Press conference, Perth, WA

MINISTER FOR CLIMATE CHANGE AND ENERGY, CHRIS BOWEN: Thanks for coming, everyone. Thanks for coming out here early this morning in Perth. Two things before I take your questions.

Firstly, I very much welcome today the release by AEMO, our energy market operator, of today’s Electricity Statement of Opportunities. This is an annual report which shows where we need investment in our energy grid. And in many ways, this is the best ESOO, Electricity Statement of Opportunities, we’ve had in many years.

It shows our grid is increasingly reliable. It shows that the investment needed to ensure grid reliability across the National Electricity Market is coming through. In fact, as the report itself shows, nine gigawatts connected in the last 12 months, more than double the connection rate of the year before.

So this is a very strong result. It shows that we need to keep our foot on the accelerator to replace the ageing coal-fired power stations across the country, to ensure not only emissions come down, but grid reliability continues to improve. But what this report shows is a very strong investment pipeline and, in fact, not just an investment pipeline, but investments which have occurred and are being connected.

It shouts out the big connection rate of Cheaper Home Batteries, for example, as helping with grid reliability. It gives a shout-out to the big batteries, with Australia being the third biggest market in the world for big battery deployment after the United States and China, which is no small achievement. So I very much welcome this report.

It shows a strong investment pipeline and it shows that the plan is working as intended. In relation to that, I’m also pleased to announce today the release of the next stage of the Capacity Investment Scheme auction for Western Australia. We are calling for a big investment across Western Australia, more than a gigawatt, which will cater for a million homes.

This is a scheme which will ensure that the investment continues to flow, particularly here in Western Australia. Western Australia’s market works very differently to the east coast, so we have a separate auction to cater for that different Western Australian need. Now, that auction process has been a good one, and I’m sure we’ll get a very strong pipeline of investment coming through in that auction, as we have in previous.

Happy to take questions on that and other matters. JOURNALIST: Are you confident Australia’s energy plan can handle the demands of data centres? CHRIS BOWEN: Yeah, if the policy setting is right.

So the question about data centres is a good one, and the key there is getting the policy settings correct. If we don’t, then the answer to your question is no. But if we do, we can make sure that data centres work in the best interests of Australia and Australians.

That’s why we’re requiring new data centres to bring their own new renewable energy, backed by gas firming. That’s a sensible, common-sense approach. The alternative, which is being promoted by the Federal Liberal Party and the Queensland Government, would see prices go up.

We know in Queensland wholesale prices could go up 13 per cent. Now, we’re against that in the Albanese Government. The Crisafulli Government appears to be okay with that.

But we won’t let it happen, because we will legislate Commonwealth legislation which will apply across the country, which will ensure that those data centres only proceed if they’re in the best interests of our country. JOURNALIST: Where will you bring your resources that will power Australian households, and where will they be? CHRIS BOWEN: Well, there’ll be the sort of investments we’re seeing through the report that’s released today, whether it be large-scale utility solar and wind, or households getting on with the job, as they’re doing in increasing numbers, providing that renewable energy we need.

But data centres can help bring on that investment. If a data centre knows that they need to bring on their own renewable investment as part of their approvals, then they will help those investments become reality. JOURNALIST: The Prime Minister says legislation on minimum AI standards for energy and water will also set conditions for AI training regarding copyright, security and skills development.

Does the Government intend to put all this to Parliament as a single piece, or will it actually split it into multiple parts? CHRIS BOWEN: I believe we’re looking at a comprehensive package for the Parliament. JOURNALIST: On those mandatory standards for data centres around energy, Queensland and the Northern Territory are refusing at this stage to sign off.

You say you would use federal power to override those jurisdictions. How would that work in practice? CHRIS BOWEN: Like all legislation.

Commonwealth legislation which would apply across the country. And the Constitution is pretty clear about, if there’s a dispute between Commonwealth legislation and state legislation, which legislation prevails. JOURNALIST: Will the Government consider other energy sources as energy demand increases?

