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I can't help with the candles, but a few points:Aussiejeff said:"Date 11/12/2006
Author Rod Myer
Source The Age -- Page: B3
The drought is starting to affect the power generating capacity of south-east Australia's hydroelectric power scheme. Snowy Hydro has revealed that dam storage levels have declined to a record low of 17%. River inflows over the past year have been only 25% of the long-term average, although the company does not currently foresee any issues in meeting its commitments in the national power market. AGL Energy, which owns Southern Hydro, has noted that water levels in the Dartmouth and Eildon reservoirs have been affected by the drought, which in turn will have a negative effect on generating capacity, although its contracts are protected by hedging arrangements."
Any tips on companies that might benefit greatly from supply of bulk quantities of candles?
AJ
Dartmouth has lost about one third of its generating capacity due to the reduction in head (water level). That is, it now generates 100 MW (and is doing so flat out) instead of 150 MW.
The Snowy Hydro system hasn't really lost any significant peak generating capacity (peak capacity is 3740 MW) but average output is way down and there is more use of pumped storage (Tumut 3 power station).
In the mainland states, hydro-electricity is a major source of peak generating capacity but coal generates most of the actual electrical energy used with gas taking up almost all of the non-coal or hydro balance (bit of wind, tiny bit of oil is the rest).
So, all it means doing is not running the hydro plants at times if intermediate demand for electricity but instead running them only when demand is highest. That way less water is used but the peak capacity is preserved. Dartmouth and Eildon are exceptions since the water is released primarily for irrigation with electricity only a by-product.
So, no blackouts but more coal and gas gets burnt.
Tasmania is an exception with its baseload hydro-electric system (average output twice that of the Snowy) which supplies virtually all power used in the state and has always done so. Inflows are seriously down as are storage levels (currently 31.3%). The Tasmanian system also supplies 600 MW of peak capacity to Victoria.
If the Tas system runs dry then the lights will go out in Tas and, if it gets hot enough, Victoria as well. But for some time now Tas has been importing about a third of its electricity from Victoria in addition to using gas for another 10% of generation locally in order to slow the fall in storage levels.
So outflows have been cut and the 31.3% storage isn't a serious problem. Most likely it will end up somewhere around 15% by next Winter - makes it difficult to balance water between the storages (since it can't be moved from one to another and there are 6 major and 1 minor catchment areas) but overall it's not a cause for panic. Just a lot of power imported from Victoria and a lot of coal and gas burnt to generate it.
So overall, the bottom line is the lights stay on for the moment at least but more coal gets burnt especially in NSW and also more gas especially in SA, Tas and Vic. If 2007 is a repeat of the weather of 2006 then we could be in trouble however.