Heating up: Rising wholesale electricity prices have powered industry revenue growth

Operators in the Geothermal, Wind and Other Electricity Generation industry have faced volatile trading conditions over the past five years. Wholesale electricity prices are expected to surge over the two years through 2018-19, as disruptions to hydro-electricity and natural gas power stations led to much higher reliance on geothermal generation. This significant price growth has contributed to greater profitability across the industry. Overall, industry revenue is expected to increase at an annualised 14.2% over the five years through 2018-19, to $1.2 billion.Electricity generated by industry firms has become increasingly competitive over the past five years...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 14-19
14.2%
Forecast Growth 19-24
Profit
Employment
978
Businesses
39

Industry Threats & Opportunities

  • Wholesale electricity prices are expected to spike over the two years through 2018-19
  • Industry revenue has displayed significant volatility over the past five years
  • Operators will need to make up a shortfall in electricity supply as fossil fuel generation declines
  • Industry Report - Industry Locations Chapter

    The industry's establishments are located in areas that have sufficient resources of geothermal, wind, solar or bioenergy that can be used to generate and distribute electricity. The Bay of Plenty and Waikato regions have abundant resources of geothermal energy, particularly in Taupo, which is located near a volcanic field. Wellington, Manawatu-Whanganui and Southland also operate large-scale wind farms. Smaller wind farms, solar technology and bioenergy facilities are also scattered throughout Auckland, Canterbury and Nelson...purchase to read more.

    Additional Insights for the Geothermal, Wind and Other Electricity Generation Industry

    IBISWorld has determined the most important Key Success Factors for the Geothermal, Wind and Other Electricity Generation are:

  • Availability of resource
  • Having an integrated operation
  • Management of seasonal production
  • IBISWorld analysts also discuss how external factors such as Electricity wholesale price and Net energy consumption in the Geothermal, Wind and Other Electricity Generation industry impact industry performance..

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    What's in this report

    What is the Geothermal, Wind and Other Electricity Generation in New Zealand Industry?

    Industry operators generate electricity using geothermal power plants, solar farms, biomass plants and wind farms. This electricity is sold on the wholesale spot market and transported through transmission lines to network substations.

    Industry Products
  • Geothermal electricity generation
  • Wind electricity generation
  • Bioenergy electricity generation
  • Solar electricity generation
  • Industry Activities
  • Geothermal electricity generation
  • Wind electricity generation
  • Solar electricity generation
  • Biomass 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 wholesale price
  • Net energy consumption
  • Demand from fossil fuel electricity generation
  • Demand from hydro-electricity generation

  • Current Performance
  • Weak demand growth
  • Price growth
  • Renewable investment
  • Transmission charges
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit
  • Renewable targets
  • Tiwai Point closure
  • Table: Geothermal, Wind and Other Electricity Generation Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Mining
  • Electricity Retailing in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Heavy Industry and Other Non-Building Construction in New Zealand
  • Heavy Machinery Repair and Maintenance in New Zealand

  • Products & Services
  • Geothermal electricity generation
  • Wind electricity generation
  • Bioenergy electricity generation
  • Solar electricity generation
  • Chart: Geothermal, Wind and Other Electricity Generation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Industrial firms
  • Households
  • Businesses
  • Agriculture, forestry and fishing firms
  • Chart: Major Market Segmentation for the Geothermal, Wind and Other 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 Geothermal, Wind and Other Electricity Generation

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Contact Energy Limited, Mercury NZ Limited, Meridian Energy Limited, Tilt Renewables Limited,
  • Table: Contact Energy Limited - financial performance
  • Table: Mercury NZ Limited - financial performance
  • Table: Meridian Energy Limited - financial performance
  • Table: Tilt Renewables Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Geothermal, 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
    Table: Industry Data for the Geothermal, Wind and Other 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
    Baseload Power
  • Electricity generators that run continuously to satisfy minimum demand from the wholesale market.
  • Centrally Generated Electricity
  • Electricity generated at large-scale facilities that is sold into the grid.
  • Peaking Power
  • Electricity generators that can be switched on during periods of peak demand.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Geothermal, Wind and Other Electricity Generation in New Zealand 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 Geothermal, Wind and Other Electricity Generation in New Zealand:
    • 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 Geothermal, Wind and Other Electricity Generation in New Zealand 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 Geothermal, Wind and Other Electricity Generation in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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