Amazon's solar powered data centre plunge


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In today's edition:

  • Solar farms to power Amazon's data centre plunge
  • Woodside sweats on North West Shelf conditions
  • Energy security boost for NZ

Making data centres even greater, again

The largest private sector technology investment in the nation’s history should focus energy planners on future demand. Prime Minister Anthony Albanese joined Amazon Web Services (AWS) CEO Matt Garman in Seattle to welcome the A$20 billion investment to expand, operate and maintain data centre infrastructure in Australia.

To support the expanded cloud infrastructure, AWS is investing in three new solar farms in Victoria and Queensland. European Energy will deliver and operate the new projects, with Amazon committing to purchase a combined capacity of more than 170MW.

AWS matches 100% of its electricity consumption with renewable energy across its global operations, including Australian data centres, as part of its plans to achieve net zero by 2040. Already an investor in eight solar and wind projects across NSW, Queensland, and Victoria, when all 11 renewable energy projects are operational they will generate more than 1.4 million megawatt hours of carbon-free energy annually.

"This planned investment deepens our long-term commitment to supporting the growth and development of Australian organisations of all sizes and helping them harness the enormous opportunity that generative AI offers. We’re proud to be expanding our world-class data centre infrastructure, bringing more renewable energy projects online, and supporting the country’s vision to be a global AI leader.” — AWS CEO Matt Garman

Extension for Woodside’s NWS extension bid

Woodside Energy and the North West Shelf Joint Venture continue “constructive consultation” with the federal government over the fine print on running the Karratha gas processing plant until 2070.

“Woodside recognises the importance of the matters being addressed by the proposed conditions of the environmental approval including cultural heritage management and air quality,” the company said in a statement.

The 10-day right of reply to Environment Minister Murray Watts’ conditions for approval expired on Friday. “It’s not uncommon for proponents in this situation to take a bit longer in coming back on those comments,” an unfazed minister said.

The Greens called for the immediate release of the approval conditions to provide the public and Traditional Owners transparency on his decision making and to justify any compromise.

“No easy ticket or carve outs should be offered. It is devastating that so soon after the public elected one of the most progressive parliaments in Australia's history, the new Environment Minister's first act in the job has been approving one of the biggest, dirtiest gas projects in Australia out to 2070 — and is letting them dictate the conditions behind closed doors.” — Greens Environment Spokesperson Sarah Hanson-Young

‘Massive win’ for NZ energy security

New Zealand expanded the permitted voltage range for electricity networks in an effort to boost uptake of rooftop solar, which lags many other countries including Australia. Existing buildings won’t need approvals to install rooftop solar panels and Kiwis who include solar panels in the design of new homes will have their building consent fast-tracked. (RNZ) (NZH)

“Rooftop solar will play a crucial role in supporting energy security and reducing emissions. But our networks need to be able to better support the growing flow of electricity from consumers … That’s why we are expanding the voltage range from +/- 6 percent to +/- 10 percent to manage the changing flow of electricity from rooftop solar and EV charging. This will future proof our electricity system and help electrify the economy.” — Energy Minister Simon Watts

The move followed a new Solar on Farms initiative, which has been described as an “economic slamdunk” with electricity prices climbing, the cost of solar energy systems falling and new government and bank support kicking in. (The Press)

Australia’s average solar system is close to double that of New Zealand, which is partly due to solar installs being spec’d to the size of the export limit, according to cherry orchardist and Rewiring Aotearoa Chief Executive Mike Casey. Arbitrary 5kW export restrictions were based on everyone having solar, but that’s not the reality on New Zealand’s streets.

Expert view

"The networks will scream and shout about too much solar on the network but they're wrong. South Australia didn't start to see problems until they hit three to five times the amount of solar that New Zealand currently has and there are no problems now and some areas are at 70% penetration. New Zealand sits at around 3% and we are also doing this at a time when batteries and EVs are economic and can use a lot of that solar. Also, if the networks are worried about it, they have enough time to sort it out as demand grows.

