Industry Analysis & Industry Trends
Fossil fuel-fired power stations supply the majority of Australia's electricity. They run on black coal, brown coal and increasingly on natural gas, with only limited use of other fuels such as petroleum products. As these fuel sources indicate, the industry is emissions intensive and its performance is sensitive to carbon pricing policies. Industry assets represent large capital investments that are operated for the long term. The lack of operational flexibility leaves the industry exposed to change. This has been clear in the past five years, as the industry has been buffeted by shifting patterns of demand and regulation.
In the five years through 2013-14, industry revenue has increased at a compound annual rate of 2.5%... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry to the Fossil Fuel Electricity Generation industry are high. In particular, prospective entrants to the industry must have large amounts of capital and considerable expertise to enter the industry. Entry is also limited by the scope and timing of state government privatisation programs, the construction of new privately funded power stations and the willingness of other incumbents to sell their operations.
Until the introduction of the carbon tax on 1 July 2012, uncertainty surrounding the likely form and timing of a system to price carbon also deterred entry. .. purchase to read more