At a federal level, the Coalition argues that nuclear energy provides stable, low-emission baseload power and should form part of Australia's energy mix. However, there's strong resistance, particularly from eastern state leaders who remain firmly opposed. Complicating matters further, each Australian state currently has its own prohibitions or restrictions on nuclear energy development.
The Labor government, meanwhile, favours a different path. They've set ambitious targets to source 82% of Australia's electricity from renewables by 2030 - a policy direction aimed at immediate emissions reductions without waiting decades for nuclear facilities to be built.
Nuclear vs Renewables: What's the Best Option for Businesses?
We can't talk about energy policy without discussing the effects it will have on Australian businesses. Right now, nuclear energy faces some significant economic hurdles. To start with, it's incredibly expensive to set up, with costs trending upwards, not downwards, across the globe.
In fact, countries with established nuclear programs - like France and the United States - are opting not to replace their ageing reactors due to enormous construction and operational costs. The private sector of Australia also appears to be very hesitant to put any investment into nuclear energy; an important part of lowering the costs of this plan overall.
By contrast, renewables such as solar and wind are becoming more affordable every year. Global adoption of renewables has driven costs down substantially, making them increasingly competitive and economically attractive to businesses. Unlike nuclear, renewable projects also have shorter lead times - years rather than decades - allowing businesses to see benefits to their energy bills and emissions profiles much sooner.
Another concern is that pursuing nuclear energy could divert funding away from Australia's renewable energy industry. For businesses seeking stable and predictable energy costs, the risk of delaying renewable investment to prioritise expensive and slower nuclear infrastructure could lead to higher energy prices and increased financial uncertainty over the long term.
One of the biggest issues with the nuclear route is its timeline and what that means for Australia's coal plant usage. The last of Australia's coal plants are on track to be shut down as early as 2034 (4 years earlier than previously suggested). With nuclear not likely to be fully online until long after that, it means the probable extension of coal energy production in Australia for many years to come.
Why Policy Stability Matters to Businesses
We're finding that all of this is leading to extreme uncertainty for Australian businesses over their energy future. With the Labor government aiming for rapid renewable adoption, and the Coalition advocating for a nuclear future, businesses face conflicting policy directions. This uncertainty makes forecasting future energy costs difficult, complicating long-term planning and investment decisions.
When energy policies shift dramatically based on election cycles, businesses struggle to confidently commit to infrastructure upgrades, renewable energy investments, or new contracts. Without a stable, predictable framework, energy procurement strategies become short-term, reactive measures rather than long-term strategic decisions.
A stable policy doesn't just reduce uncertainty - it directly helps businesses manage their energy costs, minimise risk, and confidently plan for growth. Ultimately, businesses need clarity on Australia's energy roadmap to make informed decisions and safeguard their financial future in an increasingly competitive marketplace.
Is Nuclear Energy in Australia's Future?
The nuclear energy debate has changed a lot over the years. As is the case with many major policy decisions, the market tends to point the way forward. Australian businesses and investors seem to have voted with their wallets already, choosing to invest heavily in renewable energy over the last two decades.
As a country, we have set - and are committed to - the goal of being at net zero by 2050. this goal simply cannot be met if we hold onto coal in order to pursue nuclear energy. The costs will be enormous, both environmentally and economically.
It seems that at this point, we've missed the boat on nuclear energy, and this proposal has come too late to really make sense for the future of Australian energy. This debate is no longer centred around the dangers of nuclear, in which naysayers talk of Chornobyl and Fukushima as the key reasons for us not to go nuclear. At this stage, it just comes down to costs, and the costs look bad.
If your business is looking for ways to cut down on its own energy expenditure, we have a range of tried and tested methods to help you do exactly that. And none of them involve nuclear. Contact Choice Energy for your free energy assessment today.
