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 - Starting a New Business Chapter
High barriers to entry characterise the industry and this has remained steady over the past five years. Prospective entrants are required to have large amounts of capital and considerable expertise. The scope and timing of state government privatisation programs, the construction of new privately funded power stations and the willingness of incumbents to sell their operations also affect the ability of new players to enter the industry. The current level of generation oversupply is an additional barrier, although future capacity reduction is likely.
The well-established positions of existing companies in the industry represent another entry barrier for potential firms... purchase to read more