Minister Ayers Urges Accelerated Action on Australia’s Energy Transition Amid AI Power Concerns
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Industry and Innovation Minister Tim Ayers called for “urgent delivery” on Australia’s energy transition, warning that the country’s ambitions in AI and digital infrastructure could be threatened unless electricity supply and industrial objectives are harmonized, he told SkyNews AM Agenda on Thursday morning.
Ayers emphasized that Australia is at a “critical juncture,” with the world’s accelerating AI-driven demand for energy underscoring the need for rapid expansion of cheap, stable power sources, especially renewables punctuated by strategic use of gas.
“There’s absolute consistency here… We cannot return to the delinquent decade… There needs to be urgency,” Ayers said, referring to previous government policies and the risk of faltering progress in both emissions reduction and industry competitiveness.
Throughout the interview, Ayers positioned the Labor government’s policies as centred on market settings that support industrial users, blue-collar jobs and a future ‘made in Australia,’ contrasting with opposition proposals and emphasizing ongoing Cabinet reviews led by Energy and Resources Ministers Madeleine King and Chris Bowen.
Ayers cited the challenges of integrating renewables, transmission, storage and gas within a system “full of challenge,” likening the current rollout to “building the original Snowy scheme… doing big things for the country”. He warned that “Australia’s natural advantage is coal and gas,” but stressed that “the lowest cost by a country mile is renewables plus gas plus storage”.
“We need to get on with cheap, renewable power, the lowest cost form of power, transmission, storage, gas. These are all part of the story for Australia,” Ayers said.
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The Minister rebuffed suggestions that Australia’s focus on emissions trading and targets was at odds with economic growth and power supply goals, asserting: “It’s completely consistent with our emissions objectives and our industrial objectives, our economic objectives and our objectives about what we’re trying to deliver in industrial regions”.
He also referenced the global context, noting, “We’re different to Finland or the United States… Our natural advantage is coal and gas,” but cautioned against reverting to “the second most expensive form of energy” such as expanded coal-fired power, which he said “nobody wants to build” due to high cost and lack of investor interest.
The interview tackled issues around East Coast gas reservation and opposition to major transmission infrastructure projects, with Ayers expressing concern for blue-collar jobs and the industrial sector’s need for fast access to cheap, renewable power, especially for firms in aluminium and other manufacturing.
“If we’re to achieve our ambitions in terms of industry, in terms of digital infrastructure — which is, as you say, power-hungry — Australia’s natural advantage here is… coal and gas. But the lowest cost is renewables plus gas plus storage,” Ayers said.
He further critiqued those “chaining themselves to bulldozers and trying to stop development in transmission infrastructure and wind generation,” blaming them for making it harder to secure jobs and rapid renewable access. “We’ve got to be responsible. We’re about delivery, they’re about delinquency. That’s the problem here,” Ayers said.
Ayers concluded: “It does require a sense of national spirit and progressive patriotism here,” calling for wide-ranging support for the government’s energy modernization efforts.
He briefly commented on a prior trip to Washington, sharing a positive impression of diplomatic exchanges between Prime Minister Anthony Albanese, former US President Donald Trump, and Ambassador Kevin Rudd, emphasizing a “very warm discussion… prosecuting Australia’s national interest and delivering for blue-collar jobs and future regional industry with a critical minerals deal”.
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