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“THE PREREQUISITES FOR NUCLEAR ENERGY”: AUSTRALIAN PARLIAMENT ANNOUNCES NEW ENERGY INQUIRY

Australia’s stance on civil domestic nuclear power has taken a surprising turn in recent days, with the announcement by the Energy Minister of a federal government inquiry into the “prerequisites for nuclear energy in Australia”.

Australia is the world’s third largest uranium producer (after Kazakhstan and Canada) but has traditionally steered clear of introducing nuclear as an energy source, instead relying on its reserves of coal and natural gas, which provide some 60% of its energy supply (33% is from oil, 4% biofuels, 1% hydro, 1% renewables). 

Previous Discussions

There have been several attempts to bring the nuclear discussion to the fore over the years, although these have never materialised. The last federal inquiry into the issue was held in 2006. Its chair, Dr Ziggy Switkowski, the retired chairman of Australia’s Nuclear Technology and Science Organisation (ANTSO), has now said that he thinks nuclear power could coexist with whatever “generation of renewables and batteries might exist into the future”.

In March 2015 the South Australian Government established the Nuclear Fuel Cycle Royal Commissionto undertake an independent and comprehensive investigation into the potential for increasing South Australia’s participation in the nuclear fuel cycle.” It reported in May 2016 on four main areas: exploration, extraction and milling; further processing and manufacture (of nuclear fuel); electricity generation and the management, storage and disposal of (radioactive) waste.

The idea of South Australia hosting an international disposal facility was found to deserve further analysis, plus the Commission recommended that existing prohibitions on nuclear power generation be removed. However, the Commission’s various proposals did not gain the bipartisan support necessary to be taken forward.

The New Inquiry

This is being held by the cross-party House Standing Committee on the Environment and Energy, and has to deliver its findings “by the end of the year”.

The background to the inquiry recognises that Australia has to fulfil its emissions reductions obligation, and that there continues to be a bipartisan moratorium on nuclear energy. However, it recognises the emergence of new technologies and changing consumer demand, with the Minister having specifically asked the inquiry to consider Small Modular Reactors (SMRs). Other aspects of the Terms of Reference include waste management; transport and storage; health and safety; environmental impacts; energy affordability and reliability; economic feasibility; community engagement; workforce capability; security implications; national consensus and “any other relevant matter”.

The inquiry will also have regard to the South Australian Nuclear Fuel Cycle Royal Commission and the 2006 Switkowski review.

The inquiry has very ambitious timescales and we will watch how it develops with interest!

About the Author

Prospect Law is a multi-disciplinary practice with specialist expertise in the energy and environmental  sectors with particular experience in the low carbon energy sector. The firm is made up of lawyers, engineers, surveyors and finance experts.

This article remains the copyright property of Prospect Law Ltd and Prospect Advisory Ltd and neither the article nor any part of it may be published or copied without the prior written permission of the directors of Prospect Law and Prospect Advisory.

This article is not intended to constitute legal or other professional advice and it should not be relied on in any way.

For more information or assistance with a particular query, please in the first instance contact Adam Mikula on 020 7947 5354 or by email on adm@prospectlaw.co.uk.

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