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 Products Chapter
The main fossil fuels used to generate electricity are coal and natural gas, which reflects the abundance of these fuel sources in Australia. Coal-fired plants dominate electricity production, accounting for over 70% of the electricity generated from fossil fuels in 2015-16. Coal is considered a base-load form of generation. Plants are slow to start and shut down but cheap to operate, particularly if they are located close to a captive mine. As a result, they tend to run continuously and higher cost gas generation is used to satisfy peak demand.
Black coal generation
Black coal and brown coal are distinguished by differences in their energy and water content... purchase to read more