Australian Coalition Announces AU$331 Billion Nuclear Power Plan, Gets Mixed Reaction

Australia's Liberal-National Coalition proposed a AU$331 billion taxpayer-funded nuclear power plan on December 13, saying it will deliver cheaper and cleaner energy, along with consistent power supply.

According to a press release, the proposal is based on analysis from Frontier Economics. The Coalition says the projected cost of its plan is smaller compared to the price tag of around AU$600 billion for Labor's approach.

The Coalition has criticised Labor's renewables-only plan, with opposition leader Peter Dutton arguing against its high cost and saying a transition to nuclear energy could potentially save up to AU$263 billion.

"Nuclear power will underpin the economic success of our country for the next century. This will make electricity reliable. It will make it more consistent," he is quoted as saying in an article from Bloomberg.

"It will make it cheaper for Australians, and it will help us decarbonize."

The Coalition's proposal includes the construction of seven commercial nuclear plants by 2050, with the first expected to be operational by 2036. Nuclear power has been banned in Australia since 1998.

Uranium mining is also banned in two areas, namely Western Australia and Queensland.

ASX-listed uranium stocks were on the rise following the Coalition's announcement, responding to optimism that restrictions will be lifted if the plan is approved, creating more opportunities for Australia-focused uranium companies.

Capital Brief reported that companies such as Paladin Energy (ASX:PDN,OTCQX:PALAF), Deep Yellow (ASX:DYL,OTCQX:DYLLF) and Boss Energy (ASX:BOE,OTCQX:BQSSF) respectively had seen share price increases of 4 percent, 1.2 percent and 1 percent by 12:20 p.m. AEDT on December 13.

However, the reactions haven't all been positive — Bloomberg notes that the Commonwealth Scientific and Industrial Research Organisation has said renewable energy, such as wind and solar energy, is more cost effective.

Responding to the plan, Chris Bowen, minister for climate change and energy, called it a “fatal error.”

“It is a dangerous error because it is risky,” he said. “It runs the risk of leaving Australians short of the energy they need.”

No further comments had been made by the Coalition at the time of this writing.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Boss Energy is a client of the Investing News Network. This article is not paid-for content.