WSHPDR_2013_Final_Report-updated_version

5.1.1 Australia
Niels Nielsen, International Energy Agency
Hydropower Implementing Agreement
Key facts
Population 22,015,576 1
Area 7,741,220 km 2
Climate Generally arid to semi-arid; temperate
in south and east; tropical in north. 1
Topography Mostly low plateau with deserts; fertile
plain in southeast; 1 A wide variety of
landscapes, with subtropical rain
forests in the north-east, mountain
ranges in the south-east, south-west
and east areas, and a dry desert in its
centre
Rain
pattern
Average annual rainfall below 600 mm
over 80% of the country and below 300
mm over 50% 2
Electricity sector overview
Australia’s primary electricity generation source is
thermal (especially coal), with hydropower providing
the largest renewable component (figure 1). The
installed electricity generation capacity is around 56
GW. The National Electricity Market (NEM) is the
wholesale electricity market and the associated
synchronous electricity transmission grid, serving five
interconnected regions since 1998. These are
Queensland, New South Wales, Tasmania, Victoria
and South Australia. Tasmania, with predominantly
hydropower generation, joined in 2006 when the
undersea Basslink interconnector was fully
commissioned.
Wind
Hydro
Gas
Coal
3%
8%
12%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Figure 1 Electricity generation in Australia
Source: Australian Energy Regulator 3
Note: Data from 2012.
Total annual hydropower output in Australia is
reduced during periods of prolonged drought.
Tasmania accounts for about 30 per cent (2,250 MW)
of the installed hydropower generating capacity in
Australia, and New South Wales accounts for over half
(4,180 MW). The Snowy hydropower scheme, which
has a capacity of 3,800 MW, accounts for around half
of Australia’s total hydropower generation capacity,
but a considerably smaller proportion of energy
generation. Queensland (640 MW) and Victoria (530
MW) contribute to most of the remainder, with very
78%
limited development in Western Australia and South
Australia. 4
Many of Australia’s hydropower stations are over 40
years old and have either been refurbished or are in
need of refurbishment to ensure their ongoing
reliability and availability. Replacement of these aging
assets requires significant capital investment. Loss of
these generators will make the challenge to increase
overall renewable energy generation in Australia even
harder. 4 The commercial decision to invest in these
aging assets must be balanced with the level of
certainty of an ongoing financial return. Renewable
Energy Certificates (RECs) will remain critical in
providing incentives to upgrade and redevelop aging
hydropower plants and ongoing changes to incentive
policies must be positive to maintain investor
confidence and business case for such investments.
It is predicted that while the installed hydropower
capacity will continue to grow, the total contribution
of hydropower as a proportion of Australia’s overall
electricity mix will decrease due to underlying growth
in other energy sources such as gas, wind and solar. 5
Small hydropower sector overview and potential
The oldest operating small hydropower plant in
Australia, Mooring in Tasmania (three units, with each
at 0.2 MW), was commissioned in 1907. Five other
small hydropower plants that are still operating were
built between 1926 and 1928. In the 1950s and the
1960s, four additional small hydropower plants were
built. Only one hydropower plant, which was built in
1960, has been re-commissioned (1983). No
additional information is available on refurbishments
of this batch of very old small hydropower plants.
Between 1983 and 2010, over 50 small hydropower
plants were built, all of which are currently operating.
There are now about 60 small hydropower plants in
Australia with an installed capacity between 0.11 MW
to 10 MW, and a total installed capacity of 172.2 MW
(figure 2). Recently completed plants and plants which
are under construction and have obtained
construction permits, are shown in table 1.
SHP capacity
SHP potential
n/a
172 MW
0 50 100 150 200
Figure 2 Small hydropower capacities in Australia
The low and variable rainfall pattern in Australia and
limited areas of high elevation, combined with high
temperatures and high evaporation rates, result in a
small technical and economic hydropower potential.
Most sites with potential for large-
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