Fuel to the fire: Policy changes and power station closures have prompted revenue volatility

Operators in the Fossil Fuel Electricity Generation industry have grappled with a changing regulatory environment and volatile wholesale prices over the past five years. Fossil fuel-fired power stations supply the majority of Australia’s electricity. These power plants mainly run on black coal, brown coal and natural gas. Black and brown coal-fired power stations are often run continuously to provide baseload power, while natural gas stations can be fired up quickly to provide peaking power during spikes in demand. Industry revenue is expected to rise at an annualised 7.8% over the five years through 2018-19, reaching $16.7 billion.Fossil fuel electricity generation is a highly emissions-intensive process, which has prompted government intervention in the industry...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • At the federal level, political difficulty has led to several failed attempts to regulate the industry
  • An uncertain regulatory environment has reduced investment in fossil fuel electricity generation
  • Profitability is likely to decline as renewable energy sources gain market share
  • Industry Report - Industry Locations Chapter

    Queensland, New South Wales and Victoria dominate Australia's fossil fuel electricity generation. The importance of these states reflects their large populations, the presence of electricity-intensive industries such as primary metal production and fabricated metal production, and the ready availability of fossil fuels. In Queensland, black coal is the main fossil fuel that is used to generate electricity, while increased production of coal seam gas has also boosted the supply of natural gas for electricity generation.In New South Wales, fossil fuel power generators rely heavily on black coal. The state has large reserves of black coal and is a major producer of steaming coal used for electricity generation. The...purchase to read more.

    Additional Insights for the Fossil Fuel Electricity Generation Industry

    IBISWorld has determined the most important Key Success Factors for the Fossil Fuel Electricity Generation are:

  • Development of a symbiotic relationship with another industry
  • Optimum capacity utilisation
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Electricity service price and Net energy consumption in the Fossil Fuel Electricity Generation industry impact industry performance..

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    What's in this report

    What is the Fossil Fuel Electricity Generation Industry?

    Industry firms use fossil fuels such as coal, gas and oil to drive steam-producing turbines that generate electricity.

    Industry Products
  • Black coal generation
  • Brown coal generation
  • Natural gas generation
  • Mixed fuel and petroleum generation
  • Industry Activities
  • Black coal-fired electricity generation
  • Brown coal-fired electricity generation
  • Gas-fired electricity generation
  • Other mineral-fired electricity generation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Electricity service price
  • Net energy consumption
  • Public concerns over environmental issues
  • World price of steaming coal

  • Current Performance
  • Energy policy
  • Lack of capital investment
  • Rising wholesale prices
  • Demand factors
  • Ownership changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulation
  • Solar installations and manufacturing demand
  • Table: Fossil Fuel Electricity Generation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fossil Fuel Electricity Generation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Electricity Transmission

  • Key Selling Industries
  • Black Coal Mining
  • Brown Coal Mining
  • Investment Banking and Securities Brokerage
  • Oil and Gas Extraction

  • Products & Services
  • Black coal generation
  • Brown coal generation
  • Natural gas generation
  • Mixed fuel and petroleum generation
  • Chart: Fossil Fuel Electricity Generation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial and services
  • Households
  • Manufacturers
  • Mining
  • Utility providers
  • Other
  • Chart: Major Market Segmentation for the Fossil Fuel Electricity Generation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Fossil Fuel Electricity Generation

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fossil Fuel Electricity Generation Industry

  • Industry Globalization
    AGL Energy Limited, Origin Energy Limited, EnergyAustralia Holdings Limited, Stanwell Corporation Limited,
  • Table: AGL Energy Limited - financial performance
  • Table: Origin Energy Limited - financial performance
  • Table: EnergyAustralia Holdings Limited - financial performance
  • Table: Stanwell Corporation Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fossil Fuel Electricity Generation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Fossil Fuel Electricity Generation Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Baseload Power
  • Electricity provided by power stations that run continuously.
  • Gentrader
  • A New South Wales Government sale of long-term supply contracts from state-owned generators to private players.
  • Geosequestration
  • A process of storing carbon dioxide underground, where it reacts with saline water to form non-reactive salts.
  • Peak-Load Power
  • Electricity generation capacity that can be switched on or off to meet seasonal and daily fluctuations in demand.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fossil Fuel Electricity Generation market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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    This report on Fossil Fuel Electricity Generation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Fossil Fuel Electricity Generation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Fossil Fuel Electricity Generation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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