Clean Energy Workforce, Government, Policy, Projects, Transition to Renewables

Industry warns policy certainty key to AI-era energy demands

Industry experts say Australia’s clean energy build-out must accelerate to keep pace with the demands of emerging technology sectors such as artificial intelligence.

Discussions have been held at a high-level Energy and Adaptation Roundtable in Parramatta, chaired by Minister for Climate Change and Energy Chris Bowen and Special Envoy for Climate Change Adaptation and Resilience Kate Thwaites.

They brought together senior figures from government, industry, unions, market bodies and civil society. Participants included the Australian Energy Market Operator, Clean Energy Council, Climate Council, Gas Energy Australia, major business groups and unions.

After the event, Bowen said “getting Australia’s energy transformation right isn’t just critical to unlocking productivity, it will make our economy more resilient and support budget sustainability.”

Technical priorities identified included removing barriers to renewable generation and transmission investment, improving system efficiency through performance incentives, and deploying innovation to enhance grid flexibility.

There was a strong focus on aligning energy policy with the infrastructure needs of high-growth sectors, particularly the rapid expansion of data centres driven by AI and digital industries.

The roundtable examined how data centres could integrate with renewable supply, offering both flexible demand and co-location opportunities for generation.

Stakeholders discussed the role of policy certainty in attracting capital, with consensus that “ripping up targets and derailing the transition won’t see Australia thrive – policy uncertainty would only weaken our position in an increasingly uncertain world.”

Adaptation discussions centred on three themes: identifying and addressing barriers to climate risk management, creating incentives for private investment in adaptation measures, and improving productivity through resilience-building initiatives.

Representatives from insurance, planning, emergency services, and local government highlighted cross-sectoral dependencies and the economic cost of inaction.

The outcomes will be provided to the Treasurer ahead of the forthcoming growth and productivity roundtable.

Thwaites said the meeting underscored “the importance of driving ambitious and achievable climate action” and the need to integrate adaptation planning into the energy transition to ensure long-term economic resilience.

 

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