How the wind blows: Regulation uncertainty is causing volatility in investment and revenue

Companies in the Wind and Other Electricity Generation industry use a range of renewable inputs, such as wind and solar power, to generate electricity. Major players include diversified gentailers such as AGL, and operators focused on renewable energy, such as Infigen and Tilt Renewables. Many participants have entered the industry over the past decade to address their obligations under the Renewable Energy Target (RET), which has been present in various forms since 2001. The target refers to a mandated share of energy that large energy users must draw from renewable sources of energy generation. The RET has fostered investment and intense competition in the industry over the past five years...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
10.8%
Forecast Growth 18-23
x.x%lock
Profit
x.x%lock
Employment
2,538
Businesses
355
Market Share of Companies

Industry Threats & Opportunities

  • Government incentives to promote renewable energy generation have supported revenue growth
  • Electricity wholesale prices have fluctuated significantly over the past five years
  • Industry profit margins will decline as firms receive lower prices for generation output

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    Industry Report - Industry Key Buyers Chapter

    The Wind and Other Electricity Generation industry exhibits a low degree of market share concentration. In 2017-18, the industry's four largest players are expected to account for under 40% of industry revenue. With the current mix of regulation and policy, many players that are active in other areas of the electricity sector are being compelled to invest in renewable generation. This trend has caused many players to enter the industry through small-scale projects and joint ventures over the past five years. There has also been a trend towards larger projects, particularly as operating, construction and storage costs have continued to decline, which has increased the feasibility of large-scale generation facilities. An ...purchase to read more.

    Additional Insights for the Wind and Other Electricity Generation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wind and Other Electricity Generation Industry are

  • Ability to negotiate successfully with regulators
  • Ability to educate the wider community
  • Economies of scale

    • IBISWorld analysts also discuss how external factors such as Electricity service price and Demand from electricity retailing in the Wind and Other Electricity Generation industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Wind and Other Electricity Generation Industry?

    Industry companies generate electricity using renewable sources of energy such as wind, solar, geothermal, tidal, biomass and other energy sources. The industry excludes the use of small-scale photovoltaic systems, also known as solar panels, which are installed by households.

    Industry Products
  • Wind electricity generation
  • Bioenergy electricity generation
  • Large-scale solar electricity generation
  • Geothermal and tidal electricity generation
    • Industry Activities
  • Wind electricity generation
  • Tidal electricity generation
  • Large-scale solar electricity generation
  • Geothermal electricity generation
  • Bioenergy electricity generation
  • Electricity generation from other renewable energy sources
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Electricity service price
  • Demand from electricity retailing
  • Public concerns over environmental issues
  • Demand from fossil fuel electricity generation

    • Current Performance
  • The wholesale market and electricity prices
  • Investment
  • Energy policy
  • Chart: Revenue Growth

    • Industry Outlook
  • Potential policy changes
  • Investment
  • Table: Wind and Other Electricity Generation Industry Revenue Outlook

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

    • Products & Markets

    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
  • Industrial Machinery Manufacturing
  • Power Automation Products and Other Electrical Equipment Manufacturing

    • Products & Services
  • Wind electricity generation
  • Bioenergy electricity generation
  • Large-scale solar electricity generation
  • Geothermal and tidal electricity generation
  • Chart: Wind and Other Electricity Generation Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Manufacturers
  • Consumers
  • Businesses
  • Utility providers
  • Primary producers
  • Other
  • Chart: Major Market Segmentation for the Wind and Other Electricity Generation Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Depreciation
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Wind and Other Electricity Generation

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wind and Other Electricity Generation Industry

    • Industry Globalization

    Major Companies

    AGL Energy Limited, Infigen Energy, Tilt Renewables Limited,
  • Table: AGL Energy Limited - financial performance
  • Table: Infigen Energy - financial performance
  • Table: Tilt Renewables Limited - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Wind and Other 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

    Key Statistics

    Table: Industry Data for the Wind and Other 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

    Jargon & Glossary

    Bagasse
  • A waste product from sugar cane processing that can be used to generate energy.
    • Biomass
  • Biological material such as wood, sugar cane and municipal waste that can be converted to energy, heat or gas.
    • Gentailer
  • An integrated energy generator and retailer.
    • Gigawatt
  • A unit equal to 1,000 megawatts.
    • Gigawatt Hour
  • The energy that is required to power 10 million 100-watt units, such as light globes, for an hour.
    • Megawatt
  • A unit equivalent to one million watts.
    • Renewable Energy Certificates (Recs)
  • RECs allow particular entities to meet their renewable energy responsibilities and create a second market for industry participants.
    • Renewable Energy Target (Ret)
  • Regulation designed to increase the share of renewable generation in Australia. The current target is 33,000 gigawatt hours by 2020.
    • Roaring Forties
  • Stormy ocean tracts between latitudes 40 and 50 degrees south.
    • 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 Wind and Other Electricity Generation market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Wind and Other 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 Wind and Other 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 Wind and Other 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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