Industry Analysis & Industry Trends
Fossil fuel-fired power stations supply the majority of Australia's electricity, running on black coal, brown coal and (increasingly) natural gas, with limited use of other fuels such as petroleum products. Industry assets represent large capital investments that are operated for the long term. The lack of operational flexibility leaves the industry exposed to change, and the industry has grappled with government intervention and decline trends in demand for centrally generated electricity in the past five years. The outcome has been lower wholesale energy prices, and industry revenue is forecast to contract at a compound annual rate of 2.2%.
There has been significant regulation-induced volatility over the past five years... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry has medium concentration, which has increased over the past five years. Historically, concentration in the industry has been limited by state government ownership of industry assets. In the past five years, major players such as AGL Energy Limited have been able to expand in the industry by purchasing distressed assets from other private sector equity holders, and by taking advantage of privatisation of state assets.
In the next five years, it is likely that concentration will increase further. The New South Wales State Government is currently running a sale process for the Delta Energy business... purchase to read more