Peter Dutton’s nuclear plans could halt crucial near-term energy investment, business groups say

Petter Dutton’s ‘ambitious’ nuclear energy plans would seed confusion into the energy market and potentially deter new investment in the sector business groups say.

Opposition leader Peter Dutton has released the costings for his nuclear plan.

Peak business groups have raised concerns that Peter Dutton’s nuclear energy plan could trigger an investment freeze in the energy sector, cruelling plans to roll out new-generation capacity before the Coalition's nuclear plans are realised.

Meanwhile billionaire iron ore mogul and hydrogen proponent Andrew Forrest says nuclear power simply “doesn’t stack up” and governments should focus on reducing electricity bills now, not at some distant point in the future.

The Australian Energy Council, which represents energy retailers and generators, said the Coalition’s nuclear plans, which involved building government-owned nuclear power plants across seven sites nationwide, “raised questions on the role of the market’’.

Chief executive Louisa Kinnear said the group’s members were “particularly concerned about the assumed lack of investment in new and replacement generation over the next 10 years’’.

“We acknowledge both consumers and industry have become concerned with the cost and deliverability of the transition, but slowing investment while we assess technologies only available in the future creates a significant risk for the stability of the energy system,’’ Ms Kinnear said.

“A key issue is the modelling assumes coal remains in the system for longer than asset owners have advised, which could result in reliability issues.’’

The Business Council of Australia said while all forms of power, including nuclear, needed to be considered in the transition to net zero by 2050, “questions remain on how the Coalition’s policy will impact investment certainty’’.

BCA chief executive Bran Black said: “Nuclear energy is not a near-term proposition. However, it could complement Australia’s renewable mix in the future, and so the existing ban should be lifted so all technologies can be considered and the market can decide where best to invest.”

Mr Black said the BCA was also concerned about the amount of taxpayer money required to deliver the policy, and what impact that could have on broader investment in the energy sector.

Dr Forrest, the executive chair of iron ore miner and clean energy aspirant Fortescue, said the Coalition policy was kicking the can down the road.

“Nuclear power doesn’t stack up for Australian families or businesses dealing with the cost of living crisis today,’’ Dr Forrest said. “We need the certainty of lower bills now, not at some distant point in the future. The best way to do that is to pick up the pace of what’s working today – the nationwide build out of renewable energy … ‘firmed’ solar and wind are the cheapest new electricity options.”

Originally published as Peter Dutton’s nuclear plans could halt crucial near-term energy investment, business groups say