Speech to the National Press Club, Canberra

**Check against delivery** Acknowledgements Thank you for joining me on the lands of the Ngunnawal and Ngambri peoples and who’s elders I acknowledge. Energy Security in an Uncertain World While this speech is in Canberra, it is not about Canberra. Today I want to talk about the regions and suburbs of Australia, and what they are doing to reduce their bills, their emissions and improve Australia’s energy security in these uncertain times.

You may have heard of Tarneit - 30 kilometers West of Melbourne. While you may have heard of it, I doubt you have heard its remarkable story. It’s not a woke inner city enclave.

People there are not at the top of the income scale. In the Federal electorate of Lalor, Tarneit is quintessential suburban Australia. Tarneit may be an ordinary Aussie suburb, but it tells a very special story.

You see, of all the suburbs in Australia, it is Tarneit which has taken to the Government’s Cheaper Home Batteries program with the most enthusiasm. And, something else, it is also the suburb in Australia with the highest take up of our EV tax discount. This is not a coincidence.

This is our policies working together as intended. People getting a battery and then maximising its contribution to their cost of living by using it to power their EV at a rate much cheaper than filling up at the servo. But there is also a deeper story.

As impressive as Tarneit’s story is, it is reflective of suburbs right across our capital cities and also our regions, who are undertaking a commonsense revolution. While I am sure the people of Tarneit and similar suburbs across Australia are pleased with the part they are playing in reducing emissions and tackling climate change, for most I don’t think it is their over-riding motivation.

They know that getting solar and a battery reduces their energy bills. They know that EVs are cheaper to run and shields them against global oil shocks. They know that what is good for the planet, is good for their pocket.

Despite all the noise from the Coalition of the Liberals, the Nationals and One Nation. Despite the wall of climate denial and negativity which finds a home on the opinion pages of some Australian newspapers. Despite the loud attempts to ride the algorithms of social media to stop the transition, the quiet majority of Australians are simply getting on with it.

The Australian people have expressed their view in two ways. In May last year they expressed it by rejecting the plan to slow renewable energy and wait for the most expensive form of energy - nuclear. And they are expressing it every day in the choices they are making to install solar, batteries and buy electric cars.

The commonsense choices that Australians are making to upgrade their own energy infrastructure with modern, reliable renewables is the same as our approach for the country. When the Straits of Hormuz closed, politicians on the right wing said rationing was inevitable. In some cases they demanded it.

We had the view that a calmer, more sensible approach was necessary. As a result, Australia has more fuel today than we had when Iran was first bombed. I know the Opposition is disappointed about that - their breathless scare mongering has been shown for what it is.

But I think the average Aussie thinks that is a pretty good outcome. While working hard in recent months to ensure our fuel security we’ve taken the approach of securing fuel now and supporting less fuel use now and into the future. We’re working to develop Australia’s Low Carbon Liquid Fuels – with consultation on how we create a market to foster more domestic production underway.

Making cleaner fuel here in Australia, from Australian feedstock will help back our innovators from the farmer to the fuel bowser, make our fuel supply cleaner and more secure, and provide a pathway for industries that are hard to abate. We have also backed Australians in their choices to improve their own fuel security by buying EVs through the electric vehicle tax cut and the New Vehicle Efficiency Standards.

They have taken that option up with alacrity. In the first 6 months of this year, EVs and plug in hybrids accounted for 27 per cent, about 191,830, of light vehicle sales. This is up from 13 per cent in the 2025 calendar year.

The roll-call of suburbs with the highest take up of our electric vehicle tax cut reads like trip adviser of the outer suburbs of our capital cities: Tarneit, Werribee, Kellyville, Marsden Park, Craigieburn, Cranbourne, Baulkham Hills. Just like households are investing in new energy fit outs for modern purposes, so is the country as a whole. A little over two years ago I addressed the National Press Club and shared a key fact.

Back then, I told this room that in the year before that speech, not a single day had passed without an outage at a coal-fired power station in eastern Australia. Not one day. Well, I can report back.

In the two years since — still not a single day. Not one. Three years in a row.

