Latest news with #PaulGraham
The Advertiser
3 days ago
- Business
- The Advertiser
Why wind and solar remain the cheapest energy options
Electricity generated by solar and on-shore wind projects remains the cheapest option for Australia, while small nuclear reactors are the most expensive, the latest report from the CSIRO and energy market regulator has found. The GenCost 2024-25 report, produced at CSIRO's Newcastle Energy Centre, argues that Australia's electricity network relies on a mix of technologies, because no single option can deliver all the capabilities required for a reliable, secure and flexible supply. It also found that rising construction costs and supply chain constraints for some technologies remain a challenge. CSIRO's chief energy economist and GenCost lead author Paul Graham said fewer submissions were received during this year's consultation process than previously, which reflected a broader range of perspectives. "Most input we received focused on technologies already in development or under construction, such as pumped hydro, wind, solar photovoltaics, gas, solar thermal and electrolysers," he said. "Following consultation, cost projections for most technologies have been revised upwards, despite continued declines in solar PV and battery costs. Key drivers of these changes include: Overall, the report found renewables (wind and solar) backed by storage and transmission remained the lowest-cost new-build electricity generation technologies. However, it found that offshore wind remains a higher cost option to on-shore wind, even though transmission costs tended to be lower. "Offshore wind can be built much nearer to Australia's major cities, which means they can avoid the higher transmission costs faced by onshore projects," Mr Graham said. "However, overall, offshore wind generation is generally higher cost than onshore wind. Offshore wind runs the risk of a first-of-a-kind premium, given Australia's workforce does not have any experience building this type of project." After renewables, gas with carbon capture and storage (CCS) and large-scale nuclear were the next lowest cost options. As neither is currently deployed for electricity generation in Australia, they could be subject to longer lead times and first-of-a-kind premiums. Small modular nuclear reactors (SMRs) remain the highest cost option, even with new data from Canada's Darlington project. This represented the first commercial-scale benchmark from a western country and fell within the range previously projected by GenCost. Climate Change and Energy Chris Bowen said the GenCost report supported the government's net-zero policy. "Australia has the best wind and sun to power our future and we're harnessing it to secure the better, fairer energy system our nation deserves," he said. "The latest GenCost confirms what our energy experts have been saying for a long time: the most affordable path to deliver reliable energy in future is with new renewable generation and storage, firmed by gas and pumped hydro. This year's report calculated the potential cost advantages of nuclear technology's longer operational life for the first time. "Our finding is that there are no unique cost advantages arising from nuclear technology's long operational life. Similar cost savings are achievable from shorter lived technologies, even accounting for the fact that shorter lived technologies need to be built twice to achieve the same operational life,' the report said. The CSIRO's director of energy, Dr Dietmar Tourbier, said GenCost is Australia's most comprehensive source of electricity generation cost projections, supporting evidence-based decisions across the sector. "We refresh forecasts annually using the best available data at the time to ensure GenCost reflects current market conditions and remains a trusted benchmark," he said. "By drawing on expert input from across the electricity sector, GenCost reinforces CSIRO's role as a neutral source of scientific insight to help guide Australia's energy transition." Electricity generated by solar and on-shore wind projects remains the cheapest option for Australia, while small nuclear reactors are the most expensive, the latest report from the CSIRO and energy market regulator has found. The GenCost 2024-25 report, produced at CSIRO's Newcastle Energy Centre, argues that Australia's electricity network relies on a mix of technologies, because no single option can deliver all the capabilities required for a reliable, secure and flexible supply. It also found that rising construction costs and supply chain constraints for some technologies remain a challenge. CSIRO's chief energy economist and GenCost lead author Paul Graham said fewer submissions were received during this year's consultation process than previously, which reflected a broader range of perspectives. "Most input we received focused on technologies already in development or under construction, such as pumped hydro, wind, solar photovoltaics, gas, solar thermal and electrolysers," he said. "Following consultation, cost projections for most technologies have been revised upwards, despite continued declines in solar PV and battery costs. Key drivers of these changes include: Overall, the report