As Australia accelerates its transition to renewable energy, one source is often forgotten: water power. Hydropower, including pumped hydro energy storage, currently accounts for about 6% of Australia's total electricity generation, according to the Clean Energy Council. Yet it provides a unique combination of reliable baseload power and grid-scale storage that wind and solar cannot match alone.
Hydropower's Current Contribution
Australia has more than 120 hydropower plants, mostly in the Snowy Mountains, Tasmania, and Queensland. The Snowy Hydro scheme alone generates about 4,500 gigawatt-hours annually and can provide up to 2,000 megawatts of peaking power. Pumped hydro projects, such as the Snowy 2.0 expansion, aim to add 2,000 MW of storage capacity, effectively acting as a giant battery.
"Hydropower is the backbone of our renewable grid," says Dr. Sarah Wilson, energy analyst at the Australian National University. "It can ramp up quickly to meet demand and store excess energy from wind and solar."
The Forgotten Role in Firming Renewables
While wind and solar are intermittent, hydropower can fill gaps. The Australian Energy Market Operator (AEMO) estimates that to achieve 100% renewable electricity by 2030, Australia needs an additional 6-9 GW of dispatchable capacity, much of which could come from pumped hydro. Currently, only one major pumped hydro project is under construction: Snowy 2.0, which has faced delays and cost overruns.
Smaller projects are also emerging. In Tasmania, the Battery of the Nation initiative aims to develop 2,500 MW of new pumped hydro. Queensland is exploring similar options. However, environmental concerns and high capital costs have slowed development.
Environmental and Social Considerations
Hydropower is not without controversy. Dams can disrupt river ecosystems and displace communities. The Snowy 2.0 project has been criticized for its impact on sensitive alpine environments. "We need to balance renewable energy goals with protecting our natural heritage," says Greenpeace Australia spokesperson Mark Taylor.
Despite these challenges, hydropower remains essential. The International Energy Agency (IEA) notes that pumped hydro storage is the most cost-effective large-scale storage technology, with a lifespan of 50-100 years.
Policy Support and Future Outlook
The federal government has committed $1.38 billion to Snowy 2.0. State governments are also investing: Victoria recently announced a $500 million fund for new hydro projects. Yet industry experts argue that more streamlined approvals and community engagement are needed.
"Hydropower is a proven technology that can help us decarbonise quickly," says Dr. Wilson. "But we must address environmental impacts and ensure projects are economically viable."
As Australia moves towards net-zero emissions, water power may finally get the attention it deserves, providing a reliable complement to wind and solar in the renewable mix.
