Jim Molan (NSW, Liberal Party) Share this | Hansard source

I rise this evening to speak on the subject of nuclear energy. Our government is working to overcome a crisis of confidence in energy, and it is making good progress. Our nation is blessed with abundant resources—the basis of affordable, reliable energy that Australia once enjoyed. Yet only one in four Australians believe that the energy market is working in their interests, according to a recent survey.

We in parliament have a responsibility to the Australian people to turn this around, to return energy policy to a sensible footing and restore public confidence. To do this, we are getting back to basics, examining the problem and potential solutions with open minds. In the short term, the government's top priority is reducing energy prices, as it should be. Minister Taylor recently announced that we are working towards fairer pricing arrangements that stop energy companies taking advantage of customers. These changes are overdue and should be supported. They promise to make a difference to power bills as soon as possible, which is exactly what Australians desperately need.

However, there are other answers to the big underlying problems in the energy sector. The big challenge in energy is what experts call the trilemma. Over the past decade, the Australian government has concentrated on three things: affordability, reliability, and emissions reduction. The problem is that the technologies in our present energy mix cannot satisfy all three criteria. We have such problems in energy because we are working towards priorities that are difficult to meet with the technologies we are using. Solving the trilemma is the key to restoring confidence in the energy sector. If we are to do this, we must sensibly and deliberately explore potential solutions. The full range of potential solutions over the short, medium and long term must be explored. For too long, Australia's energy debate has focused on coal versus renewables, but by focusing on coal versus renewables we may lose sight of the true breadth of alternatives over the longer period.

One of these alternatives is nuclear energy. In recent weeks, a real conversation has started about nuclear energy; it needs to be continued, because Australia has neglected it as an option for decades. It's time to seriously examine its potential for Australia's energy needs in the 21st century. If we are to be truly fair minded and technologically neutral in relation to our energy future, nuclear deserves serious and sober consideration. Like coal, nuclear energy promises affordable and reliable base-load power. More importantly, it produces a very low level of CO2 emissions. Over time, it has the unique potential to solve the energy trilemma by combining the best of all other technologies.

Expert assessments demonstrate that nuclear is the cheapest energy option that isn't coal. A modern nuclear plant would be able to provide, at minimal operating costs, power for more than half a century. That means that, averaged out over the total life cycle of a power plant, the cost of nuclear energy would be very low. And the up-front cost of plants keep falling as technology advances. A report from the US Energy Innovation Reform Project reveals that the next generation of advanced reactors will cost substantially less than current models. The findings of this report suggest nuclear prices per megawatt-hour are likely to be comparable to those of coal and gas, as presented in the Finkel report. That needs to be repeated: nuclear prices per megawatt-hour are likely to be comparable to those of coal and gas, as presented in the Finkel report.

Unlike coal and gas, nuclear power promises an affordable, reliable energy source without any CO2 emissions. The report of South Australia's Nuclear Fuel Cycle Royal Commission found that nuclear was comparable with wind in producing negligible CO2 emissions. In fact, the total life cycle emissions from nuclear are even less than that of solar. Let me also repeat that: the total life cycle emissions from nuclear are even less than that of solar. Nuclear could, therefore, over time, slash Australia's CO2 emissions.

A study from Electric Power Consulting demonstrated that replacing all coal with nuclear in Australia's energy mix some time in the future would reduce emissions by 93 per cent, and replacing our old coal power plants with advanced nuclear reactors would make a tremendous reduction in emissions and allow Australia to far surpass our international commitments.

Unlike renewables, nuclear promises great reliability. It is not dependent on the sun shining or the wind blowing. It can operate continuously without interruption. This makes nuclear well suited to providing base load power at a scale appropriate for Australia's energy needs. It could supplement or even replace coal as the foundation of Australia's base load power supply. In short, nuclear offers to blend the advantages of coal and renewables. It is reliable, low-cost, low emissions technology.

There are other merits, of course, to nuclear power, beyond solving the trilemma. We live in a time of tremendous technological innovation and nuclear power is no exception. The reactors of today are a long way from the reactors of half a century ago, and the reactors we will see coming online within the next decade will be even more advanced. They will be smaller, safer, cleaner and more efficient than any reactors we have ever seen before.

While we strive to get out of our energy crisis, the rest of the world is embracing nuclear energy for the 21st century. Australia is the only OECD country yet to do so. There is nuclear expertise in this country, but there is also a deep reservoir of international expertise in nuclear energy into which Australia can tap. We would stand to benefit from integration into the existing international networks of scientific, technical and commercial collaborations. Australia could also benefit from adopting the most advanced technology from overseas. This means that we could take the best the world has to offer, learn from mistakes that have been made elsewhere and develop our own expertise through our world-class education and research institutions. This is not to say that there are no questions to be investigated. I'm not recommending nuclear unquestioningly, nor suggesting that we rush headlong into it. Many questions would need to be considered—for instance, what sort of reactor technology would best suit Australia's needs? Some of the designs shortlisted by the Generation IV International Forum was thorium fuel molten salt reactors and graphite-moderated, very-high temperature reactors. These are the kinds of questions that would need to be answered.

Many Australians would also have concerns that would need to be addressed, particularly in the areas of safety and environmental impact. There can be no ducking these matters. They require honest and careful investigation. Questions need to be asked and objections listened to. What is no longer debateable is that nuclear should be considered as an option for Australia's long-term energy needs. We in this chamber have a common responsibility to ensure that Australia's best interests are served by the policies we enact. Energy policy has been deficient in this regard.

The Australian people expect and deserve their standards of living to improve and not get worse. We've seen prices increase and reliability decrease. This impacts families and also businesses. Until recently, most Australians paid little attention to energy—they had no need. They could carry on with confidence that in energy, as in other policy areas, their elected representatives would work in their best interests. We are here in this parliament to do what we can to help realise the Australian dream: the promise of a better future for Australians, their children and their grandchildren and to advance Australia's interests through policies that can help to bring better lives to the citizens of this nation. If nuclear proves to be the best option for Australia's energy future, as I believe it will, we owe it to the Australian people to give it our full consideration.