Australia's continuing renewable energy boom means the development of nuclear power is not a viable option, a new report from public policy think-tank the Australia Institute has concluded.

Key points: The Australia Institute's energy emissions audit for the month July was released today

The Australia Institute's energy emissions audit for the month July was released today It found SA's renewable energy generation is setting a "real example" for other states

It found SA's renewable energy generation is setting a "real example" for other states It also found nuclear energy would not complement a high renewables sector

With the potential for nuclear power set to be examined by a federal parliamentary inquiry, the institute said the rapid development of wind and solar resources, particularly in South Australia, would render new "baseload" power resources like nuclear uneconomic.

The think-tank's latest National Energy Emissions Audit found that for 44 hours during the month of July, South Australia generated enough wind and solar energy to power 100 per cent of its own demand, with some left over for export to eastern states.

The Institute's climate and energy director, Richie Merzian, said the power grid in SA is effectively eliminating the need for so-called "baseload" supply, the type typically supplied by coal or nuclear.

"What high renewables don't need is a baseload type of energy, so a consistent supply of energy that doesn't ramp up or ramp down to meet peak demand," he said.

"That usually happens when you have those extremely hot days in summer that are becoming more common.

"What our audit shows is the windows where you need that peak demand are few, but that's really where the additional support needs to come and that won't be provided by a baseload support like nuclear."

The Australian Institute audit found nuclear power would not be suitable for Australia's electricity sector. ( Flickr: Rudolf Vlcek )

He said the other issue with nuclear energy was the cost and timeframe needed to build a nuclear power station.

"It takes a long time to build and it doesn't complement high levels of renewables which is what we're seeing in South Australia and the direction we're going in in other states," he said.

Earlier this month, Federal Energy Minister Angus Taylor announced the potential for nuclear energy would be examined by a parliamentary inquiry, but insisted Australia's moratorium on nuclear energy would remain in place.

The parliamentary inquiry is expected to be finalised by the end of the year.

The Australia Institute's audit acknowledged that South Australia's high renewable energy output had forced the Australian Energy Market Operator (AEMO) to regularly intervene in that state's market to maintain system security of the grid.

AEMO does so by directing gas generators to run or directing windfarms to curtail their output, or both, when the level of wind energy is deemed a risk to the stable operation of the grid.

But, according to the institute, AEMO has been gradually reducing such interventions as it gains more experience dealing with the high renewable energy mix.

SA is setting a 'real example'

Mr Merzian said the latest audit had looked at South Australia in particular and had shown it was setting a great example for other states in terms of renewable energy.

"What we found is that for nine of the last 18 months, half of all the energy supplied in South Australia has been from renewable generation, including rooftop solar," he said.

"That means that South Australia has been able to operate for a good chunk of the last year and a half with at least 50 per cent of its energy coming from wind and solar.

"That's impressive and that's the highest in the country and is a real example for where most of the states are going to go."

He said Victoria and Queensland both had ambitious renewable energy targets and while New South Wales did not have a renewable energy target at state level, it would soon be the largest generator of renewable energy.

Renewable supply meeting demand

Mr Merzian said one prime example from the audit was that for almost 50 hours, the supply of wind and solar power in South Australia was equal with the amount of energy demand.

"Over the last month there were 44 hours in total where the state was generating enough wind and solar that is equal to what it actually required as an energy demand," he said.

"Not only is South Australia a great example for the rest of the country, it's also a great example globally."

He said South Australia did not have the same energy security from coal and gas as other states and had become a "champion" for renewable energy because of it.

"South Australia has really had to charge on its own to build that internal reliability from its own energy sources and that's really helped it champion its current make up of energy," he said.

"It also puts a lot of pressure on that transmission link between South Australia and Victoria.

"If South Australia is going to continue to evolve, it's important that we continue to build on these transmission links and infrastructure."

A 2006 report on nuclear power led by Ziggy Switkowski suggested Australia could have up to 25 reactors providing over a third of the country's electricity by 2050.