Mr BAYLEY question to MINISTER for ENERGY and RENEWABLES, Mr DUIGAN
Along with the scale and speed of data centre development in Tasmania, people at gobsmacked at their energy consumption. Firmus have announced plans for three new AI factories with a combined energy demand of at least 444 megawatts; that’s about 25 per cent of Tasmania’s power. Tasmania has no binding obligation on companies to make them generate new energy. Firmus’s energy policy says ‘For every one megawatt, we’re building two’; that means building at least 888 megawatts of new generation on‑island. Two of three Firmus developments now have planning approval. Only one of them has an energy agreement and it is short term. Firmus’s development at Bell Bay has just been approved. What is the energy arrangement for this site? Which new additional renewable energy generation projects is Firmus building, when and where?
ANSWER
Thank you, Speaker, and I thank the member for the question and, of course, the interest which exists in this space is topical. As the Premier has mentioned already, we welcome investment here in Tasmania. That is a very positive thing. The new data centre AI factory build out is a very, very large‑scale build out which is happening here in Tasmania, across the country and indeed across the world. There is perhaps the philosophical argument that I think the Greens would like to reduce this to around AI and its uses, but the very fact is that there are investment opportunities and jobs opportunities here, in Tasmania, right now and huge demand. Our job, as government, is to help facilitate that investment in our state for the prosperity that it brings to the people of Tasmania.
It’s very important to also recognise that in Tasmania we have power and have prioritised power for our existing industries, our heavy industries. Noting conversations that are occurring at Bell Bay at the moment, there is no suggestion that it is one or the other; we can have both here, in our state. It is very clearly the expectation not only of the Tasmanian government ‑
Ms Finlay – Only if there’s new generation.
The SPEAKER – Honourable Deputy Leader of the Opposition.
Mr DUIGAN – but of the national Commonwealth Government and, indeed, every state in the country, that new load brings new generation. Here in Tasmania, new load will need to bring new renewable generation and that is very clearly set out. We’re doing work with the Commonwealth around legislation that will be progressed later in the year about how that will be realised.
Ms Finlay – After you’ve given them all your power contracts.
The SPEAKER – Deputy Leader of the Opposition, this is your first warning.
Mr DUIGAN – The Tasmanian government is releasing its draft expectations of data centres and AI infrastructure. So, we are leaning heavily into this. We will ensure that data centres bring not only their own new generation, that they are placed in areas where it benefits the network, that’s important, if there is augmentation required for transmission that that will be at the cost of the data centre and, of course, that there is no negative impact to existing customers. These are the pillars upon which we would see these new investments roll out in Tasmania. As I say, my role, as Energy minister, is to make sure our energy system is in such a position as to be able to supply that and ‑
Dr Woodruff – Well, tell us what you’ve decided.
The SPEAKER – Honourable Leader of the Greens.
Mr DUIGAN – We welcome those discussion.
Supplementary Question
Mr BAYLEY – Look, that was all very interesting, but you didn’t answer the question, minister. You mentioned that there’s a large scale build-out, there’s a huge demand, we completely agree with that. The issue here is that another data factory has just been approved. What is the energy arrangement for the Bell Bay site? Which new additional renewable energy generations is Firmus building – that’s what they say, they’re building – and when and where are they going to build them?
Mr DUIGAN – Thank you Speaker and again I thank the member for the question. Obviously, as you say, it is a large quantum of energy that is required for Firmus. They are having ongoing discussions with Hydro Tasmania about how that energy will be procured –
Ms Finlay – Will the energy be online before the load comes online?
The SPEAKER – Honourable Deputy Leader of the Opposition.
Mr DUIGAN – and of course what the build-out of renewables to support their load will be. Those are conversations as I say that are happening as we speak. As government our job is to facilitate investment in Tasmania. My job as Energy minister is to ensure that our energy system is in good shape, that there is no energy security risk posed to the people of Tasmania through these contracts –
Members interjecting.
The SPEAKER – Order.
Mr DUIGAN – that Hydro might enter into. We look forward to continuing those conversations for this new industry being developed here in Tasmania. We think it’s very important, but we all understand the opportunity –
Members interjecting.
The SPEAKER – The member’s time has expired.
