Australia Thermal Power Market Size (2024 - 2029)

Australia Thermal Power Market Size Summary

The Australian thermal power market is poised for growth, driven by increasing population and power consumption, which are fueling the demand for new power generation capacity. Despite the challenges posed by the phasing out of coal-based thermal plants and the rising competition from renewable energy sources, the market is expected to expand. Natural gas, which holds the largest share in power generation, is anticipated to witness significant growth due to Australia's vast reserves. Regions like Queensland and New South Wales are projected to experience substantial energy demand growth, creating opportunities in the thermal power sector. The construction and planning of several power plants across the country are also expected to contribute to the market's expansion.

While thermal power, predominantly from fossil fuels like oil, gas, and coal, remains a significant part of Australia's electricity generation, its share is expected to decrease as investments in renewable energy increase. The mature phase of coal plants is leading to the decommissioning of multiple coal thermal power facilities. However, government initiatives, including the announcement of new power projects and the underwriting of gas power plants, are set to bolster the thermal power market. Despite the shift towards renewable and green energy, the reliance on fossil fuels for power generation suggests that the thermal power market will continue to grow during the forecast period. The market is moderately consolidated, with major players such as Origin Energy Ltd, Stanwell Corporation Limited, InterGen Services, Inc, EnergyAustralia Holdings Ltd, and AGL Energy Limited playing significant roles.