The water shortage across eastern Australia is now so acute it has begun to affect power supplies, and the country is at risk of electricity shortages next year. "I think we are in denial, and are going to have brownouts in NSW if we don't get snow this winter," a source within the electricity market said. 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 news comes amid calls for the Government to adopt a carbon emissions trading scheme. This would have the effect of making alternative forms of energy generation - such as solar, wind and geothermal - more competitive with coal-fired power stations. It would also offer greater certainty to those looking to develop power assets.
Reports that the Government is close to adopting a scheme with nations in the Asia-Pacific region have come under fire, with Labor's environment spokesman Peter Garrett arguing it has come too close to an election to be credibile. It's understood carbon trading will be on the agenda at the APEC summit in September, when the leaders of 21 countries meet over three days.
"Obviously we're open minded about it, but it comes on the back of 11 years of inaction, of denial and of doing nothing on the part of the Howard Government in relation to climate change and global warming,'' Mr Garrett told reporters in Sydney today. "Frankly it comes a little late ... to have a great deal of credibility.''
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