Hydroelectricity

Abstract

Government attempts to reform Australia's energy and water sectors in the past decade have occurred during a time ofsustained change in the agricultural industry. The confluence of these factors has heightened demand for limited water resources. Corporatization of publicly owned utilities and the restructure of Australia's electricity industry have introduced a radically new management regime for hydrogenerators. Having renounced their capacity-driven mindset, hydrogenerators are now reluctant to surrender any part of their water allocation unless it is economically attractive to do so. In addition, water reforms have driven a fundamental shift in water management with the requirement for environmental flows and opportunities for water trading. This chapter examines the relationship between the energy and water sectors in the context of the restructured Australian electricity industry.