www.csiro.au/en/news/all/articles/2023/december/nuclear-explainerKey points
*Nuclear power does not currently provide an economically competitive solution in Australia.
*Lead author of GenCost, Paul Graham, says updated costs for a key project in the US have been found to be very high.
*The costs for
small modular reactors (SMRs) could improve over time, but will be too late to make a significant contribution to achieving net zero emissions.
Costs for power generation
Using the standard formula for levelised costs plus the additional calculations specific to additional storage and transmission needs, wind and solar come in at an average of
$112 per megawatt hour in 2023,
decreasing to $82 per megawatt hour in 2030.
In contrast, based on the available updated cost data,
SMRs come in at an average $509 per megawatt hour in 2023,
decreasing to $282 in 2030. This projection shows nuclear SMR capital costs are almost half from today, but still well above the projected costs for wind and solar. "Nuclear costs per megawatt hour are calculated by converting the hard infrastructure costs into annual loan repayments, adding other annual costs such as fuel and maintenance and then dividing that sum by the annual energy output. Every item in the calculation has an uncertainty factor resulting in a cost range," Paul says.