Heat wave: As operators shift away from coal toward natural gas, profitability will rise

The Thermal Power industry experienced volatile revenue over the past five years due to the scale-down of coal power generation and the phasing out of coal power. However, provincial regulatory agencies offset the decline in consumption with favourable rate hikes. The number of coal plants will likely further contract as demand for thermal energy continues to decrease over the year. While rate hikes are also expected to moderate, this is not expected to prevent industry contraction. Over the next five years, thermal power generation is forecast to decrease as a result of the continued scale down of coal power generation...read more.

Industry Statistics & Market Size
Revenue
$16bn
Annual Growth 13-18
1.7%
Forecast Growth 18-23
Profit
Employment
12,782
Businesses
48

Industry Threats & Opportunities

  • Rising prices of electricity in downstream markets alongside increases in demand have helped further rises in industry revenue
  • Government regulations and high capital costs forced some smaller operators to exit this industry
  • Smaller municipal power generators will have difficulty operating in this industry
  • Industry Report - Starting a New Business Chapter

    Prospective entrants to the Thermal Power industry in Canada endure very high barriers to entry. This industry is very capital-intensive, mostly due to power plant construction costs, which run into the billions of dollars. Most major players are Crown corporations owned by provincial governments, or large integrated energy companies with considerable financial resources. Even small local operators are primarily owned and funded by regional governments.New entrants must also navigate extensive government regulations on construction permits, environmental protection, electricity prices and other factors. Government regulations contribute to high start-up costs, further providing an entry barrier to prospective companies. In ...purchase to read more.

    Additional Insights for the Thermal Power Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Thermal Power Industry are

  • Ability to accommodate environmental requirements
  • Ability to negotiate rate increases
  • Access to power grid
  • IBISWorld analysts also discuss how external factors such as Electric power consumption and Price of electric power in the Thermal Power industry impact industry performance..

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    What's in this report

    What is the Thermal Power Industry?

    The Thermal Power industry in Canada comprises nuclear power plants and fossil-fuel power plants, such as coal and natural gas. Biomass power, which also uses thermal energy, is considered a renewable energy source and not included in this industry.

    Industry Products
  • Coal-fired electricity
  • Natural gas-powered electricity
  • Nuclear power
  • Industry Activities
  • Generating electricity through nuclear power plants
  • Generating electricity through coal power plants
  • Generating electricity through natural gas power plants
  • Generating electricity through other fossil-fuel power plants
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Electric power consumption
  • Price of electric power
  • World price of steaming coal
  • World price of uranium
  • World price of natural gas

  • Current Performance
  • Commodity prices and power generation
  • End-use electricity price and demand conditions
  • Profitability growth
  • Trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Power generation
  • Profitability and industry structure
  • International trade
  • Table: Thermal Power Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Thermal Power Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Electric Power Transmission in Canada
  • Manufacturing In Canada

  • Key Selling Industries
  • Coal Mining in Canada
  • Engine & Turbine Manufacturing in Canada
  • Gasoline & Petroleum Bulk Stations in Canada
  • Gasoline & Petroleum Wholesaling in Canada
  • Heavy Infrastructure Construction in Canada
  • Natural Gas Distribution in Canada
  • Oil Drilling & Gas Extraction in Canada
  • Transmission Line Construction in Canada

  • Products & Services
  • Nuclear power
  • Natural gas-powered electricity
  • Coal-fired electricity
  • Other
  • Chart: Thermal Power Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential
  • Industrial
  • Commercial
  • Exports
  • Chart: Major Market Segmentation for the Thermal Power Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesDepreciationWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Thermal Power

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Thermal Power Industry

  • Industry Globalization
    Ontario Power Generation, TransCanada Corporation, SaskPower, Bruce Power, TransAlta,
  • Table: Ontario Power Generation - financial performance
  • Table: TransCanada Corporation - financial performance
  • Table: SaskPower - financial performance
  • Table: Bruce Power - financial performance
  • Table: TransAlta - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Thermal Power Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Thermal Power Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Thermal electricity generation (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Clean Coal
  • Technology that reduces the emissions from the burning of coal.
  • Crown Corporation
  • Businesses or enterprises owned solely by the federal or provincial governments.
  • Joule
  • The amount of energy required to produce one watt of power for one second.
  • What Our Customers Say

    Why buy this report?

    The Thermal Power market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Thermal Power:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Thermal Power market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Thermal Power, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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