Fossil Fuel Electricity Generation in Australia: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Fossil Fuel Electricity Generation Market Research Report | ANZSIC D2611 | Jan 2015

Powering down: A capacity overhang will cause revenue to decline over the next five years

IBISWorld’s Fossil Fuel Electricity Generation market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Industry Statistics & Market Size
Annual Growth 10-15
Annual Growth 15-20
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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 Investment Chapter

The Fossil Fuel Electricity Generation industry is highly capital intensive. In 2014-15, the industry is forecast to spend $1.67 on capital for every dollar spent on labour. The industry's wages are high, but are dwarfed by the capital value of industry assets.

Individual generating units are large, and additions to capacity are lumpy and may take some years to be fully absorbed by demand. This can mean that growth in revenue lags behind depreciation charges. One measure of excess capacity is the reserve plant margin, which relates generating capacity to maximum demand. Large movements in reserve plant margins can occur, depending on whether generating units are operating, the amount of electricity generated and demand... purchase to read more


Industry ProductsRelated ReportsTable of Contents

What is the Fossil Fuel Electricity Generation Industry?

Firms in this industry use fossil fuels, such as coal, gas or oil, to drive steam-producing turbines that generate electricity.

Industry Products
Black coal generationBrown coal generationNatural gas generationMixed fuel and petroleum generation
Industry Activities
Black coal-fired electricity generationBrown coal-fired electricity generationGas-fired electricity generation

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