The report is the second part of a series from independent economic consultants Frontier Energy on modelling the economics of including nuclear in Australia’s National Electricity Market (NEM): the first part, released in November, established the base case against which to compare cost impacts based on the AEMO Integrated Systems Plan.

Amid the lower projections, the department said, "India remains the key export destination for Australian metallurgical coal along with Japan, with volumes remaining relatively stable for both."

Australia stands on the precipice of an impending power shortage crisis, set to hit households and businesses along its eastern coastline by 2027.

The package will introduce tax incentives worth A$7 billion for the processing and refining of 31 critical minerals and A$6.7 billion for renewable hydrogen production from the fiscal year ending June 2028 to the 2039-40 fiscal year.

Australia's total coking coal exports are expected to increase by 14% from 2023 levels to 171.9 million mt in 2025,

The assessment showed that pressures on Australia’s financial system from a surge in climate-related disaster claims could lead to a “plausible worst-case scenario” whereby insurers and lenders pull out of highly-exposed communities.

The deal will further facilitate Australia's exports of coal and liquefied natural gas to Vietnam, the ministry said in a statement, noting that Australia is now a key coal supplier to Vietnam, accounting for 44% of its total coal imports.

Australia is a sunny country with excellent renewable energy resources. However it is not rolling out clean energy projects rapidly enough to reach the Australian government’s target of 82% renewable electricity by 2030.

“Russian and Australian coal shipments are taking market share from China’s biggest exporter Indonesia this year,”

At the end of 2021, wind power accounted for 11% of Australia’s installed capacity with 9 GW and 9% of its power generation with 24.5 TWh.

Australia’s energy minister has ruled out a ban on new coal mines as part of the country’s overhaul of climate policy.

The wind project is currently under development near the Port of Newcastle and will be situated in proximity of energy transmission infrastructure.

The target was confirmed alongside the publication, on Friday, of the terms of reference for the New Zealand Energy Strategy, which maps out the ambitions and next steps for shifting to a “high performing, low emissions” future.

Going by big-ticket announcements of exits from coal in the last few weeks, sentiment in Australia is tilting toward those opposed to coal consumption, but market sources believe in the absence of replacement electricity generation sources, the closure of coal plants will inflate consumer power prices.

The Australian Nuclear Science and Technology Organisation has operated a nuclear research reactor at Lucas Heights for more than 60 years, but the use of nuclear power in Australia is currently prohibited by federal and state-level legislation.