Hydroelectricity: Hydropower in Australia explained

Average customer rating: 4.4/5
Written by Tiana Lee-Collins
Expert reviewed by Meredith O'Brien
Updated 16 February 2026

What is hydroelectricity?

Hydroelectricity, also known as hydropower, water power or hydro energy, is a type of renewable energy technology that converts the energy of moving water into electricity. Hydroelectric power is created when water (typically from reservoirs and dams) is channelled through water turbines. More than 160 countries generate some level of their electricity through hydropower.1

In 2023, hydroelectricity was one of Australia’s top three sources of renewable energy, along with solar and wind.2 Six per cent of all renewable energy generated in Australia in this period was through hydro. 2

Understanding hydropower

How hydroelectricity works

What hydroelectricity is used for

Hydropower, the home and the environment

Is hydroelectricity renewable?

Are hydroelectric dams bad for the environment?

Can I switch my home to hydroelectricity?

Hydroelectricity in Australia

Currently in Australia, hydropower isn’t a main source of electricity, but we still have a number of ongoing hydropower projects.

Hydroelectricity plants in Australia

Pumped Hydro Energy Storage (PHES)

How do PHES systems work?

What are the advantages of hydroelectricity?

What are the disadvantages of hydroelectricity?

Meet our energy expert, Meredith O’Brien

Meredith O'Brien
Head of Energy

As the Head of Energy at Compare the Market, Meredith O’Brien believes in educating Australian customers about the everchanging gas and electricity market so they can adjust their energy usage habits and get the most out of their energy plans.

Meredith has six years within the energy industry, following 15 years of experience in financial services and is currently studying a Master of Business Administration. Meredith is a dedicated customer advocate who is passionate about empowering Australians to find the right products to suit their needs by removing the confusion from comparing.

ARENA – Australian Government. Hydropower/Pumped Hydro Energy Storage. Updated April 2025. Accessed August 2025.
2 Department of Climate Change, Energy, the Environment and Water. Renewables. Updated 2024. Accessed August 2025.
3 U.S. Energy Information Administration. Hydropower explained. Updated November 2022. Accessed August 2025.
4 Snowy Hydro. The Snowy Scheme. Accessed August 2025.
5 AEMC. Tasmania. Accessed August 2025.