found renewables (wind and solar) backed by storage and transmission remained the lowest-cost new-build electricity generation technologies. However, it found that offshore wind remains a higher cost option to on-shore wind, even though transmission costs tended to be lower. "Offshore wind can be built much nearer to Australia's major cities, which means they can avoid the higher transmission costs faced by onshore projects," Mr Graham said. "However, overall, offshore wind generation is generally higher cost than onshore wind. Offshore wind runs the risk of a first-of-a-kind premium, given Australia's workforce does not have any experience building this type of project." After renewables, gas with carbon capture and storage (CCS) and large-scale nuclear were the next lowest cost options. As neither is currently deployed for electricity generation in Australia, they could be subject to longer lead times and first-of-a-kind premiums. Small modular nuclear reactors (SMRs) remain the highest cost option, even with new data from Canada's Darlington project. This represented the first commercial-scale benchmark from a western country and fell within the range previously projected by GenCost. Climate Change and Energy Chris Bowen said the GenCost report supported the government's net-zero policy. "Australia has the best wind and sun to power our future and we're harnessing it to secure the better, fairer energy system our nation deserves," he said. "The latest GenCost confirms what our energy experts have been saying for a long time: the most affordable path to deliver reliable energy in future is with new renewable generation and storage, firmed by gas and pumped hydro. This year's report calculated the potential cost advantages of nuclear technology's longer operational life for the first time. "Our finding is that there are no unique cost advantages arising from nuclear technology's long operational life. Similar cost savings are achievable from shorter lived technologies, even accounting for the fact that shorter lived technologies need to be built twice to achieve the same operational life,' the report said. The CSIRO's director of energy, Dr Dietmar Tourbier, said GenCost is Australia's most comprehensive source of electricity generation cost projections, supporting evidence-based decisions across the sector. "We refresh forecasts annually using the best available data at the time to ensure GenCost reflects current market conditions and remains a trusted benchmark," he said. "By drawing on expert input from across the electricity sector, GenCost reinforces CSIRO's role as a neutral source of scientific insight to help guide Australia's energy transition." Electricity generated by solar and on-shore wind projects remains the cheapest option for Australia, while small nuclear reactors are the most expensive, the latest report from the CSIRO and energy market regulator has found. The GenCost 2024-25 report, produced at CSIRO's Newcastle Energy Centre, argues that Australia's electricity network relies on a mix of technologies, because no single option can deliver all the capabilities required for a reliable, secure and flexible supply. It also found that rising construction costs and supply chain constraints for some technologies remain a challenge. CSIRO's chief energy economist and GenCost lead author Paul Graham said fewer submissions were received during this year's consultation process than previously, which reflected a broader range of perspectives. "Most input we received focused on technologies already in development or under construction, such as pumped hydro, wind, solar photovoltaics, gas, solar thermal and electrolysers," he said. "Following consultation, cost projections for most technologies have been revised upwards, despite continued declines in solar PV and battery costs. Key drivers of these changes include: Overall, the report found renewables (wind and solar) backed by storage and transmission remained the lowest-cost new-build electricity generation technologies. However, it found that offshore wind remains a higher cost option to on-shore wind, even though transmission costs tended to be lower. "Offshore wind can be built much nearer to Australia's major cities, which means they can avoid the higher transmission costs faced by onshore projects," Mr Graham said. "However, overall, offshore wind generation is generally higher cost than onshore wind. Offshore wind runs the risk of a first-of-a-kind premium, given Australia's workforce does not have any experience building this type of project." After renewables, gas with carbon capture and storage (CCS) and large-scale nuclear were the next lowest cost options. As neither is currently deployed for electricity generation in Australia, they could be subject to longer lead times and first-of-a-kind premiums. Small modular nuclear reactors (SMRs) remain the highest cost option, even with new data from Canada's Darlington project. This represented the first commercial-scale benchmark from a western country and fell within the range previously projected by GenCost. Climate Change and Energy Chris Bowen said the GenCost report supported the government's net-zero policy. "Australia has the best wind and sun to