Every single day. A coal outage somewhere in eastern Australia. In the first quarter of this year the average daily coal outages increased by 23% across Queensland, NSW and Victoria, compared to the first quarter in 2025.

In Queensland alone the increase in outages rose by 84%. Coal isn’t baseload power anymore – it's an unreliable asset. Every time coal breaks down – your bills go up.

This isn’t to criticise the good men and women in those regions working hard to try to keep these things running. It’s simply economics and engineering. Our coal assets are ageing – the average age of our coal power stations in the national energy grid is 38 years.

They need to be replaced. Some want to sweat these coal assets for longer. To rely on them more, not less.

To ignore reality and mislead Australian people. That’s a recipe for unreliability. For blackouts.

And for increased bills. We have a different plan. To replace ageing coal fired power with new, abundant renewable energy, backed by storage and gas peaking.

And while we of course face some challenges and headwinds, these are not unique to Australia’s energy transition. As the economics of big batteries have improved, this together with falling wholesale energy prices and rising costs of wind turbine installation globally has meant that wind farms have found it harder to reach final investment decision. In addition, decisions by the Queensland Government to create sovereign risk by withdrawing support for previously approved wind farms are not in the interests of Queenslanders or Australians, and make our national transition harder.

Despite this – our transition is progressing well. In May 2022 our national energy grid was about a third renewables. In the last quarter of 2025 it hit 50% and each quarter in 2026 has broken a new quarterly record.

The pace of our energy transition will only serve to further insulate us from global energy insecurity which is not getting any better. In the last financial year, over 8 gigawatts of new large-scale renewable energy and storage was connected to the grid. Not planned, not announced.

Connected, up and running. That’s double the previous financial year. With a further 3.4 gigawatts of solar added on the roofs of households and small businesses.

Renewable records were broken again in the last quarter, with wind up 20% from the same period a year earlier. Large-scale solar up 12%, while coal was down 5% and gas down 30%. As a result, wholesale spot prices averaged $74/MWh, down 47% from the same period a year earlier – and the lowest second quarter average in six years.

But the real standout is Australia's battery story. I generally don’t need much encouragement to talk about the suburban uptake. But what I think a lot of people maybe haven’t fully appreciated yet is just how globally significant the take up of nearly 2000 batteries each weekday is.

In just one year, Australian households and small businesses have installed more than 13 GWh of small-scale battery storage through the Cheaper Home Batteries Program. Put that in perspective: the United States installed 3.1 GWh of residential battery storage in all of 2025, bringing its total residential capacity to 9 GWh. So, in the last twelve months Australians have installed more home battery capacity than the US has ever installed.

Another comparison - last year, the entire European Union added 12.3 GWh of residential battery storage. The population of Europe is a fair bit bigger than Australia’s, so we are doing well. In 2025, Australia ranked second only to Germany for new residential battery capacity.

In 2026, we're forecast to be the number one market in the world. The Cheaper Home Batteries Program has been a remarkable success. Government helped remove that last barrier, and Australians responded.

I’ve talked about Tarneit, but there’s plenty of other examples. There are now five electorates where more than 10% of houses have installed home batteries: Mitchell, Greenway and Hume in NSW. Mayo in South Australia and Wright in Queensland.

Anyone who tells you people in the outer suburbs and regions don’t support the energy transition have fundamentally misread the suburbs and regions. And here’s the other thing. This battery revolution in Australia is reducing prices for everyone.

The first quarter of this year saw the lowest gas use in our energy system in 26 years, with the second quarter the lowest quarterly gas result since 2003. Gas remains essential for our industry. But for too many years, despite Australia being among the world’s largest gas producers, we’ve faced warnings of shortfalls.

That’s why we’re working to deliver an Australian Domestic Gas Reservation – to ensure we have the affordable gas we need here, while remaining a reliable trading partner. But it’s also true that gas is playing less and less of a role in our electricity system as batteries play more and more. Batteries now set the price more than a third of the time compared to just 13% a year ago.

