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 Key Buyers Chapter
Historically, the electricity sector (generation, transmission and distribution) was highly concentrated, with effectively one producer or supplier operating in most states. This situation changed substantially in the mid-1990s, when separate power generation, transmission and distribution firms were split from vertically integrated entities owned by state governments. In the past five years, privatisation of assets in New South Wales and consolidation in ownership of Victorian assets has increased market share concentration from low to medium.
Since there is still only limited trade in power between states, due mainly to the limited capacity of transmission system interconnections, it is also important to look at concentration within state markets... purchase to read more