Australia's Energy Minister Asks Regulator to Require Data Centres to Buy New Firmed Power
Published
Australia's energy minister has asked the Australian Energy Market Commission (AEMC), the body that sets the rules for the country's electricity and gas markets, to change those rules. The request would require data centres to sign contracts for new firmed energy. Firmed energy is electricity that is supplied reliably, usually by pairing a source that varies, such as solar or wind, with storage like batteries or with backup power.
The minister has also asked the AEMC to make it easier for data centres to connect to the electricity grid. The proposal would allow them to connect alongside new solar and storage projects. Data centres are large facilities that store and process digital information, and they use a great deal of electricity. Their demand for power has grown quickly in recent years, which has raised questions about how the grid will keep up with it.
The change would be made through a rule change process. This means the AEMC will assess the request, consider the views of industry, energy companies and the public, and then decide whether to change the rules. Any new rules would shape how the data centre industry expands and how new energy supply is built across Australia.
The request reflects a wider effort to balance growing electricity demand with the goal of adding more renewable energy to the grid. Supporters of the approach say it could help bring new generation and storage into the system. The AEMC's final decision will show how these goals are weighed against each other.
Sources: PV Tech
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