Does nuclear stack up economically?
Answer
A balanced energy mix of nuclear complemented by renewables is the cheapest path to decarbonisation.
Power bills have been rising dramatically in Australia as a result of the renewables-only energy transition. Whilst solar panels and wind turbines may be cheap to install, the cost of batteries and other storage technologies (such as pumped hydro) required to keep the lights on when the wind isn't blowing and sun isn't shining is a huge expense. Moreover, there are exorbitant costs associated with the poles and wires (transmission lines) needed to connect the many new solar and wind farms being built. These costs are not fully factored into comparisons between a grid with nuclear and a grid with intermittent renewables only.
A study by the United States Department of Energy found nuclear power in the mix alongside renewables reduced system costs by 37% and a recent report by Frontier Economics found adding nuclear to Australia's mix could reduce costs by 25%. Nuclear power in the mix would provide the flexible stability the grid requires reducing the need for expensive storage and transmission projects.
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