Australia's energy regulator has admitted an error in its initial assessment of a gas-fired power plant, suggesting the facility's capacity or performance metrics may differ from original projections.
New South Wales' Department of Planning, Housing and Infrastructure has admitted failing to consult key government agencies before setting environmental assessment requirements for a 675 MW gas power plant proposed for Moss Vale. The plant would supply electricity to Cloud Carrier's data centre campus.
In December 2025, the department issued study requirements that the developer must complete before submitting a formal development application. When a community group questioned whether the department had consulted the NSW Environment Protection Authority and Sydney Water, a senior official's letter acknowledged the error and explained the reasoning: the requirements had to be issued quickly and without consultation because the project proponent threatened legal action. Under law, the department had 28 days to issue the requirements from receiving the project description.
The applicant is Nakar Property, parent company of data centre operator Cloud Carrier. A Cloud Carrier representative stated that setting requirements and consulting government agencies falls within the department's remit. The company declined to comment on the legal correspondence, citing confidentiality and legal privilege.
A department representative confirmed the agency failed to consult government bodies before issuing the requirements due to an error. The representative said relevant agencies would be involved during preparation of the environmental impact statement and after submission of the development application. The department did not clarify whether the legal threat influenced its decision to forgo consultations.
At the time—December 2025—regulations required the department to consult relevant government agencies when preparing requirements. This provision was removed from regulations in July 2026.
New South Wales Greens MP Sue Higginson, the party's planning spokesperson, called the situation a serious cause for concern. She argued that involving relevant agencies in preparing requirements is a critically important stage and that delaying consultations risks reducing them to formality.
The project faces opposition in the Southern Highlands region. State Planning Minister Paul Scully noted the power plant remains at an early stage of the process. Australia's federal government has announced plans for legislative restrictions on data centres operating on fossil fuels, while Climate Change and Energy Minister Chris Bowen has indicated that gas generation for grid balancing could be permitted, but data centres must source their own renewable energy.