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
Annual Growth 13-18
Forecast Growth 18-23

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
  • 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 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
    • 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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