Australia's Victoria backs renewables for data centres

Market: Electricity
22/09/26

Australia's Victoria state government has unveiled a framework under which new data centres would be required to bring their own renewable energy supply and storage, matching new electricity demand with new generation capacity while funding associated connection and network upgrade costs, it announced today.

The measures form part of the state's new Sustainable Data Centre Action Plan, which establishes a dedicated planning framework for data centres and follows an August agreement by the National Cabinet to develop consistent national standards covering the sector's energy, water and land-use impacts. The Commonwealth national artificial intelligence (AI) laws are intended to be legislated by early 2027.

The framework would also require facilities to use recycled or non-drinking water for cooling where available and supports Victoria's legislated renewable energy targets of 65pc by 2030 and 95pc by 2035, alongside energy storage targets of 2.6GW by 2030 and 6.3GW by 2035. The proposal was released by Victoria's Labor government ahead of the state's 28 November election and would not apply retrospectively to applications already under assessment.

Under the plan's "bring your own supply" requirement, data centre operators would be expected to offset actual operational electricity use through investment in new renewable energy generation and storage. The measure is intended to match new electricity demand with new generation capacity rather than drawing on existing supply, the Victorian government said. But detailed compliance, verification and firming requirements are yet to be finalised and will be developed alongside the forthcoming Commonwealth standards.

Victoria has more than 50 data centre projects as of June 2026 and has accounted for around 30pc of the National Electricity Market (NEM) data centre electricity consumption during the July 2025-June 2026 fiscal year, the state government said.

Under the proposed planning controls, data centres would be prohibited on residential-zoned land and subject to a mandatory 150m buffer between facilities and residential properties. The requirement is intended to separate data centres from homes and other sensitive land uses, the state government said.

Data centres would also be prohibited in rural zones unless they are located near infrastructure critical to their operation, including major transmission assets, substations, renewable energy projects, battery energy storage systems and recycled water infrastructure. The restrictions are designed to direct investment towards areas with existing infrastructure while limiting development on productive agricultural land, the government said.

Large-scale generation certificate (LGC) prices rose sharply after the release of the national AI standards framework for consultation on 18 September. The federal government proposed large-scale data centre operators to surrender renewable energy certificates equivalent to their annual electricity consumption. This could create a significant new source of demand for LGCs and renewable electricity guarantees of origin (Regos).

Spot LGCs traded as high as A$8.40/MWh ($5.98/MWh) on 18 September and A$8.50/MWh on 21 September, up from A$7-7.25/MWh on 17 September, recovering from declining prices in previous weeks, according to data compiled by Argus.

By Lawrence Wen

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21/09/26

Turkey lays out Cop 31 ‘action agenda’

Houston, 21 September (Argus) — The head of the upcoming Cop 31 climate summit in Turkey wants the talks to result in new actions to toward electrification, energy efficiency and waste reduction. Cop 31 president-designate Murat Kurum on Monday unveiled new details of Turkey's "action agenda" for the summit, which the country hopes will lead to "measurable, implementable and bankable actions" by Paris Climate Agreement signatories. "We are positioning Cop 31 as an implementation Cop", Kurum said during a UN event at the start of New York Climate Week. The agenda, which he previewed in April, calls for action in four main areas. At the top of the list is a goal of increasing electricity to reach 35pc of global final energy consumption by 2035. It also calls for slashing the projected increase in municipal waste generation by more than half, reducing the energy intensity in buildings by 25pc and increasing the use rate of circular materials to 15pc, all by 2035 as well. If sufficient action is taken across all four areas, they have the potential to reduce global emissions by 8.5bn-10bn metric tonnes, according to Kurum. "This is a very remarkable number", he said. One issue the agenda does not directly touch on is finance, a fact that officials from developing nationals raised following the announcement. The agenda and the Cop must lead to a "meaningful increase in financial resources, technology and technical assistance supporting development in developing countries" said Fitsum Assefa Adela, planning and development minister for Ethiopia, which will host Cop 32. Kurum said a goal of the Cop agenda is to provide developing countries with the opportunity to pursue "green industrialization". Turkey separately launched its Antalya Pledge on AI, with the goal of getting countries to take steps to ensure artificial intelligence is developed in sustainable way but that the technology can also support the development of clean energy. "We must openly discuss AI's growing energy consumption and it is time for governments to start setting the terms", Kurum said. "We expect companies to be transparent about their energy use and to power their operations with clean energy. " IEA tomorrow will launch new report on electrification, looking at how to achieve the 35pc by 2035 goal. It also plans to release future reports related to Turkey's goals for Cop 31. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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World off-track for tripling renewables goal: Irena

