Wind and Other Electricity Generation in Australia Industry Market Research Report Now Updated by IBISWorld

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The recently elected Coalition Government has pledged to review the RET target in 2014. For this reason, industry research firm IBISWorld has updated its report on the Wind and Other Electricity Generation industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

With the recent election of the Coalition Government, the industry faces an uncertain policy environment.

The Wind and Other Electricity Generation industry uses a range of renewable inputs to generate electricity. Over the five years through 2013-14, the industry has flourished, with capacity growth supported by multiple government incentives designed to promote renewable energy generation. In the past five years, the industry has expanded at an estimated compound annual rate of 17.3%, to be worth $705.4 million. In 2013-14, revenue is forecast to grow by 4.7%.

IBISWorld industry analyst Caroline Finch states, “A critical factor in industry growth has been 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 generation.” The mechanics of the RET are underpinned by the trading of renewable energy certificates. Under this scheme, technology is adopted according to the lowest cost form of renewable generation. This has fostered intense price competition within the industry and the large-scale expansion of wind energy generation, the most commercial and scalable technology. According to Finch, “The industry now faces a shifting policy environment. The recently elected Coalition Government campaigned on a platform of reviewing the RET target in 2014.” Currently, projects are on hold as the industry awaits confirmation of the new target. In this environment, the dominance of wind in the generation mix and project pipeline is likely to be challenged. Several large-scale solar projects are scheduled to come online in the next five years. These projects have been able to source multiple layers of state and federal funding. The ongoing addition of generation capacity is expected to support industry growth in the next five years.

The Wind and Other Electricity Generation industry has a medium level of market concentration. With the current mix of regulation and policy, many players active in other areas of the electricity sector are compelled to invest in renewable generation. In addition, a number of players operate wind farms with medium capacity. Over the past five years, this has resulted in a large number of players entering the industry through small-scale projects or joint ventures. There is a trend towards larger projects such as the recently complete Macarthur wind farm in Victoria. In the next five years, more large-scale projects are expected to come online, which has the potential to increase market share concentration in the industry. The major industry players include AGL Energy, Infigen Energy, Acciona Energy Oceania and TrustPower. For more information, visit IBISWorld’s Wind and Other Electricity Generation report in Australia industry page.

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IBISWorld industry Report Key Topics

The industry generates electricity using renewable sources of energy such as wind, solar, tidal, biomass and other methods of electricity generation.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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