Australia to invest billions in hydro plant to stem energy crisis

Billions of dollars will be pumped into a massive hydro-electric project in Australia, the prime minister said Thursday, as the country faces a growing power crisis after a huge blackout and heatwave strained supplies. The expansion of the Snowy Mountains Scheme in New South Wales state could provide electricity to 500,000 homes, which Prime Minister Malcolm Turnbull described as an "electricity game-changer".
The project, involving new tunnels and power stations, would boost the capacity of the 4,100-megawatt hydro-electric plant by 50 percent and is estimated by local media to cost up to Aus$2 billion (US$1.5 billion). "Every Australian should be confident that they can turn the lights on when they need them," Turnbull said in a statement. Although Australia is one of the world's largest producers of coal and gas, there are question marks about its energy security after South Australia suffered a state-wide blackout in September and record-high temperatures in recent months put pressure on supplies in the country's east.
The closure of several ageing coal-fired power plants, strong demand for gas exports and a rise in onshore gas drilling bans have fuelled concerns of a looming domestic energy shortage. "The unprecedented expansion will help make renewables reliable, filling in holes caused by intermittent supply and generator outages," Turnbull said. But Danny Price, a former energy adviser to Turnbull, said while the hydro technology was robust and viable, it would not fix current power woes.