrots will solve the issue.
They will not be cheap carrots!
Where will the reactors go?
The Coalition has named seven specific locations, two in Queensland, two in New South Wales and one each in Victoria, South Australia and Western Australia, all on sites of retired or soon-to-be-retired coal power stations.
One big problem – the commonwealth doesn’t own any of these sites, and in many cases the owners of the sites have plans to redevelop the sites, such as a $750m battery on the site of the old Liddell power station being built by AGL.
On Wednesday Dutton hinted that if the owners wouldn’t sell the sites, he had legal advice that the commonwealth could compulsorily acquire them. That’ll go down well.
How do we keep the lights on?
Australia’s 19 coal power stations generated 125 TWh of electricity last year. The Australian Energy Market Operator expects all will be retired by 2037. On top of that, our energy demand is expected to increase by more than 230 TWh by 2050. Over the next 25 years we need to build facilities that generate at least 355 TWh every year.
Dutton announced that the Coalition would build five large reactors and two small modular reactors by 2050. This would be about 6.5 GW of new capacity, which at best could be expected to generate 50 TWh a year – less than 15% of the new generation needed.
The Coalition has been quite clear that it wants to see renewable energy development slowed to a crawl. This would leave a massive hole in our energy supply, which could only be filled by extending the life of coal and a massive increase in gas power generation.
This is first and foremost a gas plan, not a nuclear plan.
What will it cost?
Gas is the most expensive form of bulk energy supply in the electricity market … at least until nuclear is available.
Replacing the cheapest form of energy – wind and solar, even including integration costs – with the two most expensive forms can only send energy prices higher.
The Coalition’s announcement is too vague to cost precisely and nobody really knows what SMRs will cost, but a reasonable estimate using assumptions from CSIRO’s GenCost would be in the order of $120bn, or to coin a new unit of money, one-third of an Aukus.
What does this mean for emissions?
An analysis by Solutions for Climate Australia, released before Wednesday’s announcement and which assumes a much more aggressive nuclear build, shows an aggregate increase in emissions by 3.2bn tonnes of carbon dioxide by 2050 – the emissions equivalent of extending the life of our entire coal fleet by 25 years.
While the Coalition has turned its back on Australia’s legislated 2030 target, their talking points say they’re still committed to net zero emissions by 2050. This does not compute. Dutton’s proposal would see high emissions in the electricity sector all the way to 2050 and beyond, blowing our carbon budget and every emissions target along the way.
What if locals object?
For years Coalition members have been running around the country fomenting then amplifying community concern around wind and solar farms. Genuine community consultation, which has sometimes been lacking, is the best antidote to opposition.
Yet the Coalition has made a massive blunder in telling communities exactly where they’ll go before any consultation. Worse, it has adopted a strong-man posture that communities will have to accept that the reactors are in the national interest. It will be fascinating to watch how the Coalition handles local opposition over the coming months.
How will they be built?
With a combination of astronomical costs and zero interest by energy companies, there only ever was one possible owner of a nuclear power station in Australia: the commonwealth government.
One of the biggest challenges will be locking in major contractors. With the high likelihood that a future Labor government would cancel any contracts, no contractor would proceed without very expensive cancellation protection.
When will the reactors come online?
We often hear that a nuclear reactor can be built in eight years. In reality it takes three to four years from signing the contract to completing the civil works to begin ‘construction’, and it would very optimistically take four years to complete site selection, planning, licensing, vendor selection and contracting. Add in the inevitable legal challenges and it’s highly unlikely a reactor could be delivered by 2035 – as Dutton claimed – let alone before the early 2040s.
The newest reactors in the United States took 18 years from announcement to commercial operation, while in the UAE, it took 13 years under an authoritarian regime … and I’m being kind by not mentioning contemporary projects in France, the UK, Finland and Argentina.
Dutton has said he favours the Rolls-Royce SMR, tweeting an artist’s rendering on Wednesday.
These SMRs exist only on paper, yet Dutton wants us to believe he can provide one by 2035. Remember, this is the mob that brought us the NBN and the Snowy 2.0 disaster. This is the team that couldn’t even build commuter car parks.
What about the water and the waste?
I think we can relax a little about water and waste. Yes, nuclear power stations generally require large volumes of water for cooling, but so do coal power stations. By choosing sites with existing access to cooling water, the Coalition has sidestepped this concern.
Public concern around nuclear waste is high, but ultimately the problem is manageable. The waste will be kept on site, likely in dry casks and eventually moved to wherever Australia decides to store its waste from the Aukus program. Nobody has ever been harmed by spent nuclear fuel.
Who will provide disaster insurance?
While serious nuclear accidents are very rare, their costs can be astronomical. The Japan Centre for Economic Research has estimated that total costs related to the 2011 Fukushima Daiichi nuclear accident may reach $350 to 750bn. The only viable solution is for the commonwealth to accept liability.
For a long time the Coalition’s nuclear plan sat beyond the horizon, to be unveiled before the election. But now Dutton’s built a castle and he has to defend it.
Dutton is still learning about nuclear. On Wednesday he said that an SMR would emit only a “coke can” of nuclear waste a year. In reality it would probably produce more than 2,000 times that.
Nuclear energy is complex. He and his team will keep making mistakes. Keith Pitt, a Nationals backbencher told RN Breakfast on the same day that the grid couldn’t handle more than 10% wind and solar power combined. Over the past year the grid has averaged 31% wind and solar.
Some people want to believe there are simple solutions to the complex solutions behind the cost of living crisis, and like his political forebear Tony Abbott, Dutton has a knack for delivering simple messages with cold competence.
But Dutton’s nuclear castle is made of cardboard. Close questioning over the many months until election day will show that behind the costly facade, it’s not so much a nuclear plan, as a plan to give up on our climate targets, turn our back on a clean energy future and burn a lot more gas (and money).
— Simon Holmes à Court is a Director of The Superpower Institute, the Smart Energy Council and convener of Climate 200. Contrary to Coalition belief, he is not a large investor in renewable energy.