power our future and we're harnessing it to secure the better, fairer energy system our nation deserves," he said. "The latest GenCost confirms what our energy experts have been saying for a long time: the most affordable path to deliver reliable energy in future is with new renewable generation and storage, firmed by gas and pumped hydro. This year's report calculated the potential cost advantages of nuclear technology's longer operational life for the first time. "Our finding is that there are no unique cost advantages arising from nuclear technology's long operational life. Similar cost savings are achievable from shorter lived technologies, even accounting for the fact that shorter lived technologies need to be built twice to achieve the same operational life,' the report said. The CSIRO's director of energy, Dr Dietmar Tourbier, said GenCost is Australia's most comprehensive source of electricity generation cost projections, supporting evidence-based decisions across the sector. "We refresh forecasts annually using the best available data at the time to ensure GenCost reflects current market conditions and remains a trusted benchmark," he said. "By drawing on expert input from across the electricity sector, GenCost reinforces CSIRO's role as a neutral source of scientific insight to help guide Australia's energy transition." Electricity generated by solar and on-shore wind projects remains the cheapest option for Australia, while small nuclear reactors are the most expensive, the latest report from the CSIRO and energy market regulator has found. The GenCost 2024-25 report, produced at CSIRO's Newcastle Energy Centre, argues that Australia's electricity network relies on a mix of technologies, because no single option can deliver all the capabilities required for a reliable, secure and flexible supply. It also found that rising construction costs and supply chain constraints for some technologies remain a challenge. CSIRO's chief energy economist and GenCost lead author Paul Graham said fewer submissions were received during this year's consultation process than previously, which reflected a broader range of perspectives. "Most input we received focused on technologies already in development or under construction, such as pumped hydro, wind, solar photovoltaics, gas, solar thermal and electrolysers," he said. "Following consultation, cost projections for most technologies have been revised upwards, despite continued declines in solar PV and battery costs. Key drivers of these changes include: Overall, the report found renewables (wind and solar) backed by storage and transmission remained the lowest-cost new-build electricity generation technologies. However, it found that offshore wind remains a higher cost option to on-shore wind, even though transmission costs tended to be lower. "Offshore wind can be built much nearer to Australia's major cities, which means they can avoid the higher transmission costs faced by onshore projects," Mr Graham said. "However, overall, offshore wind generation is generally higher cost than onshore wind. Offshore wind runs the risk of a first-of-a-kind premium, given Australia's workforce does not have any experience building this type of project." After renewables, gas with carbon capture and storage (CCS) and large-scale nuclear were the next lowest cost options. As neither is currently deployed for electricity generation in Australia, they could be subject to longer lead times and first-of-a-kind premiums. Small modular nuclear reactors (SMRs) remain the highest cost option, even with new data from Canada's Darlington project. This represented the first commercial-scale benchmark from a western country and fell within the range previously projected by GenCost. Climate Change and Energy Chris Bowen said the GenCost report supported the government's net-zero policy. "Australia has the best wind and sun to power our future and we're harnessing it to secure the better, fairer energy system our nation deserves," he said. "The latest GenCost confirms what our energy experts have been saying for a long time: the most affordable path to deliver reliable energy in future is with new renewable generation and storage, firmed by gas and pumped hydro. This year's report calculated the potential cost advantages of nuclear technology's longer operational life for the first time. "Our finding is that there are no unique cost advantages arising from nuclear technology's long operational life. Similar cost savings are achievable from shorter lived technologies, even accounting for the fact that shorter lived technologies need to be built twice to achieve the same operational life,' the report said. The CSIRO's director of energy, Dr Dietmar Tourbier, said GenCost is Australia's most comprehensive source of electricity generation cost projections, supporting evidence-based decisions across the sector. "We refresh forecasts annually using the best available data at the time to ensure GenCost reflects current market conditions and remains a trusted benchmark," he said. "By drawing on expert input from across the electricity sector, GenCost reinforces CSIRO's role as a neutral source of scientific insight to help guide Australia's energy transition."