And they are setting the price lower than gas would. This has played no small role in getting us to the situation where those wholesale prices are now. The International Energy Agency recently pointed out that Australia is one of the few countries in the world that saw a fall in wholesale energy prices over the last twelve months, and they call out renewables and battery uptake as the cause.

So this is good progress. Of course, to be frank there are some elements of the transition which are facing headwinds. While neither hydrogen or offshore wind play a role in our 82 target, the cost curve for both has not come down as quickly as was predicted a few years ago.

Having said that, last month we saw Australia’s biggest commercial scale hydrogen production project, at Orica’s Kooragang Island take its final investment decision-integrating renewable hydrogen with ammonia manufacturing. Globally, low emissions hydrogen production did grow 20% in 2025 - with progress occurring mainly in Europe and China. Likewise, offshore wind has faced structural constraints around the world which make starting the industry from scratch harder than it would otherwise be.

Some like to point to these challenges to discount the transition. I see it differently-the cost curve coming down isn’t always linear and isn't always as predicted. We are focussed on delivering our 2030 targets while keeping our eye over the horizon.

Putting more rooftops to work So progress is good. But there’s always more to do. The lesson from Cheaper Home Batteries and EVs is clear to me: with the right policy settings Australians will respond enthusiastically in ways which can lead to globally leading outcomes.

When asking what more we can do, the key is identifying gaps in progress. Utility scale solar is going well. Rooftop household solar continues to break records.

But, to be very frank, there is a missing middle in Australia’s energy transition. Many of you in this room have to spend plenty of time on aero planes for work. You might have noticed when you come in to land the prevalence of solar on residential rooftops – you’d see more solar panels than backyard pools.

But have you also noticed that many warehouse and factory roofs are devoid of solar panels, or only have panels covering fairly small percentage of the roof space? The missing middle is mid-scale solar. Factories, warehouses, farming sheds and large industrial premises – big empty roof space ripe for solar generation.

The data backs this up. According to the Institute for Energy Economics and Financial Analysis, while Australia’s residential solar is sitting at 22 gigawatts, businesses have only installed around 5.6 gigawatts. Estimates vary, but the technical rooftop potential for solar on commercial, industrial and agricultural rooftops could exceed 80 GW.

That’s an opportunity we should miss no longer. Part of the reason that those warehouses with solar panels usually only have a fairly small proportion of the roof covered is that the Small-scale Renewable Energy Scheme (SRES) which has so successfully supported the rollout of residential solar and batteries, currently cuts out at 100 kilowatts. That’s more than enough for houses.

It’s not much when it comes to a factory. Today I announce that we are expanding the solar discount to include installations up to 1 MW in size. This will slash the installation costs for commercial, industrial and agricultural buildings by around 20 per cent.

That’s a significant saving on an investment which will immediately begin lowering the cost of energy. Take for example the installation of a 250kW solar system on a medium sized enterprise, like a retailer. Upfront they could save about $68,000 on installation.

But going forward they’d be generating about 345 megawatt hours of electricity each year a potential saving of $50,000 in annual electricity costs. A larger operation might opt for an 850kW system – that’s enough to support a manufacturing facility, a large retail complex or a logistics warehouse. The upfront discount would be around $232,000.

Each year they’d be generating about 1,173 MWhs, seeing savings of around $175,000 in their energy bills. This isn’t just about energy bills – it’s good for productivity, freeing up capital to invest back in their business. In addition, many businesses have told me that if they are inclined to install large rooftop solar, they have encountered delays in getting their network service provider to approve the installation.

While I understand these can be complex questions that need to be worked through, many of the delays I have heard about are unacceptable and simply make it so hard for businesses to install solar that they just give up. I want to end that road block. So I am also announcing today that I am requesting the Australian Energy Market Commission to consider a rule change to require the network providers to approve commercial and industrial solar much more expeditiously and efficiently than they have been doing.

I look forward to this rule change request receiving positive consideration from the AEMC, and together with our 20 per cent discount on commercial and industrial solar, it could play a significant role in driving Australia’s renewable take-up. Data centres aren’t a challenge to 82%, they’re a pathway to delivery Now, no discussion of Australia’s electricity system and renewable take up would be complete without dealing with the issue of data centres.

