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Leave nuclear power to industry: Paterson

June 3, 2025

Tuesday 03 June 2025
Philip Coorey
Australian Financial Review


 Opposition finance spokesman James Paterson has put the Coalition's nuclear  power policy to the sword, saying lifting the moratorium on the energy source  and leaving the rest to the private sector was more consistent with Liberal  Party philosophy than building and owning generators.
 
 The move, which cements last week's deal to water down the policy as part of  the new Coalition agreement, has killed off the prospect of nuclear power in  Australia, at least in the medium term.
 
 Clean Energy Investor Group CEO Richie Merzian said that because of time and  cost, there was no appetite in the private sector to invest in nuclear power  even if the moratorium was lifted.
 
 But the Grattan Institute's Tony Wood said nuclear power, especially small  modular reactors, could be back in play within 20 years if the current policy  of renewables firmed by gas and batteries doesn't go as planned.
 
 ''You can rule it out for now, but I wouldn't rule it out coming back in the  future,'' he said.
 
 The Coalition went to the last election promising to build and operate seven  nuclear power plants two small modular reactors and five large-scale plants  from 2035 onwards. The total system cost, which included the mix of nuclear,  renewables and gas, was modelled at $334 billion.
 
 In the lead-up to the election, Labor ran a scare campaign, claiming the  nuclear cost alone would be $600 billion. Amid deep misgivings by Liberals  about recommitting to the policy, last week, as part of a new Coalition  agreement, Liberal leader Sussan Ley and Nationals leader David Littleproud  agreed that any ongoing commitment to nuclear energy be confined to lifting  the moratorium.
 
 The plan to build seven nuclear power plants would be subject to a review of  all policies to be undertaken in the wake of the Coalition's heavy defeat on  May 3, but Paterson said yesterday the old policy was unlikely to ever be  revisited. ''The answer for the Liberal Party going forward on this is  probably not to take what we did to the last election, which is a  governmentinitiated and managed and run program where taxpayers would finance  and build them,'' he said.
 
 ''But instead go for a more traditional Liberal approach, a more marketbased  approach, which is repeal the prohibition on nuclear power, and then leave it  up to the energy industry to decide if they want to invest in nuclear.
 
 ''But it shouldn't be against the law to, which it is what it is right now.''  Separately, he told Sky News: ''It's very unlikely that we'll be taking  taxpayer-financed nuclear power sites to the election. I think that it's much  more likely, consistent with our agreement with the National Party.'' The  Coalition was reduced to 43 seats at the election, meaning it is unlikely to  be back in government until 2031, which is two elections away.
 
 With Labor opposed to nuclear, that means the renewables rollout would  continue unabated for another six years, making the economic case for nuclear  less compelling.
 
 ''None of the investors in the CEIG, which is 50 per cent of new energy  generation, are interested in nuclear in Australia, full stop,'' Merzian  said.
 
 ''That includes major investors who own nuclear assets overseas.'' The  objection was not philosophical, but based on time and cost, he said.
 
 Wood said the election outcome meant nuclear was definitely no longer part of  ''plan A'' but modular reactors may need to be part of the long-term solution  if there are problems with using batteries and gas to firm renewables.

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