ABC News
3 days ago
- Business
- ABC News
Renewables cheapest energy option: CSIRO
Renewable's remain the lowest-cost electricity generation technology in Australia, but not by much, according to a new report out today. The CSIRO has released it's final GenCost report finding renewable's were cheaper when it comes to new builds and nuclear small modular reactors are the most costly form of energy generation. ABC NewsRadio's Sarah Morice spoke with Paul Graham, CSIRO's Chief Energy Economist and GenCost lead author. He says there is only a few dollars difference in the cost.
The Advertiser
3 days ago
- Business
- The Advertiser
All energy costs rise but small nuclear most reactive
Next-generation nuclear reactors are the most expensive of all energy-producing technologies, a report has found, and would significantly increase electricity prices in Australia. Establishing a large-scale nuclear power plant for the first time would also require more than double the typical costs, and estimates for wind projects had inflated by four per cent due to unforeseen requirements. The CSIRO, Australia's national science agency, released its GenCost report on Tuesday, revealing rising construction and finance costs would push up prices for energy projects of all kinds in the coming years. The findings come after a heated debate about introducing nuclear power to Australia and after members of the federal coalition questioned the nation's reliance on renewable energy projects to achieve net zero by 2050. The final GenCost report for 2024-2025 analysed the cost of several energy-generating technologies, including variations of coal, gas, nuclear, solar and wind projects. Renewable technology continued to provide the cheapest energy generation, the report's lead author and CSIRO chief energy economist Paul Graham said. "We're still finding that solar PV and wind with firming is the lowest-cost, new build low-emission technology," he told AAP. "In second place is gas with (carbon capture storage) ... then large-scale nuclear, black coal with CCS, then the small modular reactors." Small modular nuclear reactors proved the most expensive technology of the eight options by a large margin, with the report basing its costs on Canada's Darlington nuclear project, announced in May. The 1200-megawatt development is estimated to cost $23.2 billion and will be the first commercial small modular reactor built in a Western country. The new reactors produce one-third the power of typical nuclear reactors and can be built on sites not suitable for larger plants, but have only been built in China and Russia. "This is a big deal for Canada - it's their first nuclear build in 30 years," Mr Graham said. "It's not just about meeting electricity demand ... they've said a few things that indicate they're trying to build a nuclear SMR industry and export the technology." In addition to the cost of different technologies, the report estimated "premiums" for establishing first-of-a-kind energy projects, with the first large-scale nuclear project expected to command 120 per cent more and the first offshore wind development expected to cost an extra 63 per cent. The cost of wind projects also grew by four per cent as researchers factored in building work camps to accommodate remote employees, and capital financing costs rose by one per cent. Developing energy projects was also expected to cost between six and 20 per cent more by 2050, the report found, due to the rising price of materials such as cement and wages, as detailed in a report by Oxford Economics Australia. Findings from the CSIRO report would help inform the design of future energy infrastructure, Australian Energy Market Operator system design executive general manager Merryn York said. "We'll use the capital costs for generation and storage from GenCost in the upcoming Draft Integrated System Plan in December," she said. Nuclear technology is banned as an energy source in Australia, which has a target of achieving 82 per cent renewable energy in the national grid by 2030 and reaching net zero by 2050. Next-generation nuclear reactors are the most expensive of all energy-producing technologies, a report has found, and would significantly increase electricity prices in Australia. Establishing a large-scale nuclear power plant for the first time would also require more than double the typical costs, and estimates for wind projects had inflated by four per cent due to unforeseen requirements. The CSIRO, Australia's national science agency, released its GenCost report on Tuesday, revealing rising construction and finance costs would push up prices for energy projects of all kinds in the coming years. The findings come after a heated debate about introducing nuclear power to Australia and after members of the federal coalition questioned the nation's reliance on renewable energy projects to achieve net zero by 2050. The final GenCost report for 2024-2025 analysed the cost of several energy-generating technologies, including variations of coal, gas, nuclear, solar and wind projects. Renewable technology continued to provide the cheapest energy generation, the report's lead author and CSIRO chief energy economist Paul Graham said. "We're still finding that solar PV and wind with firming is the lowest-cost, new build low-emission