The pipeline of data centre investment in Australia is very strong. Westpac estimates that pipeline of data centre investment in our country to be more than $150 billion. There are many reasons for Australia being such an attractive destination for data centre investment.

I make the point in passing that investors in such energy hungry facilities wouldn’t be investing in Australia if they didn’t have confidence in our energy system and our reliable renewable energy. But there is concern in the community that the strong pipeline of data centre investment in Australia might push up prices or put us off track for our renewable energy goals.

I understand those concerns. And absent the right policy response, I would share those concerns. Data centres are huge consumers of electricity.

They are whales. In 2024, data centres in the US consumed as much electricity as Sweden did. The energy market operator, AEMO, tells us that data centres currently consume 2% of our electricity.

They expect that to grow to 6% in 2030 and 10% in 2050. To put those figures in context, 6% is equivalent to the energy use of every home in Victoria. Take the proposed Mamre Road data centre in my own electorate.

About 15 minutes from where I live. It would be one of the biggest data centres in the world. Its peak electricity use would be in line with New South Wales’ current biggest user of electricity: the Tomago aluminum smelter.

Clearly, we have issues to manage. While I share the concerns of those who worry about the energy and water use of data centres, I also see opportunity, as well as challenges. AI and climate change are the defining issues of our age.

The right policy can ensure they each help the other. A hands off, “let her rip” approach on the other hand would be a disaster. We welcome data centre investment.

But only if it is in the best interest of our country. The Prime Minister, Minister Ayres, Assistant Minister Charlton and I are clear about the principles that underpin our approach: data centres are welcome if they bring their own additional renewable energy. In the coming weeks, the Prime Minister will outline more details about our approach.

Many of the building blocks that will complement the national minimum requirements are coming into place. Already, the Commonwealth has worked with states and market bodies on a change to our energy rules to ensure that the costs of connecting data centres to the grid aren’t passed on to households. This proposed rule change will introduce a “causer pays” principle.

If you cause the cost, you will pay the cost. It means that if data centres, and other large energy users, need new or accelerated transmission, they have to foot the bill. This is a forward leaning step - no other country has mandated cost protections for households.

That’s important, but it’s not enough. Last week, we took a crucial next step as the Commonwealth, states and territories agreed on a slate of new measures backed by the energy market rule maker, the AEMC, which I'll take you through today. First, we will use the Renewable Electricity Guarantee of Origin scheme to drive investment in new renewable energy.

The existing Guarantee of Origin scheme tracks and verifies the origin of renewable electricity through digital certificates. Data centres will be mandated through our national AI Standard to get these certificates from renewable energy generators to prove that they are fully offsetting their power use with renewable energy that may not otherwise have been built.

Importantly, this scheme will be flexible - with multiple ways for data centres to meet their obligations to allow the market to determine the lowest cost approach. For example, data centres could sign Power Purchase Agreements or invest in renewable generation directly. An agreement from a proposed wind farm for example that may have received support under the Capacity Investment Scheme or a state scheme and environmental approvals, but has not yet reached final investment decision stage, could qualify as new additional renewable energy.

Secondly, data centres must prove that they have enough firmed power to back them up, strengthening the stability of the energy grid. Similarly to proving where their energy comes from, data centres will have to prove that they have enough firmed, stable energy to cover their load. We are working to ensure large AI data centres work flexibly – by reducing their power consumption when needed to help stabilise the grid.

This can offer important benefits to consumers. And finally, we’re encouraging other measures to strengthen the grid including offering data centres fast tracking options where they can co-locate with existing generation. But I want to be clear - these changes have one key test to meet - we want an energy system that is stronger that doesn’t cost consumers more.

That’s the test we’ve set, and it’s the one we’ll hold to. Because the argument I really want to answer today is a bigger one. Those on both the right and left, and some in the media, have said Australia needs to choose.

Build a renewable grid or build the AI industry. Protect household bills or attract the investment. That something has to give: our targets, household bills, or both.

I don’t accept that. And the evidence doesn’t support it. Data centres need exactly what renewables, backed by storage and gas peaking, deliver.

