Hydroelectricity production in the Australian Alps will face reduced inflows as a result of climate change, due to reduced precipitation and ecological change in the catchment.
Increased frequency and severity of storms and bushfires as a result of climate change may damage hydroelectricity generation and transmission infrastructure.
There is pressure on hydroelectricity companies to transition from traditional hydroelectricity generation to pumped storage hydroelectricity, due to increased demand for energy storage technology as Australia transitions to a higher level of renewable energy. Transitioning to pumped hydro will increase the resilience of hydroelectricity generation as it reduces reliance on inflows.
Development of hydroelectricity in the Australian Alps has had devastating impacts on high country ecosystems. Further environmental degradation of the water catchment will have economic consequences for hydroelectricity generation, the Murray-Darling Basin, and alpine tourism.