technology," he told AAP. "In second place is gas with (carbon capture storage) ... then large-scale nuclear, black coal with CCS, then the small modular reactors." Small modular nuclear reactors proved the most expensive technology of the eight options by a large margin, with the report basing its costs on Canada's Darlington nuclear project, announced in May. The 1200-megawatt development is estimated to cost $23.2 billion and will be the first commercial small modular reactor built in a Western country. The new reactors produce one-third the power of typical nuclear reactors and can be built on sites not suitable for larger plants, but have only been built in China and Russia. "This is a big deal for Canada - it's their first nuclear build in 30 years," Mr Graham said. "It's not just about meeting electricity demand ... they've said a few things that indicate they're trying to build a nuclear SMR industry and export the technology." In addition to the cost of different technologies, the report estimated "premiums" for establishing first-of-a-kind energy projects, with the first large-scale nuclear project expected to command 120 per cent more and the first offshore wind development expected to cost an extra 63 per cent. The cost of wind projects also grew by four per cent as researchers factored in building work camps to accommodate remote employees, and capital financing costs rose by one per cent. Developing energy projects was also expected to cost between six and 20 per cent more by 2050, the report found, due to the rising price of materials such as cement and wages, as detailed in a report by Oxford Economics Australia. Findings from the CSIRO report would help inform the design of future energy infrastructure, Australian Energy Market Operator system design executive general manager Merryn York said. "We'll use the capital costs for generation and storage from GenCost in the upcoming Draft Integrated System Plan in December," she said. Nuclear technology is banned as an energy source in Australia, which has a target of achieving 82 per cent renewable energy in the national grid by 2030 and reaching net zero by 2050. Next-generation nuclear reactors are the most expensive of all energy-producing technologies, a report has found, and would significantly increase electricity prices in Australia. Establishing a large-scale nuclear power plant for the first time would also require more than double the typical costs, and estimates for wind projects had inflated by four per cent due to unforeseen requirements. The CSIRO, Australia's national science agency, released its GenCost report on Tuesday, revealing rising construction and finance costs would push up prices for energy projects of all kinds in the coming years. The findings come after a heated debate about introducing nuclear power to Australia and after members of the federal coalition questioned the nation's reliance on renewable energy projects to achieve net zero by 2050. The final GenCost report for 2024-2025 analysed the cost of several energy-generating technologies, including variations of coal, gas, nuclear, solar and wind projects. Renewable technology continued to provide the cheapest energy generation, the report's lead author and CSIRO chief energy economist Paul Graham said. "We're still finding that solar PV and wind with firming is the lowest-cost, new build low-emission technology," he told AAP. "In second place is gas with (carbon capture storage) ... then large-scale nuclear, black coal with CCS, then the small modular reactors." Small modular nuclear reactors proved the most expensive technology of the eight options by a large margin, with the report basing its costs on Canada's Darlington nuclear project, announced in May. The 1200-megawatt development is estimated to cost $23.2 billion and will be the first commercial small modular reactor built in a Western country. The new reactors produce one-third the power of typical nuclear reactors and can be built on sites not suitable for larger plants, but have only been built in China and Russia. "This is a big deal for Canada - it's their first nuclear build in 30 years," Mr Graham said. "It's not just about meeting electricity demand ... they've said a few things that indicate they're trying to build a nuclear SMR industry and export the technology." In addition to the cost of different technologies, the report estimated "premiums" for establishing first-of-a-kind energy projects, with the first large-scale nuclear project expected to command 120 per cent more and the first offshore wind development expected to cost an extra 63 per cent. The cost of wind projects also grew by four per cent as researchers factored in building work camps to accommodate remote employees, and capital financing costs rose by one per cent. Developing energy projects was also expected to cost between six and 20 per cent more by 2050, the report found, due to the rising price of materials such as cement and wages, as detailed in a report by Oxford Economics Australia. Findings from the CSIRO report would help inform the design of future energy infrastructure, Australian Energy Market Operator system design executive general manager Merryn York said. "We'll use the capital costs for generation and storage from GenCost in the upcoming