Fossil fuel generators are contending with New Zealand's transition to renewable energy sources. Despite this pivot, high wholesale prices have staved off recent revenue declines and provided a welcome relief for generators. Industry revenue has soared 8.3% over the past five years, including 8.4% in 2022-23 alone, reaching $1.3 billion, as profit hits 6.2%. Prices ballooned off the back of lower hydro output, outages and tight domestic gas supply. The Russia-Ukraine conflict has also boosted generation costs, with coal prices through the roof. Industry operators use raw material inputs such as coal, gas or oil to generate electricity. 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.Burnt out: 100% renewable electricity targets are a crude awakening for fossil fuel generators
Table of Contents
ABOUT THIS INDUSTRY- Industry Definition
- Main Activities
- Similar Industries
- Additional Resources
INDUSTRY PERFORMANCE
- Executive Summary
- Key External Drivers
- Current Performance
- Industry Outlook
- Industry Life Cycle
- Supply Chain
- Products & Services
- Demand Determinants
- Major Markets
- International Trade
- Business Locations
- Market Share Concentration
- Key Success Factors
- Cost Structure Benchmarks
- Basis of Competition
- Barriers to Entry
- Industry Globalization
OPERATING CONDITIONS
- Capital Intensity
- Technology & Systems
- Revenue Volatility
- Regulation & Policy
- Industry Assistance
- Industry Data
- Annual Change
- Key Ratios
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Contact Energy Limited
- Genesis Energy Limited
