Fossil Fuel Electricity Generation in Australia Industry Market Research Report Now Updated by IBISWorld

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Higher prices have been offsetting lower electricity production over the past five years, but demand for electricity is expected to return to growth over the next five years. For this reason, industry research firm IBISWorld has updated its report on the Fossil Fuel Electricity Generation industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Higher prices are offsetting lower production

The Fossil Fuel Electricity Generation industry in Australia is expected to earn revenue of $17.1 billion in 2012-13, representing annualised growth of 4.1% over the past five years. According to IBISWorld industry analyst Caroline Finch, “this reflects the combination of slightly lower output and substantially higher prices over that period”. Industry revenue is expected to expand more strongly in 2012-13, as higher prices (due to the introduction of carbon pricing) more than offset a fall in the amount of electricity generated from fossil fuels.

As Australia does not export or import electricity, the size of the local market matches output. “Generating electricity from fossil fuels is a capital-intensive activity, but the industry employs a substantial number of people”, says Finch. There are about 49 firms involved in the Fossil Fuel Electricity Generation industry and numerous smaller ones that generate electricity for their own use and can also sell power into the public grid. The major players in the industry are International Power (Australia) Holdings Pty Limited, Macquarie Generation, AGL Energy Limited, Delta Electricity and Eraring Energy.

Demand for electricity is expected to return to growth over the five years through 2017-18, reflecting ongoing economic growth and Australia's increasing population. This is expected to support production growth over the five years through 2017-18. Some caveats remain, not least the political uncertainty around carbon pricing with an election due in 2013-14, which could shape policy in this area. Other issues affecting the industry are growing end user electricity prices, as distribution and transmission costs increase the average electricity bill. The rollout of small-scale solar generation among Australian households is another factor likely to limit demand growth, as are ongoing energy efficiency initiatives.

For more information, visit IBISWorld’s Fossil Fuel Electricity Generation report in Australia industry page.

Follow IBISWorld on Twitter:!/ibisworldau

IBISWorld industry Report Key Topics

Firms in this industry use fossil fuel such as coal, gas or oil to drive steam producing turbines that generate electricity.

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 or call (03) 9655 3886.

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