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Australia just allocated billions of dollars into a massive hydro-electric project, the prime minister stated on Thursday as the country faces one of the worst growing power crisis after a vast blackout and heat wave affected supplies.

The development of the Snowy Mountains Scheme in New South Wales State could offer energy to 500,000 homes, which Prime Minister Malcolm Turnbull described as an "electricity game-changer".

The project, involving new tunnels and power stations, would advance the competency of the 4,100-megawatt hydro-electric plant by 50 percent and is estimated by local media to cost up to Aus$2 billion.

"Every Australian should be confident that they can turn the lights on when they need them," Turnbull said in a statement.

Although Australia is one of the world's major producers of coal and gas, there are question about its energy security after South Australia suffered a statewide blackout in September and record-high temperatures in recent months put stress on supplies in the country's east.

The shutting down of numerous ageing coal-fired power plants, adamant demand for gas exports and an increase in onshore gas drilling bans have fuelled concerns of a looming domestic energy shortage.

"The unprecedented expansion will help make renewables reliable, filling in holes caused by intermittent supply and generator outages," Turnbull said.

However, Danny Price, a former energy adviser to Turnbull, said while the hydro technology was stout and feasible, it would not fix current power woes.

"I would describe it as a thought bubble, it will be years before anything happens, This is not a quick fix, this is a much longer-term plan, people should not get carried away because... it's a complicated system (and) a long way off," he told foreign media.

Turnbull on Sunday spoke to US technology giant Elon Musk, the entrepreneur behind electric carmaker Tesla, after he offered to fix South Australia's power crisis with a battery farm.

Musk earlier said on Twitter he could to get the system installed and working in 100 days, or it would be supplied free.

The South Australian government on Tuesday unveiled an Aus$550 million plan that included building a new gas-fired power plant and the country's largest battery to store energy from the wind and sun.

Copyright Business Recorder, 2017

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