Power at scale. Power that is stable. Power that isn’t hostage to a fuel price set on the other side of the world.

And renewables need what data centres bring — certainty, investment, and load that can bend when the grid needs it to. So data centres aren't a challenge to 82%. Handled well, they help us get there.

I appreciate states and territories working with us and the AEMC to implement these reforms. Let me blunt though, it was not unanimous at the energy ministers’ council. Let me be equally frank.

While I always prefer to work with my state and territory colleagues, the Commonwealth will not be standing by and letting a race to the bottom of states falling over themselves to attract data centres, at the cost to household bills, reliability or emissions. We will use all the powers available to the Commonwealth, including Commonwealth legislation, to ensure that Australian households and Australian energy reliability is put first: even if some states have different ideas.

At the same time, these new rules will be a national standard. States and territories will be free to add more rigorous requirements if they feel that is appropriate for their circumstances, but not to water them down. COP31 – What happens in the world matters to Australia’s future Now of course, whether it be data centres, the renewable rollout or tackling climate change generally, Australia is not alone in facing the challenges.

As our opponents like to parrot, we are about 1% of emissions. But this year, Australia is stepping up to play a broader role, as President of the Negotiations at COP31, enabling us to guide and steer the conversation about 90% of the world’s emissions. Earlier this year Mark Carney gave a terrific speech, lauded around the world about the role of middle powers in an uncertain time.

Something Australia has been saying for some time. In jointly delivering COP31 with the Pacific, Türkiye and Australia are stepping up to that middle power role in the very best way. Now of course this is particularly important in our region.

The impacts of climate change are the number one, two and three issue for Pacific islands. They look to Australia for leadership, and under this Government, we reciprocate with action. Now this is not without controversy domestically.

But by opposing Australia playing this role, and opposing the hosting of Pre COP in Fiji, our political opponents are making clear they would revert to the Morrison-Dutton tin ear approach to the Pacific’s most defining issue. A few weeks ago the Shadow Minister for Foreign Affairs stood where I am standing today and said: “no matter who is in the government in Australia, we will always seek to be the Pacific’s most trusted partner”.

Well, bluntly, while his Party engages in the politics of delay and denial. While they oppose and mislead about the unparalleled opportunity to lift Pacific issues to the global stage through COP31 and Pre-COP in Fiji, these are cheap and dishonest words. Chairing COP negotiations is never easy.

I have seen that up close and personal in recent years. But it is important. It’s also a remarkable opportunity for our country to tell our story, to attract investment, to build deeper meaningful bilateral links when it’s never been more important.

This year’s COP comes in arguably the most complicated geopolitical environment we have faced in many years. But it also comes at a time when countries around the world have reached the same conclusion as the people of Tarneit, Werribee and Craigieburn as we have all grappled with the Strait of Hormuz energy crisis: good climate policy IS good energy security policy.

Building a reliable renewable energy system is building a sovereign system. The sun can’t be blockaded, the wind cannot be sanctioned. We will be continuing to work with Türkiye, our Pacific family and the broader international community for a good, strong outcome at COP31.

Our preparations are in good shape, and there is real momentum behind the electrification agenda that we and Türkiye have been proposing. Just as we have been catching up as quickly as we can on a decade of denial and delay domestically, so our international engagement has seen Australia moving from being isolated in international climate negotiations to chairing those negotiations.

Ladies and gentlemen. Giving regular and frank updates to the Australian people, including in our annual climate statement to parliament has been an important part of our approach since we took office. When we came to office renewable energy was 33% of our grid.

It’s now 50%. Some elements of our transition are going extremely well. Rooftop solar installations continue to smash records.

Our achievements on batteries, big and small, are genuinely world leading. But there are opportunities in the challenges too, which our Government is seizing: to find ways to make data centres a spur new investment in new renewable energy and to back our businesses and farmers who want to put their roof space to work to reduce their bills and emissions show we will keep the course.

And I know the people of the suburbs like Tarneit and those like it across Australia, are with us on that journey. We acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture. We pay our respects to their Elders past, present and emerging.