It's important that the regulator enforce the networks to do what the government has approved in the near future and we'll be keeping an eye on them to make sure it happens. We need them to fast track networks actually approving increased limits to 10kW and would expect all networks have this finished by the end of the year.

It's a massive win for energy security … It's updating the regulations to better align with solar and battery systems being installed in homes and farms now.”

Mike Casey
RewiringAotearoa CEO

Catch up

Capital

Germany’s WestWind Energy and Shell Energy mandated Lazard Australia to sell wind farm developer, WestWind Energy Development amid rising costs. WestWind has historically focused mostly on Victoria but the development pipeline, excluding the battery and transmission projects, is now divided between NSW (38%), Victoria (29%), Queensland (28%) and South Australia (5%). (Ion Analytics) (AFR)

Climate Investment Funds selected seven emerging economies to share US$1 billion to pioneer industrial decarbonisation in the first global concessional finance initiative dedicated to reducing industrial greenhouse gas emissions in developing economies. Critical to the global energy transition, finance will be available for green hydrogen, waste heat recovery, and developing low-carbon steel, aluminum, and cement.

“The global race to decarbonize industry has begun, and emerging markets are out front. Decarbonizing Industry is about more than emissions - it’s about securing long term prosperity and the jobs of tomorrow. And it’s about producing the low-carbon industrial inputs that are urgently needed to expand renewable energy capacity and power the global economy.” — CIF Chief Executive Tariye Gbadegesin

A fall in China’s imports of LNG prompted leading analysts to revise their forecasts, citing US tariffs as having a significant impact on both exports and industrial demand. China’s annual imports of LNG will decline for the first time in three years, according to five analysts, as well as strong domestic and piped gas supply. A decline in imports by the world’s top LNG buyer is likely to drive up global supply and drag Asian spot prices. (Asia Financial)


Projects

Gina Rinehart-backed Vulcan Energy (ASX: VUL) received building permits for a 30MW geothermal power plant and substation to power the Lionheart sustainable lithium production project.

“We plan to produce battery-quality lithium products from the same geothermal brine that is used to produce renewable energy for local use. “Approval of the permit means we are that much closer towards our goal of enabling a long-term transition to renewable energy in Landau and developing a local source of sustainable lithium for the European battery industry.”— Vulcan Energy CEO Cris Moreno

Policy

WA Energy and Decarbonisation Minister Amber-Jade Sanderson released the Draft Guideline on Community Benefits for Renewable Energy Projects, with feedback due by August 4. Actionable insights include a suggested inflation-indexed benefit-sharing range per MW for wind and solar:

  • $500–$1,500 per MW per annum for wind projects
  • $150–$800 per MW per annum for solar projects

Similar to federal Resources Minister Madeleine King’s approach for the east coast gas market review, a select group will be corralled by Environment Minister Murray Watts to reach consensus on federal laws. The Guardian reported Watt was leaning toward pursuing an environmental watchdog and amendments to the EPBC Act in one package. Felicity Wade, the national co-convener of the Labor Environment Action Network, said corporate Australia needed to “leave its bludgeons at the door” as the process started afresh.

Meanwhile, BHP and Rio Tinto’s plans to earn carbon credits by storing carbon in mine waste and producing carbon-neutral diesel from trees environmental projects have been knocked back by federal officials. (AFR)


Regulation

Represented by the Environmental Defenders Office (EDO), community group Lock the Gate commenced legal proceedings to make the NSW Planning Department release correspondence it received from coal company lawyers - after FOI requests were denied. “Our client rejects the Planning Department’s assertion that information shared by coal mining companies with the regulator is subject to professional legal privilege and therefore exempt under the Government Information (Public Access) Act 2009,” EDO Managing Lawyer Rana Koroglu said. Expanding coal mines via modifications means coal mine developers avoid having their plans determined by the Independent Planning Commission, which has serious implications for public participation, EDO said.

