Fuelling growth: Electricity price fluctuations have led to surges in revenue

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 6.4% over the five years through 2017-18, to reach $17.4 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 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Government interventions in generation markets have contributed to industry revenue volatility
  • An uncertain regulatory environment has reduced investment in fossil fuel electricity generation
  • Policy changes following the Finkel review could affect fossil fuel generators
  • Industry Report - Industry Key Buyers Chapter

    The industry has a moderate level of market share concentration. AGL Energy, EnergyAustralia, Origin Energy and Stanwell Corporation are expected to account for over 60% of industry revenue in 2017-18. Aside from these players, several smaller scale operators also generate electricity from fossil fuels in Australia. Over the past five years, market share concentration has increased due to the strong growth of AGL Energy and Origin Energy through acquisition activity. The closure of the Hazelwood power station and other coal-fired power stations over the past five years have also increased industry concentration, as baseload power has increasingly been supplied by a smaller number of generators. The...purchase to read more.

    Additional Insights for the Fossil Fuel Electricity Generation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fossil Fuel Electricity Generation Industry 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
  • Finkel review effects
  • 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
  • Natural gas generation
  • Brown coal generation
  • Mixed fuel and petroleum generation
  • Chart: Fossil Fuel Electricity Generation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturers
  • Households
  • Businesses
  • Utility providers
  • Primary producers
  • 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, EnergyAustralia Holdings Limited, Origin Energy Limited,
  • Table: AGL Energy Limited - financial performance
  • Table: EnergyAustralia Holdings Limited - financial performance
  • Table: Origin Energy 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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 can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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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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