Australia has been witnessing significant level of developments in its Hydropower Market. The Australia hydropower market is projected to reach 507.58 MW by 2030 from 414 MW in 2022 with a CAGR of 2.58%.
Australia has a rapidly growing economy with increasing energy demands. Hydropower helps diversify Australia’s energy mix, reducing the country’s dependence on fossil fuels like coal and oil. By harnessing the power of flowing water, Australia can decrease its reliance on imported energy resources and promote energy security. Moreover, Australia is prone to seasonal floods due to its geography and monsoon climate. Constructing hydropower dams provides flood control measures, regulating the flow of water during the wet season and preventing destructive flooding. Additionally, hydropower reservoirs can be used for irrigation, improving agricultural productivity and water management.
Hume Dam in New South Wales, located downstream from the Murray and Mitta Mitta rivers, captures precipitation in the Australian Alps during winter and spring seasons. It releases stored water to control River Murray flow. The dam also serves as a water source for livestock and households in towns along the Murray River, spanning three states. It also plays a role in flood management and generates hydroelectric power. Hume Dam has facilitated economic development and improved quality of life, augmenting the overall hydropower market in Australia.
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Increase in Focus on Integrated Water Management
The concept of integrated water management has gained traction in Australia. The Australian government has recognized the importance of integrated water management for hydropower to ensure water resources’ sustainable and efficient use. Integrated water management involves considering the multiple water management objectives, including hydropower generation, environmental conservation, agriculture, urban water supply, and ecosystem health.
The Murray-Darling Basin Plan serves the crucial purpose of enhancing the well-being of the Murray-Darling Basin’s ecosystems, floodplains, and water availability for the environment. Its wide-ranging benefits extend to ecosystems, communities, and industries across Queensland, New South Wales, the Australian Capital Territory, Victoria, and South Australia. The Basin Plan ensures responsible water management by establishing regulations on water extraction for various purposes, such as irrigation, urban use, and industry. It also limits future water allocations while prioritizing protecting essential human water requirements, including drinking water. As the focus on integrated water management intensifies, the market growth rate is driven forward, ushering in sustainable water practices for the future.
Government Investment Boosts Technological Advancements
There has been a notable rise in government investment towards technological advancements of hydropower plants in Australia. This increased focus on innovation and development aims to enhance hydropower generation’s efficiency, reliability, and environmental performance. Moreover, technological advancements in hydropower plants, such as advanced control systems and grid integration solutions, help ensure grid stability and facilitate the smooth integration of renewables into the energy system.
Snowy 2.0, an ambitious hydropower project in Australia, is set to transform the renewable energy landscape. With a closed-loop system, this innovative project allows for flexible and responsive electricity generation by reusing water. It efficiently harnesses surplus solar and wind energy to pump water to a higher dam, storing it for later use. Adding 2,000 megawatts of dispatchable power generation capacity and approximately 350,000 megawatt hours of large-scale energy storage to the National Electricity Market promises significant grid stability and on-demand power supply.
Snowy 2.0’s remarkable energy storage capacity can power three million homes a week, showcasing Australia’s government’s investment in hydropower plant technology and accelerating the country’s transition towards a sustainable energy future.
Government Regulations
The government of Australia has implemented several regulations and policies to govern the development and operation of hydropower projects. These regulations aim to ensure the sustainable and responsible utilization of water resources for hydropower generation while considering environmental, social, and economic factors.
Australia’s Renewable Energy Target (RET) is a government initiative with a clear mission: to reduce greenhouse gas emissions in the electricity sector and foster the adoption of renewable and sustainable energy sources. By incentivizing and supporting the expansion of renewable energy production, the RET is paving the way for a greener and more environmentally friendly energy system. The RET operates through a certificate system, encouraging large-scale power stations and small-scale systems to generate certificates for each megawatt hour of electricity they produce. These certificates, known as large-scale generation certificates and small-scale technology certificates, contribute to the country’s renewable energy goals. Within the framework of the RET, Australia leverages a diverse mix of energy sources, including coal and gas-fired power stations, alongside large-scale hydropower facilities and other renewable sources. This comprehensive approach ensures a steady electricity supply to residential and commercial consumers nationwide.
Impact of COVID-19
The COVID-19 pandemic has caused significant fluctuations in electricity demand, affecting revenue streams and the financial viability of hydropower plants. This has led to uncertainties in the energy market, including electricity prices and market demand. These fluctuations can impact the profitability and economic viability of hydropower projects. Additionally, the pandemic has disrupted the construction sector, including hydropower projects, with lockdowns, travel restrictions, and social distancing measures causing delays and project timelines being extended. Despite these challenges, the hydropower sector has demonstrated resilience as a reliable and sustainable energy source, providing baseload power and stability to the grid. Overall, the COVID-19 pandemic has positively and negatively affected the market.
Australia Hydropower Market: Report Scope
Markets and Data has published a comprehensive report titled ‘’Australia Hydropower Market Assessment, Opportunities and Forecast, 2016-2030F’’, which presents a comprehensive evaluation and analysis of the status of the hydropower market in Australia. It comprehensively analyzes the industry’s dynamics, potential growth opportunities, and projected forecasts from 2023 to 2030. Furthermore, the report focuses on key players within the sector, examining aspects such as their business models, market share, competitive intelligence, and other relevant factors.