A longtime senior US climate official has weighed in on Australia’s energy debate, saying “very, very few people” internationally are building new nuclear power plants and, in most cases, the combination of solar and batteries delivers “higher reliability than gas”.
Dr Jonathan Pershing, a former US special envoy for climate change and climate negotiator under Democratic presidents, was in Sydney on Monday to speak at the city’s climate action week. Asked whether nuclear power as proposed by the Coalition was a viable option for Australia, he said “almost all the numbers that I have seen suggest that that’s a more expensive option than other choices”.
“What’s really interesting is the global community’s progress on nuclear with, frankly, a bigger head start than Australia’s had, because the ban here has been in place for a long time,” he told Guardian Australia.
“Very, very few people are building new nuclear.”
Pershing, who is program director at the William and Flora Hewlett Foundation, said even if Australia was able to overcome two immediate hurdles to nuclear energy – the legislated ban and an historical lack of public support for the technology – it then faced asking taxpayers to pay “holding costs” for 10 to 20 years when it could be building the same amount of generating capacity sooner.
“The cheapest one still globally, and I think here as well, is probably a combination of solar plus batteries – and that’s firm capacity, by the way,” he said. “If we look at the way that’s been analysed, the combination of the two [solar and batteries] gets you higher reliability than you get from gas.”
He cited the example of the 40-year-old Diablo Canyon nuclear plant, in California. He said it was not likely to be replaced with a new nuclear generator once it reached the end of its life because of the cost. “They’ll do some life extensions, but they don’t think it is even plausible to imagine building new capacity there,” he said. “It’s just too expensive.”
The Coalition has claimed that its proposal to slow the rollout of renewable energy, extend the life of ageing coal plants, rely more on gas-fired power and later build publicly funded nuclear plants at seven sites, mostly after 2040, would be cheaper and more reliable than Labor’s promise of sourcing 82% of Australia’s electricity from renewable energy by 2030.
Peter Dutton has said the Coalition’s claim is supported by a report by consultants at Frontier Economics. But several other independent energy experts have argued the Coalition’s plan would, in relative terms, be likely to be more expensive for consumers over the next decade, at least, and less reliable and lead to substantially higher greenhouse gas emissions.
Pershing said a another problem for Australia would be training personnel for a nuclear power industry. Technical experts would have to be brought from overseas, which isn’t the case for other types of energy generation, he said.
That expertise could come from Canada, China, France or Russia, adding that in the case of Russia, “I’m not so convinced that that’s where you’d want to go”.
Pershing said the Trump administration’s anti-climate action stance would have an effect “but, I think, less than people might imagine”. He said the change in the US was an opportunity for Australia, “depending on how it chooses to engage”.
“The thing that’s most salient is that the rest of the world has decided that the least-cost solution to provide for more energy, particularly for electricity, is through some combination of renewables technologies plus batteries,” he said, citing International Energy Agency data showing it was the cheapest and faster solution “for about 80% of the world”.
“In much of the world, demand [for energy] is rising and you’re going to have to supply that demand from something. That means transition minerals, and that means technology, and that means investment. Those are places that the Australian economy is well positioned to deliver.”
Based on Trump’s language and early actions, the US was likely to slow the construction of wind and solar power and electric vehicles while increasing its demand for critical minerals, he said. But the US was “not the primary place where things are happening”.
“The place where things are happening is across Asia, broadly, with enormous continued demand from China, demand from India, demand from Indonesia and then actually others around the world who are building on that capacity,” he said.
Regarding fossil fuel exports, Pershing said the question for Australia was how it replaced the economic value of the coal and gas it sells with other exports, and what commitments it has made that were consistent with keeping global heating to less than 2C.
Australia could, for example, build a new mutually beneficial trade relationship with Japan where Australia produced and sold zero carbon steel and other metals. Pershing said Australia would also have to deal with the future of communities, such as in the Hunter Valley and its nearby port of Newcastle, that rely heavily on coal mining and coal exports.
“I think these are difficult questions, and they’re legitimate ones for the whole society to take up,” he said. “[A change] is coming. It’s not that it won’t come, but if we don’t manage it, it’ll have enormously negative consequences for communities, and I think that’s on the collective government, civil society and thought leadership to resolve and to address.”