CHRIS BOWEN: Renewable energy backed by gas peaking. JOURNALIST: There are companies looking to build data centres and want to use nuclear to power them and promise to pay for it themselves. Why wouldn’t we agree with that?

CHRIS BOWEN: Well, I’m not aware of any proposals to do that in Australia. And, of course, it was banned by the Howard Government. And we are focused not on distractions like nuclear, which is the most expensive form of energy and the longest to deploy.

I mean, these data centres are coming now. A nuclear power station takes 20 years. And I see Mr Tehan out there talking about small modular reactors.

There isn’t a small modular reactor operating anywhere in the world outside China and Russia. Nowhere. So this is a pipe dream.

We’re focused on the practical, common-sense reality, which is renewables backed by gas firming. JOURNALIST: What is the difference between having nuclear subs sitting in an inner-city harbour, like Sydney, and having a small nuclear reactor? CHRIS BOWEN: They're very different things.

I mean, a nuclear submarine is not something connected to the grid. My objection to nuclear has never been safety. It has been cost and delay.

JOURNALIST: Have you had any of those conversations with Queensland and the Northern Territory in the lead-up to the National Cabinet? CHRIS BOWEN: I haven’t, personally. They’re pretty firm in their views.

That’s okay. We fundamentally disagree, and we’re not going to let Queensland run a race to the bottom. Queensland doesn’t get to set the policies for the rest of Australia, with all due respect.

Now, they’re taking a very ideological approach. We’re taking a common-sense approach, which will require data centres to work in the best interests of all Australians and all Queenslanders. And their approach would see energy prices in Queensland go up to 13 per cent, because if you’ve got data centres relying on coal and gas at night, that’s going to send up prices for everyone, which is when the pressure really comes on prices – at night.

And also, it’s impractical. I mean, if you want to build a gas-fired power station today, you’re going to wait five years for a turbine. These data centres are being built in coming months and years, not in 10 or 20 years’ time.

JOURNALIST: Is the Federal Government prepared to (inaudible) CHRIS BOWEN: JOURNALIST: And tech giants are thinking of powering data centres with nuclear, would you be okay with that? CHRIS BOWEN: I think I answered that question a minute ago. JOURNALIST: The Prime Minister has indicated that on the proposed rules for AI data centres specifically, will they have to avoid locations near homes, schools, prime agricultural land and protected areas?

CHRIS BOWEN: Yeah. Well, there are swathes of industrial land. I mean, I’m from Western Sydney, where a lot of the data centres pipeline is.

We have the biggest industrial estate in the Southern Hemisphere in my electorate. So inevitably there’ll be data centres in places like that. So siting is important.

But it’s also important to put them close to energy wherever possible too. We’re not building massive new transmission and distribution lines. Of course, one of the elements of our policy is to require the data centres to pay for their own distribution and transmission.

JOURNALIST: Here in Perth, there have been objections to several proposed data centres. I guess there’s a push to have them out in open land spaces in the regions. Would you be open to that?

Would you like to see that? CHRIS BOWEN: I mean, ultimately that comes down to state planning rules. Obviously, data centres need to be in the right place.

I understand community concerns. I have several proposals in my own electorate. I’ll work those through the normal planning system.

From my point of view, the important thing is that they’re close to where energy is produced and, often, that’ll be not in residential areas. JOURNALIST: I was just going to say, do you or any other Ministers have plans to visit Secret Harbour while you’re down? CHRIS BOWEN: No.

Well, I can only speak for myself. I’m here for today. I don’t know about other ministers.

JOURNALIST: The ABC has revealed Chris Jordan, a former KPMG partner who went on to lead the ATO for more than a decade, is alleged to have avoided paying tax during his time. What's your response? CHRIS BOWEN: I haven’t seen the report.

I’m not going to comment. JOURNALIST: I understand Cabinet is meeting later today. Will data centres be on the agenda there?

CHRIS BOWEN: I can’t comment on what’s on the Cabinet agenda. That will get me removed from the Cabinet. Cabinet meetings are confidential.

Anything else? All good? All good.

Thanks for coming out. 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.