Hydro-Electricity Generation in Australia - Industry Market Research Report

Circling the Drain: Sinking Wholesale Electricity Prices Have Sparked a Fall in Industry Revenue

Hydro generators are dealing with volatile global and domestic energy markets, which are compelling regulators and governments to step in and stabilise the National Electricity Market (NEM) to ensure a stable electricity supply. Surging input costs are elevating wholesale prices, bolstering hydro generators' profit margins as they don't face the significant coal and gas input costs plaguing other generators. Although hydro technologies are avoiding steep input costs, they are still fighting fluctuating year-to-year weather events, like the La Nina conditions sweeping the eastern coast in recent years. Industry revenue is expected to decline at an annualised 1.9% over five years through 2022-23, including a 12.0% rebound in 2022-23, to $1.4 billion, with profit margins anticipated to reach 15.6%.

Industry firms generate electricity using hydro-electric generation processes. Firms that use pumped-storage generation processes are also included in the industry.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.