‘It’s on me’: Bowen says he won’t shy away from personal responsibility if energy targets are missed

Federal Energy Minister Chris Bowen has issued a very direct warning that the Commonwealth will override any State that tries to run a “race to the bottom” by undermining his plan to make data centres offset their energy use by contributing to renewables.

His clear threat came during a National Press Club address on Wednesday in which he outlined the Government’s plan enforce national firming and cost protection rules.

Despite friction emerging with Queensland and the Northern Territory, which last month voted down plans to mandate that data centres run off renewable energy, Mr Bowen said the Federal Government intended to move ahead.

The Labor frontbencher reminded the hold-out jurisdictions that the “Constitution’s pretty clear” on the matter, warning that a “hands-off, let-’er-rip approach” would end in tears.

“If a government thinks that they’re going to undermine other States with some sort of race to the bottom. We won’t let that happen,” he said.

Mr Bowen said allowing data centres to operate without regulation around their power usage and generation responsibilities would drive up energy bills for local households, undermining both the national interest and that of the resistant jurisdictions.

“Let me be clear on behalf of the Government. We welcome data centre investment, but only if it is in the best interests of our country,” he said.

“Data centre are welcome, if they bring their own additional renewable energy.

“We will use all the power available to the Commonwealth, including Commonwealth legislation, to ensure that Australian households and Australian energy reliability is put first, even if some States have different ideas.”

It hasn’t stopped South Australian Premier Peter Malinauskas from jetting off to the US to woo data centre giants, taking to social media on Tuesday to brag about his tour of Virginia’s mega STACK Infrastructure.

Prime Minister Anthony Albanese laid out plans for Australia to become a future AI hub in a landmark speech last month at the University of Sydney but warned tech giants that access would strictly be on Australia’s terms.

Mr Bowen didn’t shy away from the challenge and insisted the artificial intelligence uptake and climate policy must work hand in hand.

“AI and climate change are the defining issues of our time. The right policy can ensure they help each other,” he said.

Mr Bowen said Australians are “right to be concerned” about high power prices and conceded household bills are “higher than we would like” but promised Mr Albanese would release more details about the Government’s AI and data centre response, including world-first mandated cost protections for households, in coming weeks.

The Australian Energy Market Operator estimates data centres are already accounting for 2 per cent of the nation’s electricity use, with predictions that number will hit 6 per cent by 2030 and 10 per cent by 2050.

Data centres in the United States used the same amount of energy in 2024 as the entire country of Sweden.

“There is a concern in the community that the strong pipeline of data centre investment in Australia might push up prices or put us off track through our renewable energy goals,” Mr Bowen said.

“I understand those concerns, and absent the right policy response, I share data centre are huge consumers of electricity. They are whales.”

He said a continued and “strong pipeline” of data centre investments showed international investor confidence in Australia’s clean energy grid.

Nuclear energy

Mr Bowen also used his address to make it clear that he viewed claims nuclear could lower power prices quickly as “unrealistic” notions from a “fantasy world”.

The Coalition has consistently advocated for removing the moratorium on nuclear power, allowing private investors to determine its viability.

Mr Bowen referenced Peter Dutton’s 2025 Federal election loss after a campaign in which the then-opposition leader championed a nuclear energy policy — which included building seven state-owned nuclear power plants — as having provided a mandate for Labor’s renewables agenda.

“In May last year, they expressed it by rejecting the plan to slow down our transition to renewable energy and wait for the most expensive form of energy, nuclear,” he said.

Slipping energy targets

Mr Bowen says he’ll take personal responsibility if the Government doesn’t reach its 82 per cent renewable energy target by 2030 and refused to answer if the deadline could shift as far back to 2050 if the transition faces heavy delays.

“I believe we can get to 82 per cent if we keep going,” he said.

“I think we can, and whether we will or not depends on whether we keep our foot on the accelerator.”

Mr Bowen said even if Australia only gets to 82 per cent in 2031, instead of 2030, he still would view it as a strong outcome.

“Working to get to 82 per cent by 2030 — that’s our intention. That’s what we’re working towards. Are there challenges and headwinds? Sure.

“If we get to 82 per cent in 2031 and not 2030, that’s still a very good thing.”

The ‘missing middle’ on solar

Mr Bowen unveiled a plan to boost solar panel usage across commercial and industrial businesses as part of Australia’s renewables transition.

He revealed he had requested the Australian Energy Market Commission consider a rule change to require the network providers to fast track approvals for solar.

The minister insisted industrial roof top solar was a missed opportunity in Australia after a surge in household solar.

“The missing middle is mid-scale solar,” he said.

The plan would include factories, warehouses, farming sheds and large industrial premises with the plan to target “big empty roof space ripe for solar generation”.

“The data backs this up. According to the Institute for Energy Economics and Financial Analysis, while Australia’s residential solar is sitting at 22 gigawatts, businesses have only installed around 5.6 gigawatts,” he said.

“In addition, many businesses have told me that if they are inclined to install large rooftop solar, they have encountered delays in getting their network service provider to approve the installation.

“I look forward to this rule change request receiving positive consideration from the AEMC, and together with our 20 per cent discount on commercial and industrial solar, it could play a significant role in driving Australia’s renewable take-up.”

Fuel Supply Coordinator:

Mr Bowen also justified the almost $16,000 per week fuel co-ordinator role given to Anthea Harris after the Iran war prompted distribution issues and prices to sky rocket.

Rather than providing details about her total compensation and extended contract, the Minister handballed the issue to the Prime Minister’s department to answer.

He used the opportunity to spruik the Government’s response to the fuel crisis and hit out at critics who predicted Australia would need to ration fuel supplies.

“Australia has more fuel today than we did when Iran was first bombed,” he said.

“I know the Opposition is disappointed about that. Their breathless scaremongering has been proven to be exactly what it was. “

Upcoming COP in Turkey

Mr Bowen defended his position as President of Negotiations at COP 31, which Turkey will host, and also the lack of world leaders attending the pre-COP events in the Pacific jointly hosted by Australia.

He said the event to put the Pacific’s climate concerns front and centre, including access to finance, while also strengthening diplomatic ties between Australia and the region.

He argued that bringing senior figures to one of the world’s most climate‑vulnerable, least‑visited nations was vital to highlighting rising seas and existential risks for low‑lying islands.

“We want to get more senior people there. I believe we’ll be successful in doing so,” he said.

“We want to use it to elevate the Pacific’s issues. Regardless of the guest list.

“You can’t ignore the Pacific especially on such a fundamental issue such as climate change and expect to be their diplomatic partner of choice.”