ACCS Weekly Meeting - Guest Speaker

Place: Room 621/622, GP South (Building 78)
Time: Thursday 24 May 2007, 10:30 Morning Tea, 11:00am Seminar

Speaker: Dr Lukas Skoufa, School of Business, University of Queensland

Title: Strategic options facing generation firms in restructured electricity industries: Some implications from recent Australian experience

Abstract:
The research focuses on the strategic options facing generation firms in 'deregulated'/restructured electricity industries that had previously been publicly-owned vertically integrated monopolies. A strategic options framework for generation firms is developed and includes a number of options, with particular emphasis on technology and environmental issues. The electricity generation sectors in Victoria (privatised) and Queensland (corporatised) are used as contexts for the analysis. While the research suggests that regulation and uncertainties because of government policy continue to have significant influences on strategic choices in both jurisdictions, some of the generators in privatised Victoria seem better placed to have a competitive advantage under the present pool-based private-cost regime. Strategies based on technology and operational effectiveness are acceptable within the regulatory framework and have the potential to provide firms with a competitive advantage; this can involve diversification into various locations, plant types, fuels and 'cleaner energy'. Greenhouse emissions are likely to play an increasingly important role in future decisions, and a social-cost based regime is likely to give a competitive edge to newer technologies, for example coal seam methane CCGT technologies in Queensland, at the expense of coal fired generation.