Water bills: Regulatory changes have contributed to fluctuating industry revenue

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 8.3% over the five years through 2018-19, to reach $1.2 billion...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 14-19
8.3%
Forecast Growth 19-24
Profit
Employment
1,487
Businesses
27

Industry Threats & Opportunities

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

    The Hydro-Electricity Generation industry is highly capital-intensive. For every dollar spent as wages in 2018-19, an expected $1.03 will be invested in capital requirements. The sheer scale and cost of hydro-electricity assets that are operated in the industry means that capital outgoings tend to greatly exceed wage expenses, even though the industry's average wage is high.The life spans of hydro power plant assets are among the longest in the generation sector. Life spans range from three to 150 years, depending on the plant and equipment. Large initial construction costs, combined with the long useful life of assets, contribute to consistently high depreciation expenses. The industry's capital intensity has remained steady at a high level over the past five years...purchase to read more.

    Additional Insights for the Hydro-Electricity Generation Industry

    IBISWorld has determined the most important Key Success Factors for the Hydro-Electricity Generation 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
  • Energy policy
  • Renewable energy target
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Snowy River expansion
  • 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
  • Commercial and services
  • Households
  • Manufacturers
  • Mining
  • Utility providers
  • 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 (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
    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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