Untrue. The nuclear-free zone act specifically does not preclude nuclear power generation. The fact that it hasn’t happened is no different from most other places where it hasn’t happened. A combination of fear, nimby, cost, regulation and easier options.
Oops, looks like you're right. Wikipedia says "The nuclear-free zone Act does not prohibit nuclear power plants, nuclear research facilities, the use of radioactive isotopes, or other land-based nuclear activities."