Path forward for Australia to implement nuclear power generation

Path forward for Australia to implement nuclear power generation

Australia’s longstanding objection to nuclear power stems from a combination of historical, environmental, and political factors. The country has abundant uranium reserves but no operational nuclear power plants, with federal bans under the Environment Protection and Biodiversity Conservation Act 1999 and the Australian Radiation Protection and Nuclear Safety Act 1998 prohibiting their construction.

Public concerns often center on waste management, safety risks (amplified by events like Chernobyl and Fukushima), high costs, and the perception that renewables like solar and wind are sufficient for a sun-rich, wind-abundant nation. However, proponents argue that nuclear could provide baseload power to complement intermittency in renewables, reduce emissions, and support energy-intensive industries like mining and data centers.

Despite these objections, other countries manage similar challenges effectively. For instance, France recycles up to 96 per cent  of its spent fuel through reprocessing, reducing waste volume and reusing plutonium in mixed-oxide fuel. Finland and Sweden use deep geological repositories for secure, long-term disposal in stable rock formations, isolating waste for thousands of years without environmental leakage. These approaches demonstrate that waste – often cited as “terrible” in Australian debates – can be handled responsibly through technology and regulation, with nuclear power producing far less waste per unit of energy than fossil fuels.

Given the recent 2025 federal election where the Coalition’s nuclear push was rejected, leading to increased support for the ban (e.g., 54 per cent of Nationals voters and 82 per cent of Labor voters favor maintaining it), implementation faces steep hurdles. Labor’s focus remains on renewables and storage, aiming for 82 per cent renewable energy by 2030. However, shifting public opinion (recent polls show 60 per cent overall support for nuclear, especially among younger demographics) and growing energy demands (Australian Energy Market Operator (AEMO) projects 300 GW needed by 2050) could create openings. Below, I outline a realistic, multi-faceted path forward, addressing political, social, technological, economic, environmental, regulatory, and international aspects. This assumes a policy reversal, potentially via a future election or bipartisan shift.

  1. Political Aspects: Build Consensus and Lift Bans

Current Challenge: Nuclear is politically divisive. The 2025 election saw the Coalition propose seven sites at retiring coal plants (e.g., Liddell and Mount Piper in NSW, Tarong and Callide in QLD), but it was dismissed as a “distraction” from renewables. State bans in QLD, NSW, and VIC add layers, and indigenous land rights complicate uranium mining and siting.

Path Forward:

Advocate for bipartisan support through a parliamentary inquiry or royal commission, similar to the 2019-2020 inquiry that recommended partial ban lifts. Engage cross-party figures and independents to depoliticize the issue, emphasizing energy security amid rising demand from artificial intelligence (AI) data centers and electrification.

Target the next federal election (expected ~2028) with a refined Coalition policy, incorporating cost transparency and community benefits (e.g., job creation funds, as proposed in the $331bn plan). Labor could shift if renewables falter (e.g., transmission delays).

Federally override state bans via constitutional powers if needed, but prioritize negotiation to avoid legal battles.

Timeline: 1-3 years for legislative changes post-election win.

  1. Social aspects: address public fears and build acceptance

Current challenge: Anti-nuclear sentiment is rooted in waste fears, radiation risks, and historical protests (e.g., against uranium mining on indigenous lands). A 2025 survey showed rising ban support despite global successes. Social media debates highlight skepticism, with users calling it “insane politically and financially.”

Path forward:

Launch a national education campaign via ANSTO (Australia’s nuclear agency) and independent experts, highlighting modern safety (e.g., Generation III+ reactors with passive cooling) and waste solutions from France/Finland. Use town halls, VR simulations of plants, and comparisons to Australia’s existing nuclear medicine facilities.

Engage indigenous communities early through co-design and benefit-sharing agreements, respecting Native Title and addressing mining legacies (e.g., Ranger mine rehabilitation).

Offer community incentives: The Coalition’s plan included $20 billion in local funds; expand this to include energy bill rebates and job training.

Monitor public opinion via ongoing polls and adjust messaging – focus on nuclear’s role in climate action, as younger voters are more open.

Solution to waste fears: Adopt international best practices like dry cask storage for interim waste and plan a national repository (e.g., in geologically stable outback areas), with IAEA oversight. Emphasize that nuclear waste globally is managed without major incidents, and Australia’s volume would be small (one plant produces ~30 tonnes/year, recyclable).

  1. Technological aspects: choose proven, scalable options

Current Challenge: No domestic industry means starting from near-scratch, with critics noting builds take 10-20+ years (e.g., UK’s Hinkley Point C delays). SMRs (small modular reactors) are unproven commercially.

Path Forward:

Partner with experienced nations: Import technology from South Korea (AP1400 reactors, built in ~5 years) or the U.S./France for large-scale plants. Start with 2-3 “establishment” projects at coal sites to leverage grids and workforce (e.g., 1 GW each by 2035-2040).

