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    Liberal Nuclear Energy Policy 2025 Explained

    14 June 2025 • by VoteGuide Team

    The Liberal Party's 2025 policy backs Small Modular Reactors at former coal plants by 2035, funded by 20-year zero-interest CEFC loans and enabled by repealing the federal nuclear ban.

    Why nuclear is back on the table

    After decades of being politically untouchable, nuclear energy has re-entered mainstream Australian political discourse. The Liberal Party's pivot toward nuclear power is driven by three key factors reshaping the energy landscape.

    Rising power prices and reliability concerns have become central issues for Australian households and businesses. As coal-fired power stations reach end-of-life and are retired, the challenge of maintaining baseload power while transitioning to cleaner energy has become more pressing.

    The baseload challenge

    • Coal retirements bring baseload shortfall: Major coal plants are scheduled for closure throughout the 2020s and 2030s
    • Grid stability concerns: Renewable energy requires backup storage or dispatchable power for reliability
    • International cost trends: Small Modular Reactor cost-curves are trending downward globally
    • Energy security: Reduced dependence on gas imports and volatile renewable generation

    The Liberal position argues that nuclear power offers a proven technology for providing reliable, carbon-free baseload electricity that can complement renewable energy sources rather than compete with them.

    Projected SMR LCOE vs gas & renewables (2035)

    SMR (2035)Gas PeakerFirmed Solar+Wind$0$30$60$90$120$/MWh

    Levelised cost in $/MWh: SMR, gas peaker, firmed solar+wind

    Key elements of the Liberal plan

    The Liberal Party's nuclear energy policy centers on Small Modular Reactors (SMRs) rather than traditional large-scale nuclear plants. This approach is designed to be more politically palatable and technically feasible for Australia's energy system.

    Liberal Nuclear Implementation Plan

    Repeal federal nuclear ban: Remove the 1998 prohibition on nuclear power generation to enable regulatory framework development.
    Site SMRs at ex-coal locations: Retrofit Small Modular Reactors at former coal power station sites to utilize existing grid infrastructure.
    Zero-interest CEFC loans: Provide 20-year 0-interest loans via Clean Energy Finance Corporation for first two reactors.
    Target 2035 operation: First SMR grid-connection targeted for 2035, contingent on regulatory approvals and community support.

    Small Modular Reactor basics

    SMRs represent a new generation of nuclear technology designed to be safer, more flexible, and economically viable at smaller scales than traditional nuclear plants:

    • Capacity under 470 MW: Much smaller than conventional nuclear plants (typically 1000+ MW)
    • Factory manufactured: Built in factories and transported to sites, reducing construction time and costs
    • Passive safety systems: Designed to shut down safely without external power or human intervention
    • Modular deployment: Multiple units can be added as demand grows

    Legislative changes required

    Implementing nuclear power in Australia requires significant legislative reform:

    • Repeal of the Environment Protection and Biodiversity Conservation Act nuclear prohibition
    • Development of nuclear safety and regulatory framework through ARPANSA
    • State government cooperation for planning and environmental approvals
    • Workforce development and training programs for nuclear technicians

    Timeline & next steps

    The Liberal Party has outlined an ambitious but realistic timeline for nuclear power introduction, acknowledging the substantial regulatory, technical, and community engagement work required.

    Implementation timeline and milestones

    The Liberal nuclear program follows a carefully sequenced timeline designed to address regulatory, technical, and community acceptance challenges. Each phase builds on previous achievements while maintaining flexibility for course corrections.

    • 2025-26: Feasibility studies & site selection: Comprehensive technical assessments of former coal sites, community consultation processes, and preliminary regulatory framework development
    • 2027: Environmental approvals & community vote: Environmental impact assessments, state government negotiations, and local community referendums on proposed sites
    • 2030: First concrete pour if LNP wins two terms: Construction commencement contingent on regulatory approvals, technology selection, and sustained political support
    • 2035: First SMR operational target: Grid connection and commercial operation of inaugural Small Modular Reactor facility

    Australian public support for nuclear 2010-2025

    2010201520202022202420250%15%30%45%60%

    Essential poll percentages by year

    Key Policy Points

    2035 target year for first SMR grid-connection
    Focus on Small Modular Reactors under 470 MW
    Zero-interest loans for first two reactors
    Requires repeal of 1998 federal nuclear ban

    Frequently Asked Questions

    The Liberal Party's nuclear energy policy represents a significant shift in Australian energy policy, offering an alternative pathway to decarbonization that complements rather than replaces renewable energy. Success will depend on sustained political support, community acceptance, regulatory development, and technological maturation of SMR technology.

    For more information on energy policy alternatives, explore the Liberal Party profile or compare across the full policy comparison.