The Climate Council welcomes comments today from Climate Change and Energy Minister Chris Bowen that data centres will be powered by renewable energy, and that there will be no “carve-outs” for some jurisdictions – contradicting claims from the Northern Territory and Queensland governments.
Mr Bowen today confirmed the Federal Government would “legislate binding national standards for data centres across the country without exception, which will require 100% renewables backed by firming”.
However, in the wake of the National Cabinet meeting this week, Minister Bowen has clarified the rules will allow state-owned fossil fuel assets to make a case-by-case argument to power data centres with fossil fuels. Renewables are the cheapest form of power, and consistently driving down prices – and this adds uncertainty and risk for communities.
With at least 225 data centre proposals in the pipeline, Australia can’t afford to allow anything less than 100% additional renewables to power the industry. Research shows fossil-fuelled data centres would drive wholesale power prices up more than 20% over the next 10 years. How governments translate this announcement into law and practice will shape Australia's power bills and climate pollution for a generation.
Climate Council CEO Amanda McKenzie said:
“Australians are looking to governments to get this right. There's a lot on the line – our energy security, the price of power and how much harmful climate pollution we lock in. People expect a fair dinkum deal, not a dud one that puts the interests of industry and big tech first.
“Renewable energy is already the cheapest and fastest option to build, so this is a question of whether data centres bring genuinely new clean energy with them, or soak up capacity the rest of us need. Clear and consistent national standards that deliver additional renewable energy, without any exceptions, is the only way to avoid higher power prices and pollution.
“Anything less than matching all new demand with new renewables will delay the retirement of aging and unreliable coal power stations, increase reliance on polluting and expensive gas, and push up power prices and pollution.
“Australia has one shot at getting this right so we avoid the negative impacts caused by unchecked data centre growth seen in other countries.”
ENDS
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