Industry Analysis & Industry Trends
Fossil fuel-fired power stations supply the majority of Australia's electricity. Fossil Fuel power plants run on black coal, brown coal and (increasingly) natural gas, with only limited use of other fuels such as petroleum products. As these fuel sources indicate, the industry is emissions intensive, and the industry's performance has been strongly affected by government interventions in generation markets in the past five years. 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 vulnerability has been evident in the past five years. In the five years through 2014-15, industry revenue is forecast to contract at a compound annual rate of... purchase to read more
Industry Report - Industry Products Chapter
The main fossil fuels used to generate electricity are coal and natural gas, reflecting the abundance of these fuel sources in Australia. Coal-fired plants dominate electricity production, accounting for nearly three-quarters of the electricity generated from fossil fuels in 2014-15. Coal is considered a base-load form of generation. Plants are slow to start and shut down but cheap to operate, especially if they are close to a captive mine. As such, they tend to run continuously, with electricity supply supplemented by higher cost gas generation according to market demand. Mixed fuel generation is uncommon in Australia, accounting for a small share of revenue... purchase to read more