Industry Analysis & Industry Trends
Fossil fuel-fired power stations supply the majority of Australia's electricity. These power plants run on black coal, brown coal and natural gas, while other fuels such as petroleum are used less frequently. Industry assets represent large capital investments that are operated in the long term. The lack of operational flexibility exposes the industry to structural and regulatory changes, and industry participants have grappled with government intervention and weaker demand for centrally generated electricity over the past five years. The outcome has been lower production volumes and fluctuating wholesale electricity prices. Overall, industry revenue is estimated to grow at a compound annual rate of 4.3% over the five years through 2015-16, to reach $9.9 billion... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Fossil Fuel Electricity Generation industry is in the mature stage of its economic life cycle. The industry's product is very well-established, having been supplied to markets for more than a century. Production and demand have slowed over the past five years due to rising demand for renewable sources of energy such as hydro-electricity, solar power and wind energy. Nevertheless, electricity generated using fossil fuels remains essential to the entire economy.
Industry value added (IVA) is used to measure an industry's contribution to the overall economy. IVA is forecast to increase at a compound annual rate of 0.8% over the 10 years through 2020-21. Although IVA is growing, the industry is expected to underperform annualised real GDP growth of 2.8% over the same period... purchase to read more