Draft Integrated System Plan in December," she said. Nuclear technology is banned as an energy source in Australia, which has a target of achieving 82 per cent renewable energy in the national grid by 2030 and reaching net zero by 2050. Next-generation nuclear reactors are the most expensive of all energy-producing technologies, a report has found, and would significantly increase electricity prices in Australia. Establishing a large-scale nuclear power plant for the first time would also require more than double the typical costs, and estimates for wind projects had inflated by four per cent due to unforeseen requirements. The CSIRO, Australia's national science agency, released its GenCost report on Tuesday, revealing rising construction and finance costs would push up prices for energy projects of all kinds in the coming years. The findings come after a heated debate about introducing nuclear power to Australia and after members of the federal coalition questioned the nation's reliance on renewable energy projects to achieve net zero by 2050. The final GenCost report for 2024-2025 analysed the cost of several energy-generating technologies, including variations of coal, gas, nuclear, solar and wind projects. Renewable technology continued to provide the cheapest energy generation, the report's lead author and CSIRO chief energy economist Paul Graham said. "We're still finding that solar PV and wind with firming is the lowest-cost, new build low-emission technology," he told AAP. "In second place is gas with (carbon capture storage) ... then large-scale nuclear, black coal with CCS, then the small modular reactors." Small modular nuclear reactors proved the most expensive technology of the eight options by a large margin, with the report basing its costs on Canada's Darlington nuclear project, announced in May. The 1200-megawatt development is estimated to cost $23.2 billion and will be the first commercial small modular reactor built in a Western country. The new reactors produce one-third the power of typical nuclear reactors and can be built on sites not suitable for larger plants, but have only been built in China and Russia. "This is a big deal for Canada - it's their first nuclear build in 30 years," Mr Graham said. "It's not just about meeting electricity demand ... they've said a few things that indicate they're trying to build a nuclear SMR industry and export the technology." In addition to the cost of different technologies, the report estimated "premiums" for establishing first-of-a-kind energy projects, with the first large-scale nuclear project expected to command 120 per cent more and the first offshore wind development expected to cost an extra 63 per cent. The cost of wind projects also grew by four per cent as researchers factored in building work camps to accommodate remote employees, and capital financing costs rose by one per cent. Developing energy projects was also expected to cost between six and 20 per cent more by 2050, the report found, due to the rising price of materials such as cement and wages, as detailed in a report by Oxford Economics Australia. Findings from the CSIRO report would help inform the design of future energy infrastructure, Australian Energy Market Operator system design executive general manager Merryn York said. "We'll use the capital costs for generation and storage from GenCost in the upcoming Draft Integrated System Plan in December," she said. Nuclear technology is banned as an energy source in Australia, which has a target of achieving 82 per cent renewable energy in the national grid by 2030 and reaching net zero by 2050.
Perth Now
3 days ago
- Business
- Perth Now
All energy costs rise but small nuclear most reactive
Next-generation nuclear reactors are the most expensive of all energy-producing technologies, a report has found, and would significantly increase electricity prices in Australia. Establishing a large-scale nuclear power plant for the first time would also require more than double the typical costs, and estimates for wind projects had inflated by four per cent due to unforeseen requirements. The CSIRO, Australia's national science agency, released its GenCost report on Tuesday, revealing rising construction and finance costs would push up prices for energy projects of all kinds in the coming years. The findings come after a heated debate about introducing nuclear power to Australia and after members of the federal coalition questioned the nation's reliance on renewable energy projects to achieve net zero by 2050. The final GenCost report for 2024-2025 analysed the cost of several energy-generating technologies, including variations of coal, gas, nuclear, solar and wind projects. Renewable technology continued to provide the cheapest energy generation, the report's lead author and CSIRO chief energy economist Paul Graham said. "We're still finding that solar PV and wind with firming is the lowest-cost, new build low-emission technology," he told AAP. "In second place is gas with (carbon capture storage) ... then large-scale nuclear, black coal with CCS, then the small modular reactors." Small modular nuclear reactors proved the most expensive technology of the eight options by a large margin, with the report basing its costs on Canada's Darlington nuclear