Policy alignment
Why co-located generation matters more than it used to
The AEMC finalised its data centre advice to energy ministers on 28 July 2026. It recommended that data centres surrender renewable energy certificates from new additional generation, demonstrate that their demand is backed by new firm capacity, register as market participants, and enter connection agreements that encourage demand shifting and co-location with generation.
A site that can host its own generation and firming on the same title is positioned for that framework rather than exposed to it. Separately, electricity generating works have a clearer rural planning pathway than the data centre use itself, which means the energy component may be able to progress on a different and faster track. That is set out on the planning page.
What the NSW Guidelines ask of the energy component
Principle 3 of the August 2026 NSW Data Centre Guidelines is the most prescriptive thing in the document, and it is where land area stops being an abstraction. Performance measure 13 asks a proponent to contract additional renewable generation in NSW, with:
- a minimum 40% wind component by energy;
- storage of at least 25% of generation capacity, for a four hour duration;
- contracted supply matching average annual demand from the fourth year of operation;
- agreement terms of at least ten years; and
- projects that have not yet reached a final investment decision, so the generation is genuinely additional.
For most sites the binding constraint on that measure is somewhere to put the generation. This holding has the room, on the same title, and on-title solar and storage are additional by definition. The district is also demonstrably wind-viable, which is what the 40% component needs.
This is an obligation, not a windfall
Ten-year offtake agreements over pre-FID generation, with four-hour storage attached, are a material commercial commitment and are not costed anywhere in this pack. The site offers the physical capacity to satisfy measure 13. It has not satisfied it, and presenting proximity to generation as an advantage while passing over the obligation that comes with it is a selective reading a counterparty will notice.
What the Jemena commercial enquiry must establish
The question for Jemena is now specific: at what pressure, flow rate and connection cost could the nearby pipeline support 25 MW, 50 MW, 100 MW or potentially greater generation? Around it sit the pipeline alignment and easement position relative to the developable area; feasibility of a new industrial delivery point at or near Rock Flat; available pressure and permissible delivery volume at the demand profiles above; lateral, metering and regulation requirements; connection cost and timeframe. This is a commercial conversation with the Jemena EGP team, separate from the Before You Dig safety channel.
Gas is a defined feasibility workstream, and a valuable one. It is not one of the four gating questions: the project does not necessarily fail if gas cannot be developed, whereas it almost certainly fails as a 100 MW plus opportunity without grid capacity or diverse fibre. Water now ranks ahead of gas in the feasibility priority list. The Guidelines page sets out that ranking.