“There are 10 coal projects undergoing or awaiting assessment as modifications, and we want to make sure they are subject to the highest level of scrutiny available in NSW. The NSW Government must give full consideration to the impacts large coal mine expansions are having on communities, water, farmland, the environment, and climate and let the public participate in decision-making.” — Lock the Gate Alliance Head of Research and Investigations Georgina Woods

Technology

Victoria’s Minister for Energy and Resources Lily D’Ambrosio opened Australia’s largest hydrogen refueling project and the first public servo to offer renewable hydrogen to commercial trucks and transport. The $61.2 million Viva Energy New Energies Service Station in Corio, Geelong, was funded with $34 million investment from the Australian Renewable Energy Agency and $1 million from the state government’s Renewable Hydrogen Commercialisation Pathways Fund.

The station has a 2.5MW onsite electrolyser, which converts recycled water and renewable electricity into renewable hydrogen. It was designed to refuel 10 trucks or buses in under two hours, with refueling taking around 15 minutes for the average fill. Depending on the vehicle type and load, the average fill will provide a range of between 200-450km.

Climate

The New South Wales Nationals have voted to abandon Australia’s commitment to achieving net zero emissions by 2050 at the party’s weekend state conference in Coffs Harbour, increasing pressure on federal National leader David Littleproud to follow suit. (The Guardian)

A Bonn meeting will examine the state of multilateralism, strained by global conflicts and the US withdrawal from the Paris Agreement, for the second time, under Donald Trump. (The Brussels Times)


People

Kelly O’Shanassy will step down as CEO of the Australian Conservation Foundation. “It’s been an honour to lead this powerhouse organisation and serve Australians who love nature and want climate action. It’s a hard decision to step away — but unlike solar and wind, CEO energy is not renewable, and it’s time for a break,” she said.


Research

In a study of economic and health impacts, the University of Maryland Center for Global Sustainability found rolling back clean energy policies would result in a US$1.1 trillion reduction in US GDP by 2035, a US$160 billion cumulative income loss, and at least 22,800 additional deaths of Americans over the next decade. Even if some of the states were getting gains from the fossil fuel industry, that was offset by losses in clean energy benefits.


Random

The AFR blamed “feeble” renewables for Victoria’s price volatility as gas-powered generation covers for an outage at EnergyAustralia’s Yallourn coal-fired power station amid a cold snap.

What's on

June 17-20
Australia Energy Week

Energy Minister Chris Bowen, Ausgrid CEO Marc England, AEMC Chair Anna Collyer, EnergyAustralia Managing Director Mark Collette, Woodside Energy COO Liz Westcott and NEM review Chair Tim Nelson headline this Melbourne event.


June 24-25
Noosa Power & Energy Conference

Climate Change Authority Chair Matt Kean, Grattan Institute Energy and Climate Change Program Director Tony Wood, Windlab Director of Policy Maggie Shelton and Energy Estate Co-founder Simon Currie are speaking at this new Queensland event.

July 17-18
Carbon Capture APAC Summit

Chevron General Manager of Energy Transition David Fallon, Beach Energy CEO Brett Woods, CarbonNet Project Director Jane Burton, Geoscience Director of Offshore Energy Systems Merrie-Ellen Gunning are among speakers at this event in Melbourne.

July 29-30
Australian Clean Energy Summit (ACES) 2025

AEMO CEO Daniel Westerman, AEMC Chair Anna Collyer, Climate Change Authority Chair Matt Kean, AGL CEO Damien Nicks, Iberdrola Australia CEO Ross Rolfe and Squadron Energy CEO Rob Wheals are among the lineup at the Clean Energy Council’s flagship event in Sydney.

The Energy

The Energy is dedicated to covering the business of energy and in particular the people, capital, projects and emerging technology behind the energy transition.

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