Australia: Renewable Energy Market Research Report
Renewable Energy in Australia Industry Market Research Report Now Updated by IBISWorld http://www.redorbit.com/news/science/1112699124/renewable-energy-in-australia-industry-market-research-report-now-updated/ September 22, 2012 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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