As Australia approaches the next federal election, the nation's energy future has become a focal point of political debate. Prime Minister Anthony Albanese's government has set an ambitious target for 82 per cent of the country’s electricity to come from renewable sources by 2030. However, this target is under threat as Opposition Leader Peter Dutton campaigns to scrap the commitment if his party wins office. Instead, Dutton’s Coalition promises to invest in nuclear power as a solution for the country’s energy transition, a move that has sparked significant discussion within the energy sector.
AGL, Australia's largest power generator, is calling for the government’s renewable energy target to be upheld. AGL’s CEO, Damien Nicks, acknowledged the difficulty of achieving such rapid change, yet stressed the importance of sticking to the goal. Speaking at the Australian Financial Review's Climate and Energy Summit, Nicks emphasised the need for long-term policy certainty, free from political cycles. AGL, which remains a major supplier of coal-fired electricity, is investing billions to build out 12 gigawatts of renewable capacity, backed by battery storage and flexible gas plants, in preparation for the closure of its last coal plant by 2035.
The transition to renewables in Australia is gaining momentum, with wind, solar, and hydro energy currently accounting for approximately 40 per cent of the grid’s energy mix. However, meeting the 82 per cent target remains challenging. Rising costs, slow approval processes, and community resistance to new infrastructure are all contributing to delays. To accelerate the transition, Energy Minister Chris Bowen has expressed confidence in the Capacity Investment Scheme, which aims to drive private sector investment in renewable energy and storage.
Bowen is critical of the opposition’s focus on nuclear power, arguing that it will slow the momentum of renewable projects and prolong the life of ageing coal plants. He further claimed that the Coalition’s nuclear plans are not viable in the near term, as nuclear power is unlikely to be operational in Australia before 2040. Research from the CSIRO and the Australian Energy Market Operator (AEMO) indicates that the high cost of nuclear energy and its long lead time make it an impractical option for the grid’s immediate needs.
Despite these criticisms, the opposition has pledged to build seven nuclear power plants by 2050 to meet Australia’s net-zero emissions target. Energy experts, however, are sceptical of this timeline. AEMO’s CEO, Daniel Westerman, noted that nuclear energy plays a vital role globally but would not be able to replace coal plants scheduled for closure within the next decade. Westerman emphasised the need for continued investment in renewable energy and supporting infrastructure to ensure the grid’s reliability during the transition.
The nuclear debate has raised broader concerns within the energy sector. Executives, such as AGL’s Damien Nicks, stress the importance of clear, long-term energy policies to guide investments. Similarly, David Scrivener from Westpac’s Institutional Bank and Stephanie Bashir of Nexa Advisory argue that political uncertainty risks stalling the progress already made toward a cleaner energy future.
While the Coalition promotes nuclear energy as a solution, proponents of renewable energy believe that the focus should remain on scaling up technologies like wind, solar, and battery storage. EnergyAustralia's CEO, Mark Collette, expressed confidence in renewables but acknowledged the role of gas as a backup. Other industry leaders have suggested that while nuclear could play a role in the future, it is not an immediate priority for Australia.
With the election looming, Australia’s energy future hangs in the balance. The decisions made over the next few months will not only affect the country’s ability to meet its climate targets but also shape its energy security for decades to come. For now, the focus remains on accelerating the renewable energy transition, backed by government schemes and private investment, while the nuclear debate continues to divide opinion on the nation’s path to net zero.