project, announced in May. The 1200-megawatt development is estimated to cost $23.2 billion and will be the first commercial small modular reactor built in a Western country. The new reactors produce one-third the power of typical nuclear reactors and can be built on sites not suitable for larger plants, but have only been built in China and Russia. "This is a big deal for Canada - it's their first nuclear build in 30 years," Mr Graham said. "It's not just about meeting electricity demand ... they've said a few things that indicate they're trying to build a nuclear SMR industry and export the technology." In addition to the cost of different technologies, the report estimated "premiums" for establishing first-of-a-kind energy projects, with the first large-scale nuclear project expected to command 120 per cent more and the first offshore wind development expected to cost an extra 63 per cent. The cost of wind projects also grew by four per cent as researchers factored in building work camps to accommodate remote employees, and capital financing costs rose by one per cent. Developing energy projects was also expected to cost between six and 20 per cent more by 2050, the report found, due to the rising price of materials such as cement and wages, as detailed in a report by Oxford Economics Australia. Findings from the CSIRO report would help inform the design of future energy infrastructure, Australian Energy Market Operator system design executive general manager Merryn York said. "We'll use the capital costs for generation and storage from GenCost in the upcoming Draft Integrated System Plan in December," she said. Nuclear technology is banned as an energy source in Australia, which has a target of achieving 82 per cent renewable energy in the national grid by 2030 and reaching net zero by 2050.
West Australian
3 days ago
- Business
- West Australian
All energy costs rise but small nuclear most reactive
Next-generation nuclear reactors are the most expensive of all energy-producing technologies, a report has found, and would significantly increase electricity prices in Australia. Establishing a large-scale nuclear power plant for the first time would also require more than double the typical costs, and estimates for wind projects had inflated by four per cent due to unforeseen requirements. The CSIRO, Australia's national science agency, released its GenCost report on Tuesday, revealing rising construction and finance costs would push up prices for energy projects of all kinds in the coming years. The findings come after a heated debate about introducing nuclear power to Australia and after members of the federal coalition questioned the nation's reliance on renewable energy projects to achieve net zero by 2050. The final GenCost report for 2024-2025 analysed the cost of several energy-generating technologies, including variations of coal, gas, nuclear, solar and wind projects. Renewable technology continued to provide the cheapest energy generation, the report's lead author and CSIRO chief energy economist Paul Graham said. "We're still finding that solar PV and wind with firming is the lowest-cost, new build low-emission technology," he told AAP. "In second place is gas with (carbon capture storage) ... then large-scale nuclear, black coal with CCS, then the small modular reactors." Small modular nuclear reactors proved the most expensive technology of the eight options by a large margin, with the report basing its costs on Canada's Darlington nuclear project, announced in May. The 1200-megawatt development is estimated to cost $23.2 billion and will be the first commercial small modular reactor built in a Western country. The new reactors produce one-third the power of typical nuclear reactors and can be built on sites not suitable for larger plants, but have only been built in China and Russia. "This is a big deal for Canada - it's their first nuclear build in 30 years," Mr Graham said. "It's not just about meeting electricity demand ... they've said a few things that indicate they're trying to build a nuclear SMR industry and export the technology." In addition to the cost of different technologies, the report estimated "premiums" for establishing first-of-a-kind energy projects, with the first large-scale nuclear project expected to command 120 per cent more and the first offshore wind development expected to cost an extra 63 per cent. The cost of wind projects also grew by four per cent as researchers factored in building work camps to accommodate remote employees, and capital financing costs rose by one per cent. Developing energy projects was also expected to cost between six and 20 per cent more by 2050, the report found, due to the rising price of materials such as cement and wages, as detailed in a report by Oxford Economics Australia. Findings from the CSIRO report would help inform the design of future energy infrastructure, Australian Energy Market Operator system design executive general manager Merryn York said. "We'll use the capital costs for generation and storage from GenCost in the upcoming Draft Integrated System Plan in December," she said. Nuclear technology is banned as an energy source in Australia, which has a target of achieving 82 per cent renewable energy in the national grid by 2030 and reaching net zero by 2050.
