Nuclear ReadinessSACOME recommends that relevant State authorities such as InfrastructureSA and the South Australian Productivity Commission are funded to undertake analysis of the International Atomic Energy Agency’s Milestones Approach and supporting guidance to ensure South Australia’s readiness as part of a national nuclear program.
South Australia has been at the forefront of the energy transition nationally, with over 70% of our energy generation coming from renewable sources. However, this transition has significantly impacted the State’s commercial and industrial base, with recent SACOME analysis identifying that system security costs charged by AEMO have escalated by over 200% since 2016, with no signs of this trend abating.
Whereas previously system security costs were barely a feature, commercial and industrial customers have reported these costs now represent 20-30% of their electricity bills. SACOME has previously made submissions to the Commonwealth regarding the need to lift the country’s nuclear prohibition and provide optionality to both current and future governments in meeting the nation’s prospective energy needs. Countries looking to introduce civil nuclear power are guided by the IAEA Milestones publication Milestones in the Development of a National Infrastructure for Nuclear Power, which requires approximately ten years of preparatory work prior to the first reactor coming online. Linked to this framework is an Evaluation document which the IAEA use to conduct an evaluation of a country’s nuclear program. SACOME recommends that relevant State authorities such as InfrastructureSA and the South Australian Productivity Commission are funded to undertake analysis of the International Atomic Energy Agency’s Milestones Approach and supporting guidance to ensure South Australia’s readiness as part of a national nuclear program. The IAEA Milestones Approach is an internationally accepted methodology that supports a sound process for countries considering the development of a national infrastructure for nuclear power and enabling countries to “self-assess” the readiness of their programmes to move forward. While most of this preparatory work can only be done or commissioned by the Commonwealth Government, there are several discrete roles that subnational jurisdictions can undertake. Recognising the complexity of undertaking a regional and site-specific identification analysis, SACOME recommends that relevant State authorities - such as Infrastructure SA and the South Australian Productivity Commission - undertake analysis of the IAEA Milestones Approach and supporting guidance to ensure that the State is well informed about the process should the Federal prohibition on nuclear energy be removed. SACOME submits that this activity would provide a holistic understanding of the economic potential of nuclear, given:
Such work would not only advance Australia’s progress against the IAEA Milestones Framework but would be consistent with the findings of the 2016 Royal Commission that “it would be wise to facilitate a technology-neutral policy for Australia’s electricity generation mix” and that to ensure that this is the case, “action is required now.”
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