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 - Industry Investment Chapter
The Fossil Fuel Electricity Generation industry is highly capital intensive. In 2013-14, the industry is forecast to spend $1.68 on capital for every dollar spent on labour.
Individual generating units are large and additions to capacity are 'lumpy' and may take some years to be fully absorbed by demand. 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 the level of demand... purchase to read more