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 Products Chapter
Once produced, electricity is a homogenous product. The main fossil fuels used to generate electricity are coal and natural gas, reflecting the abundance of these fuel sources in Australia. Coal-fired plants dominate electricity production, accounting for nearly three-quarters of the electricity generated from fossil fuels in 2013-14. The introduction of carbon pricing in mid-2012 is lifting fuel costs and reducing the relative cost advantage of coal. Since coal emits substantially more greenhouse emissions gas than natural gas does, for the same level of power generation, coal will face higher carbon costs.
Black coal generation
Black coal and brown coal are distinguished by differences in their energy and water content... purchase to read more