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 Analysis Chapter
The Fossil Fuel Electricity Generation industry's revenue is expected to grow at a compound annual rate of 2.5% over the five years through 2013-14. This headline growth figure obscures how the industry's operating environment has changed in the past five years. Energy demand fell during the global financial crisis and never recovered, as a mix of economic and technical change brought down the energy intensity of the Australian economy. In a situation of excess capacity, policies mandating new renewable generation put further pressure on wholesale prices, which declined. Industry revenue followed suit, trending downwards until the introduction of the Clean Energy Future Plan... purchase to read more