Australia Hydropower Market Assessment, By Type [Impoundment, Diversion, and Pumped Storage], By Size [Large Hydropower (Above 30 MW), Small Hydropower (100 kW to 10 MW), Micro Hydropower (up to 100 kW)], By Components [Electromechanical Equipment’s, Electric Infrastructure, Civil Works], By Sector [Public and Private], By End-user [Residential, Commercial, Industrial], By Region, Opportunities, and Forecast, 2016-2030F

Australia has been witnessing significant level of developments in its Hydropower Market. The Australian 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.

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.

In this report, Australia Hydropower Market has been segmented into the following categories: 

1.       By Type

1.1.    Impoundment

1.2.    Diversion

1.3.    Pumped Storage

2.       By Size

2.1.    Large Hydropower (Above 30 MW)

2.2.    Small Hydropower (100 kW to 10 MW)

2.3.    Micro Hydropower (up to 100 kW)

3.       By Components

3.1.    Electromechanical Equipment’s

3.2.    Electric Infrastructure

3.3.    Civil Works

4.       By Sector

4.1.    Public

4.2.    Private

5.       By End-user

5.1.    Residential

5.2.    Commercial

5.3.    Industrial

6.       By Region

6.1.    Western Australia

6.2.    Northern Territory

6.3.    Queensland

6.4.    South Australia

6.5.    New South Wales

6.6.    Victoria

6.7.    Tasmania

Key Players Landscape and Outlook

The Hydropower industry in Australia is experiencing significant growth, causing global companies to prioritize quality and brand positioning to maintain their market share and extend their global reach. These firms invest more resources into research and development, marketing, and expanding distribution networks. Manufacturers actively study consumer behavior to better understand their needs and regularly introduce new products to meet those demands.

In August 2022, Bechtel was selected by BE Power and GE Renewable Energy to plan Big-T, a pumped storage hydro energy project in southeast Queensland, Australia. The project aims to shift Australia's primary electricity source from outdated coal power plants and align with the Queensland Government's goal of 50% renewable energy generation by 2030.

In July 2022, AGL Energy Limited allocated USD 27.7 million for a refurbishment project to improve the Clover hydropower station in Victoria, Australia. The project aims to increase electricity generation by 7% while maintaining water storage levels.

Key players prevailing in Australia Hydropower Market are:

·         Snowy Hydro Limited

·         Andritz Hydro Pty Ltd

·         Toshiba (Australia) Pty Limited

·         Hydro-Electric Corporation

·         Origin Energy Limited

·         AGL Energy Limited (AGL)

·         Greenko Group

·         CleanCo Queensland Limited

·         Pacific Hydro Pty Ltd

·         Bechtel Corporation

Markets and Data reports answer the following questions:

·         What is the current and future market size of the product/service in question globally or specific to different countries?

·         How are the markets divided into different product/service segments and the market size and growth of each segment?

·         What is the market potential of different product segments and their investment case?

·         How are the markets predicted to develop in the future and what factors will drive or inhibit growth?

·         What is the business environment and regulatory landscape specific to the product/service?

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