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 Analysis Chapter
The Fossil Fuel Electricity Generation industry produces electricity for sale into wholesale markets on the east coast and South Australia, Western Australia, and the Northern Territory, using brown coal, black coal, gas and petroleum. The industry's plants provide both base-load power, which is used to meet the bulk of ongoing demand for energy, and fast-dispatch peaking power, to meet demand during sudden spikes. The industry's role within generation markets was stable for decades, but in the past five years, both regulation and demand fundamentals have changed, creating a challenging operating environment. Over the five years through 2014-15, the industry's revenue is forecast to decline at a compound annual rate of 2.2%, to be worth $10.3 billion... purchase to read more