Phase in SMRs later for remote areas, once mature (e.g., NuScale or GE-Hitachi designs). Use Australia’s uranium for fuel, potentially developing enrichment (under NPT safeguards).

Integrate with renewables: Nuclear for baseload, solar/wind for peaks—hybrid models reduce costs by 20-30 per cent.

Timeline: 10-15 years for first reactor, scaling to 9 GW by 2050 (covering ~20 per cent of needs).

  1. Economic aspects: mitigate costs and fund strategically

Current challenge: Commonwealth Scientific Industrial Research Organisation (CSIRO) estimates nuclear at $141-233/MWh vs. solar/wind at $69-101/MWh. Coalition’s $331 billion proposal was criticized as unaffordable, with water shortages at sites adding risks.

Path Forward:Government ownership initially (as proposed) to absorb risks, then privatize operations. Secure private investment via tax credits and partnerships (e.g., with KEPCO).Offset costs with uranium exports ($1billion+/year) and job creation (10,000-15,000 per plant). Long-term savings: Nuclear lasts 60-80 years vs. renewables’ 20-30, potentially saving $1.5 trilion by 2100 in some models. Address water: Use air-cooled designs or desalination (powered by the plant itself), as in UAE’s Barakah.

  1. Environmental and regulatory aspects: ensure sustainability and safety

Environmental: Nuclear cuts emissions (394 metric tonne less by 2050 vs. renewables-only). Solve mining impacts via strict rehab (e.g., Olympic Dam). Waste: National facility by 2030s, modeled on Finland’s Onkalo.

Regulatory: Establish an independent nuclear regulator expanding Australian radiation Protection and Nuclear Safety Agency (ARPANSA). Fast-track approvals using existing International Atomic Energy Agency (IAEA) ties. Timeline: 2-5 years.

International: Leverage AUKUS for tech transfer while complying with NPT. Join global waste forums for best practices.

Potential roadmap in table form

Australia’s longstanding objection to nuclear power stems from a combination of historical, environmental, and political factors. The country has abundant uranium reserves but no operational nuclear power plants, with federal bans under the Environment Protection and Biodiversity Conservation Act 1999 and the Australian Radiation Protection and Nuclear Safety Act 1998 prohibiting their construction.

Public concerns often center on waste management, safety risks (amplified by events like Chernobyl and Fukushima), high costs, and the perception that renewables like solar and wind are sufficient for a sun-rich, wind-abundant nation. However, proponents argue that nuclear could provide baseload power to complement intermittency in renewables, reduce emissions, and support energy-intensive industries like mining and data centers.

Despite these objections, other countries manage similar challenges effectively. For instance, France recycles up to 96 per cent  of its spent fuel through reprocessing, reducing waste volume and reusing plutonium in mixed-oxide fuel. Finland and Sweden use deep geological repositories for secure, long-term disposal in stable rock formations, isolating waste for thousands of years without environmental leakage. These approaches demonstrate that waste—often cited as “terrible” in Australian debates – can be handled responsibly through technology and regulation, with nuclear power producing far less waste per unit of energy than fossil fuels.

Given the recent 2025 federal election where the Coalition’s nuclear push was rejected, leading to increased support for the ban (e.g., 54 per cent of Nationals voters and 82 per cent of Labor voters favor maintaining it), implementation faces steep hurdles. Labor’s focus remains on renewables and storage, aiming for 82 per cent renewable energy by 2030. However, shifting public opinion (recent polls show 60 per cent overall support for nuclear, especially among younger demographics) and growing energy demands (Australian Energy Market Operator (AEMO) projects 300 GW needed by 2050) could create openings. Below, I outline a realistic, multi-faceted path forward, addressing political, social, technological, economic, environmental, regulatory, and international aspects. This assumes a policy reversal, potentially via a future election or bipartisan shift.

  1. Political Aspects: Build Consensus and Lift Bans

Current Challenge: Nuclear is politically divisive. The 2025 election saw the Coalition propose seven sites at retiring coal plants (e.g., Liddell and Mount Piper in NSW, Tarong and Callide in QLD), but it was dismissed as a “distraction” from renewables. State bans in QLD, NSW, and VIC add layers, and indigenous land rights complicate uranium mining and siting.

Path Forward:

Advocate for bipartisan support through a parliamentary inquiry or royal commission, similar to the 2019-2020 inquiry that recommended partial ban lifts. Engage cross-party figures and independents to depoliticize the issue, emphasizing energy security amid rising demand from artificial intelligence (AI) data centers and electrification.

Target the next federal election (expected ~2028) with a refined Coalition policy, incorporating cost transparency and community benefits (e.g., job creation funds, as proposed in the $331bn plan). Labor could shift if renewables falter (e.g., transmission delays).

Federally override state bans via constitutional powers if needed, but prioritize negotiation to avoid legal battles.

Timeline: 1-3 years for legislative changes post-election win.

