Dam good: Higher electricity prices over the past five years have led to revenue growth

Operators in the Hydro-Electricity Generation industry supply electricity to wholesale markets through hydropower generation assets. State-owned operators, Hydro Tasmania and Snowy Hydro Limited, dominate the industry. Most large-scale hydropower capacity has been established for decades within Australia. As a result, the industry's performance is largely tied to trends in wholesale electricity prices, particularly in New South Wales and Tasmania, where most large-scale assets are located. Most industry activity occurs within the National Electricity Market (NEM), which covers eastern and southern Australia.Industry revenue is expected to grow at an annualised 10.2% over the five years through 2017-18...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
10.2%
Forecast Growth 18-23
Profit
Employment
1,445
Businesses
28

Industry Threats & Opportunities

  • Uncertain energy policy has contributed to significant revenue volatility
  • Wholesale electricity prices have fluctuated substantially over the past five years
  • Stable energy policy is pivotal for the industry’s stability in the long term
  • Industry Report - Industry Locations Chapter

    Hydropower capacity is primarily located in New South Wales and Tasmania. This concentration reflects the scarcity of large water resources suitable for hydro-electricity generation in Australia. Decades after the completion of the Snowy Mountains project and various hydro-electric schemes in Tasmania, these two states remain the primary providers of hydropower in Australia due to the lack of alternative sites. As a result, Tasmania and New South Wales also dominate hydro-electricity production.The lack of other development sites for large-scale generation has kept the distribution of industry activities stable over the past three decades. Ris...purchase to read more.

    Additional Insights for the Hydro-Electricity Generation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hydro-Electricity Generation Industry are

  • Optimum capacity utilisation
  • Ability to accommodate environmental concerns
  • Ability to negotiate successfully with regulators
  • IBISWorld analysts also discuss how external factors such as Electricity service price and Industrial production in the Hydro-Electricity Generation industry impact industry performance..

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    What's in this report

    What is the Hydro-Electricity Generation Industry?

    Industry firms generate electricity using hydro-electric generation processes. Firms that use pumped-storage generation processes are also included in the industry.

    Industry Products
  • Electricity
  • Industry Activities
  • Hydro-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
  • Industrial production
  • Number of households
  • Level of annual rainfall
  • Public concerns over environmental issues

  • Current Performance
  • Revenue and profitability
  • Tasmania and output volatility
  • Carbon tax
  • Renewable energy target
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Snowy River expansion
  • Electricity demand trends
  • Peaking and

    baseload power

  • Energy policy
  • Table: Hydro-Electricity Generation Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Retail Trade
  • Electricity Retailing
  • Consumers

  • Key Selling Industries
  • Heavy Industry and Other Non-Building Construction
  • Heavy Machinery Repair and Maintenance
  • Power Automation Products and Other Electrical Equipment Manufacturing

  • Products & Services
  • Electricity
  • Chart: Hydro-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 Hydro-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 Hydro-Electricity Generation

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hydro-Electricity Generation Industry

  • Industry Globalization
    Hydro-Electric Corporation, Snowy Hydro Limited, AGL Energy Limited,
  • Table: Hydro-Electric Corporation - financial performance
  • Table: Snowy Hydro Limited - financial performance
  • Table: AGL Energy Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hydro-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 Hydro-Electricity Generation Industry
    Includes:
  • 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
    Gigawatt Hour
  • The energy that is required to power ten million 100 watt units, for example light globes, for an hour.
  • Megawatt
  • Equivalent to one million watts.
  • Watt
  • The most basic unit of power, equal to one joule of work per second.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hydro-Electricity Generation market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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
    • Quickly build competitive intelligence
    This report on Hydro-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 Hydro-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 Hydro-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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