Thats what CSIRO’s Paul Holper has told the Herald. He says that big power cuts will come into place unless the Snowy scheme gets the water it needs to operate, whether it be rain, snow or hail. The massive water shortage across NSW is so devastating it will now effect water shortages. The story, written by Paul Sheehan
Coal and hydro power generation require very large amounts of water, and the Snowy scheme depends on it for 86 per cent of its generation capacity.
“Last year we had the lowest snowfall ever recorded. If this happens again we are in trouble,” the source said. He declined to be named because electricity pricing and supply is a politically charged subject.
Prices are already tipped to double in South Australia.
The head of the CSIRO’s Australian climate change science program, Paul Holper, said: “Lack of water could become a problem for power generation.
“You’ve got to find a supply of water to set aside for power generation, but there is already a shortage of water for agriculture. So this is going to become more of a problem.”
The stock market has already sent an alarm signal. The price of electricity futures has almost doubled so far this year.
In January the price of a megawatt hour for delivery to NSW in 2008 was $38. This week the price rose to just over $72, a 90 per cent rise in less than five months. The electricity price in Queensland has more than doubled. The volume of trading in electricity futures has roughly quadrupled this year.
According to a market assessment from the Sydney Futures Exchange, it ranks as one of the biggest commodity price increases ever seen, and is not driven by market speculation but is caused by the convergence of several negative trends, dominated by the water shortage.
If this week’s widespread rains continue, and the drought breaks, a power problem will be averted and the market will stabilise. But Australia is now an advanced economy at the mercy of the weather. Certainty over water supply has gone.
Power stations have a voracious appetite for water, and the shortage is affecting production in NSW, Victoria and Queensland, despite an abundance of coal and gas supplies.

This story uses the following news values:
Impact: There is a strong impact on this story as it affects a significant proportion of the Australian population. The fact that electricity rates could double in price is a scary thought, and one that gives impact.
Timeliness: This story holds plenty of ‘timeliness’ factor: This story comes as we are in the middle of a water crisis
Proximity: The drought affects nearly everyone in Australia so they to could be in the same crisis.
Currency: Australia is going through one of the worst droughts ever and the average man struggles to afford such increases in price.
Proximity: The drought affects nearly everyone in Australia