21/09/26

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21/09/26

World off-track for tripling renewables goal: Irena

London, 21 September (Argus) — The world is not on track to meet the goal of tripling installed renewable capacity by 2030 set in 2023 at the UN Cop 28 climate summit, according to a report by renewable energy group Irena. Tripling renewable capacity from 2022 to 11TW by 2030 would require adding 1.2TW/yr of capacity each year in 2026-30, up from actual additions of 693GW in 2025, the report found. But if the compound annual growth rate (CAGR) of 15.5pc observed in 2025 is maintained, the world will fall short of its end-of-decade target by 0.6TW. This is a smaller gap than Irena had predicted last year , when it put the gap at 0.9TW. The CAGR of renewables capacity has increased in recent years, to 15.5pc in 2025 from 15.1pc in 2024 and 14.7pc in 2023. Combined with a larger base this has meant exponential increases in capacity. But reaching the target would require accelerating exponential increases, with the CAGR rising to 16.7pc. Three quarters of the capacity added last year was solar photovoltaic (PV), while wind made up most of the remainder, Irena said. Solar buildout has been faster than wind in recent years thanks to fast price drops for components. The technology's scalability has meant distributed uptake is possible, unlike in wind, while in some places permitting procedures are easier for solar than for wind. But the technology's typically lower load factor means the same amount of capacity translates to less energy produced than for other technologies. And all-in costs for solar PV did not fall on the year in 2025, Irena found, despite a 6pc fall in installation costs, as higher financing costs made up for this. Financing costs are now one of the biggest barriers to increasing renewable capacity in developed economies, market participants have said. Financing costs remain "stubborn obstacles," especially in emerging markets and developing economies, Irena said. The Turkish presidency of the Cop 31 summit, to be held in November in Turkey, has made a pledge to increase electricity's share of final energy demand to 35pc by 2035, up from around 20pc today. On 21 September the presidency release more details of the pledge, including "a global mechanism to track progress on electrification," and support for developing countries to access financing. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Indonesia may block RKAB for non-compliant miners

21/09/26

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21/09/26

Indonesia may block RKAB for non-compliant miners

Manila, 21 September (Argus) — Indonesian coal producers that fail to meet their domestic market obligation (DMO) could be barred from operating the following year, as the energy and mineral resources ministry (ESDM) considers tougher sanctions for non-compliant companies. Firms that miss their DMO quotas currently face escalating penalties, starting with an ESDM fine. These can extend to an export ban until the shortfall is rectified, the suspension of mining activities for up to 60 days, and ultimately the revocation of their mining business licence (IUP), an ESDM official told Argus today. The ESDM plans to withhold approval of the work plan and budget (RKAB) for non-compliant firms, it said. Under existing mining regulations, companies must have an approved RKAB for the year to continue operating. Blocking approval would effectively shut down their operations for the following year, the official said. Stricter measures are being considered to ensure sufficient domestic coal supply, particularly as Indonesia curbs output this year, the ESDM said. Rising coal prices have made exports more attractive, especially with the $70/t price cap on DMO coal sales. This has led to critical shortages of higher-grade coal at power plants run by state utility PLN, causing widespread rotational blackouts in parts of the national grid. The government cut coal production this year, setting output at 600mn t for 2026, compared with 790mn t in 2025. The ministry has since allowed companies to revise their RKABs, but with the changes still under review, the new production target remains unclear, the ESDM official said. By Antonio delos Reyes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Territorial risks cloud Mexico’s Centauro expansion

18/09/26

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18/09/26

Territorial risks cloud Mexico’s Centauro expansion

Mexico City, 18 September (Argus) — Territorial risks threaten to delay the second phase of Mexico's Centauro del Norte natural gas pipeline, designed to bring cheaper US Permian basin gas to northwestern power plants, while disparate metrics obscure its rate of progress. Grupo Carso is building the $1.43bn, approximately 442km (275-mile) pipeline across Baja California and Sonora states. The project will supply two of state-owned utility CFE's newest combined-cycle power plants and add generation capacity in a region facing grid constraints. The 72km first phase runs from an interconnection with Sempra's Rosarito pipeline near Mexicali to San Luis Rio Colorado, connecting the new plants to existing infrastructure. Mexicali's 641MW Gonzalez Ortega plant began commercial operations in May. CFE is also developing the 648MW San Luis Rio Colorado plant. Construction of the 365km second phase is not scheduled to begin until early 2027, with completion targeted for December 2028, but market sources doubt that schedule can be met. The expansion would receive Permian gas primarily through the Samalayuca-Sasabe pipeline system and northern cross-border hubs connected to west Texas supplies. The second phase presents territorial risks that engineering alone cannot resolve, Carlos Alberto Torres, a former official at state-owned Pemex, told Argus . These include its proximity to the El Pinacate y Gran Desierto de Altar biosphere reserve, consultations with Tohono O'odham communities along the Sonoyta-Caborca corridor, rights of way across agricultural land near Caborca and Altar, and security conditions affecting workers and contractors. None has been confirmed as currently blocking the project, Torres said, but each could delay construction. Uncertainty has been compounded by the different scopes used to report progress. The energy ministry's 15-year hydrocarbons development plan, released on 7 September, put overall project progress at 7.12pc. Carso filings, meanwhile, showed progress rising from 47pc at the end of the first quarter to 77pc as of 30 June, likely referring only to the first phase. Those figures measure execution of a $47.85mn contract held by Carso subsidiary CICSA rather than the entire project. Carso's filings also vary in describing Centauro as either a two- or three-phase project. Carso has not responded to Argus requests for clarification, while the energy ministry's plan provides little detail beyond funding. "The question is not whether there is money, it is whether we are budgeting for territorial and regulatory risk with the same rigor as capex," Torres said. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Hungary ready to join European power balancing markets

18/09/26

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18/09/26

Hungary ready to join European power balancing markets

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