This article models the impact on the costs of introducing nuclear power into Australia's energy mix. Energy from nuclear plants progressively replaces that from coal and a proportion of energy from gas by 2050. Cost savings are found to be substantial by reducing the need to purchase overseas abatement and by reducing carbon taxes. The analysis is presented in the belief that sound policy-making requires that all energy options should be on the table, notwithstanding the fact that there are many other considerations, apart from cost, in the adoption of nuclear energy in Australia.