Renewable Energy in Australia Industry Market Research Report Now Updated by IBISWorld
The energy world faces unprecedented uncertainty. Increased awareness surrounding the impact of climate change and dependence on fossil fuels has prompted policy makers and scientists to rethink their strategies. The Renewable Energy industry has been both a benefactor and victim of these changing tides, as increased investment and support has been offset by delayed implementation and political populism. For these reasons, industry research firm IBISWorld has updated its report on the Renewable Energy industry in Australia.
Melbourne, Australia (PRWEB) September 23, 2012
The energy world faces unprecedented uncertainty. Increased awareness surrounding the impact of climate change and dependence on fossil fuels has prompted policy makers and scientists to rethink their strategies. The Renewable Energy industry has been both a benefactor and victim of these changing tides, as increased investment and support has been offset by delayed implementation and political populism. The Federal Government’s mandatory Renewable Energy Target (RET), which aims to have 20% of the country’s electricity generated from renewable sources by 2020, is a good indicator of its commitment to a clean energy future. However, the economics of coal-fuelled electricity considerably outweigh that of renewables. The introduction of the carbon tax on 1 July 2012 will see the industry benefit from significant assistance in the form of grants and concessions, but still remains at the mercy of its infancy and expensive cost structure. According to IBISWorld industry analyst, Naren Sivasailam, “in the five years leading up to 2012-13, industry revenue is estimated to grow at an annualised 5.6% to total $5.24 billion”. Revenue in 2012-13 is expected to post an increase of 35.2% from the previous year.
Hydropower continues to be the largest source of renewable energy, but has been affected by poor rainfall and drought conditions. “Wind and solar power have exhibited dramatic growth over the decade, but their contribution to overall output remains small”, adds Sivasailam. The Renewable Energy industry has a medium level of market concentration, although there are significant segmental differences. For example, the hydropower segment is highly concentrated, with the two major players, while the wind power segment is more fragmented, with a number of players operating wind farms with medium capacities. The major players in the industry are Snowy Hydro Limited and Hydro-Electric Corporation.
The future prospects of the Renewable Energy industry are inextricably tied to the level of government support and the willingness of end users to wear higher costs. Initiatives such as interest free Green Loans and the Renewable Energy Development Fund aid investment in technology that will eventually make clean energy affordable. However, support from consumers and industry is equally important in setting a precedent for change. The next five years will be critical in determining whether Australia’s abundant natural resources can indeed be harnessed and set a world example for a decarbonised future.
For more information, visit IBISWorld´s Renewable Energy report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry includes establishments that generate energy from renewable natural resources such as sunlight, wind, tides and geothermal heat. It only includes the generation of energy from sources that are inexhaustible and can be replenished indefinitely, unlike fossil fuels such as coal. This industry does not include transmission and distribution of renewable energy.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/9/prweb9928980.htm