Australia Power Market

Australia Power Market Overview:

The Australia power market size reached 277.10 TWh in 2024. Looking forward, IMARC Group expects the market to reach 374.38 TWh by 2033, exhibiting a growth rate (CAGR) of 3.10% during 2025-2033. The Australia power market is driven by increasing renewable energy adoption, rising electricity demand, government incentives for clean energy, grid modernization, battery storage expansion, volatile wholesale electricity prices, phase-out of coal plants, corporate sustainability goals, virtual power plant integration, and investments in hydrogen and other emerging energy technologies.

Australia Power Market Trends:

Transition to Renewable Energy Sources

Australia's efforts to curb greenhouse gas emissions have resulted in a significant turn towards renewable energy. Renewable sources of energy such as solar, wind, and hydroelectricity contributed around 35% of the country's electricity output as of 2023. The move is motivated by environmental objectives as well as the declining cost of renewable technology. For example, the Australian Energy Statistics reported that renewable energy sources have accounted for an estimated 95,963 GWh, representing 35% of Australia's total electricity output in 2023. The Australian Renewable Energy Agency (ARENA) has been instrumental in supporting this shift, funding numerous projects aimed at integrating renewables into the electricity system. These efforts encompass extensive solar power plants, energy storage systems, and projects focused on producing green hydrogen. For instance, ARENA has pledged to numerous projects, with investments amounting to billions of dollars, to promote the use of renewable energy technologies more rapidly. Furthermore, the Australian Energy Market Operator (AEMO) identified the requirement of significant investment in grid assets in order to ensure the variability in renewable sources.

Changing Regulatory Landscape

The regulatory framework has a considerable influence on Australia's power market. New policy changes, as proposed by the Australian government to reach net-zero emissions by 2050, have affected energy consumption and production trends. The State of the Energy Market report of the Australian Energy Regulator identified that high inflation and increasing network investment expenses might add to the imminent issues of high energy prices. The Australian Energy Market Operator (AEMO) has also been at the forefront of implementing efforts to drive grid reliability and security. This involves the addition of renewable energy sources and the formation of energy storage solutions. Nevertheless, the AER cautioned that high inflation and increased network investment expenditure may exacerbate the near-term issues of inflating energy prices. Moreover, the shift to cleaner energy sources and the changing regulatory environment are decisive drivers of the Australian power market.

Australia Power Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on generation source.

Generation Source Insights:

• Power Generation Source 
  • Coal
  • Natural Gas
  • Oil
  • Renewables
  • Others
• Power Transmission and Distribution

The report has provided a detailed breakup and analysis of the market based on the generation source. This includes power generation source (coal, natural gas, oil, renewables, and others) and power transmission and distribution.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Power Market News:

• January 2025: The Australian Energy Market Commission (AEMC) has reached a final decision that will enable virtual power plants (VPPs), commercial and industrial demand response, and consolidated batteries to directly compete with conventional power stations in Australia’s energy market starting in May 2027.
• December 2024: The Energy Market Commission in Australia approved an accelerated smart meter rollout to be completed by 2030, aiming to bring about cost savings for customers and support a data-enabled energy system. The new rule includes customer safeguards such as prohibiting upfront costs before smart meter installation, requiring explicit informed consent for tariff changes, and improving customer understanding of their electricity usage.

Australia Power Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia power market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia power market on the basis of generation source?
• What are the various stages in the value chain of the Australia power market? 
• What are the key driving factors and challenges in the Australia power market?
• What is the structure of the Australia power market and who are the key players?
• What is the degree of competition in the Australia power market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia power market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia power market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia power industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.