  1. Social aspects: address public fears and build acceptance

Current challenge: Anti-nuclear sentiment is rooted in waste fears, radiation risks, and historical protests (e.g., against uranium mining on indigenous lands). A 2025 survey showed rising ban support despite global successes. Social media debates highlight skepticism, with users calling it “insane politically and financially.”

Path forward:

Launch a national education campaign via ANSTO (Australia’s nuclear agency) and independent experts, highlighting modern safety (e.g., Generation III+ reactors with passive cooling) and waste solutions from France/Finland. Use town halls, VR simulations of plants, and comparisons to Australia’s existing nuclear medicine facilities.

Engage indigenous communities early through co-design and benefit-sharing agreements, respecting Native Title and addressing mining legacies (e.g., Ranger mine rehabilitation).

Offer community incentives: The Coalition’s plan included $20 billion in local funds; expand this to include energy bill rebates and job training.

Monitor public opinion via ongoing polls and adjust messaging – focus on nuclear’s role in climate action, as younger voters are more open.

Solution to waste fears: Adopt international best practices like dry cask storage for interim waste and plan a national repository (e.g., in geologically stable outback areas), with IAEA oversight. Emphasize that nuclear waste globally is managed without major incidents, and Australia’s volume would be small (one plant produces ~30 tonnes/year, recyclable).

  1. Technological aspects: choose proven, scalable options

Current Challenge: No domestic industry means starting from near-scratch, with critics noting builds take 10-20+ years (e.g., UK’s Hinkley Point C delays). SMRs (small modular reactors) are unproven commercially.

Path Forward:

Partner with experienced nations: Import technology from South Korea (AP1400 reactors, built in ~5 years) or the U.S./France for large-scale plants. Start with 2-3 “establishment” projects at coal sites to leverage grids and workforce (e.g., 1 GW each by 2035-2040).

Phase in SMRs later for remote areas, once mature (e.g., NuScale or GE-Hitachi designs). Use Australia’s uranium for fuel, potentially developing enrichment (under NPT safeguards).

Integrate with renewables: Nuclear for baseload, solar/wind for peaks—hybrid models reduce costs by 20-30 per cent.

Timeline: 10-15 years for first reactor, scaling to 9 GW by 2050 (covering ~20 per cent of needs).

  1. Economic aspects: mitigate costs and fund strategically

Current challenge: Commonwealth Scientific Industrial Research Organisation (CSIRO) estimates nuclear at $141-233/MWh vs. solar/wind at $69-101/MWh. Coalition’s $331 billion proposal was criticized as unaffordable, with water shortages at sites adding risks.

Path Forward:Government ownership initially (as proposed) to absorb risks, then privatize operations. Secure private investment via tax credits and partnerships (e.g., with KEPCO).Offset costs with uranium exports ($1billion+/year) and job creation (10,000-15,000 per plant). Long-term savings: Nuclear lasts 60-80 years vs. renewables’ 20-30, potentially saving $1.5 trilion by 2100 in some models. Address water: Use air-cooled designs or desalination (powered by the plant itself), as in UAE’s Barakah.

  1. Environmental and regulatory aspects: ensure sustainability and safety

Environmental: Nuclear cuts emissions (394 metric tonne less by 2050 vs. renewables-only). Solve mining impacts via strict rehab (e.g., Olympic Dam). Waste: National facility by 2030s, modeled on Finland’s Onkalo.

Regulatory: Establish an independent nuclear regulator expanding Australian radiation Protection and Nuclear Safety Agency (ARPANSA). Fast-track approvals using existing International Atomic Energy Agency (IAEA) ties. Timeline: 2-5 years.

International: Leverage AUKUS for tech transfer while complying with NPT. Join global waste forums for best practices.

Potential roadmap in table form

Step

aspect

Actions

Timeline

Key Challenges/Solutions

1

Political

Lift bans via legislation; bipartisan inquiry

1-3 years

Division – build via education/election win

2

Social

Public campaigns; indigenous engagement

1-5 years

Fears – highlight global successes like France’s recycling

3

Regulatory

New agency; safety standards

2-5 years

Inexperience – partner with IAEA

4

Technological

Site selection; import reactors

5-10 years

Delays – start at coal sites; use proven tech

5

Economic/Environmental

Funding; waste repository

5-15 years

Costs – government seed, private scale; adopt deep disposal

6

Operation

First plant online; scale up

10-20 years

Integration – hybrid with renewables

This path could position Australia as a late but smart adopter, but it requires depoliticising the debate. Renewables remain faster/cheaper short-term, so nuclear should complement, not replace, them. If addressed, ongoing reliance on gas/coal risks emissions targets and energy prices. 

INVEST WITH MONTGOMERY

Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.

He is also author of best-selling investment guide-book for the stock market, Value.able – how to value the best stocks and buy them for less than they are worth.

Roger appears regularly on television and radio, and in the press, including ABC radio and TV, The Australian and Ausbiz. View upcoming media appearances. 

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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