Current State of Sustainability in the Australian Energy Industry - Case Study Example

THE AUSTRALIAN ENERGY INDUSTRY Student’s name Course &Code Professor’s name University City Date The Australian Energy Industry Introduction Australia enjoys a significant benefit of the abundant and diverse energy resources. The energy industry is ranked the ninth largest globally with a three net energy exporter. As such, the industry has led to economic prosperity in Australia in the recent past. Essentially, between the years 2011-2012 the energy sector contributed to the 25% of the total export value. Additionally, the industry provides employment opportunities to a large population of the Australian citizen. (Carson & Bradshaw 2013) confirms that the industry has aided in rapid growth of the infrastructures in the country. Simply put, the Australian energy industry in particular has a pivotal role in economic growth of the country. It has significantly contributed to economic transmissions in the recent. In effect, the ministry of electricity and energy has provided financial support to help sustain this industry since it is an economic booster. Despite playing a pivotal role in the economic growth of Australia, the energy industry according to Carson & Bradshaw (2013) causes varied climatic changes in the country. Various climatic changes caused by the emissions from this industry portray various challenges and implication to the economic existence of the industry. Natural environment support almost all creatures in the world, in effect, factors that cause climatic changes pose short, medium and long term implications on life existence and the future sustainability of the energy industry in Australia. As such, this retrospect paper seeks to extensively discuss various strategic and climatic challenges that affect the energy industry, their implications and solutions. The Current State of Sustainability in the Australian Energy Industry Population growth in relation to energy consumption is a significant determinant of current and future sustainability of the energy industry as concluded in the study by (Rae 2012). Climatic changes directly affect existence of this vital energy that supports almost everyone in Australia. Essentially, just like any other business, the Australian energy industry has placed various considerations to help sustain its current and future existence. Firstly, the industry according to (RSERPP 2012) has invested in reduction of greenhouse emissions by introducing energy targets. Greenhouse gas emissions pose a threat to human existence since their health is put at stake. Secondly, (Passey 2015) concludes that the Australian energy industry has streamlined the process involved in planning and the approval of sustainable energy projects among all jurisdictions. The Australian energy after noticing widespread information from other associates that contribute in energy production, it decided ease project implementations. Consequently, other organs such as Wind Energy Association have an easy time in initiating any programs. This has ensured industrial sustainability as explained by (Brussels 2012) since it has a variety of other related energy production plants. Given that the industry is a top economic contributor to the economic stability of Australia, it has to prove its business stability. As a result, existence of various energy generation plants will help the industry to continue functioning even in diverse climatic changes like lack of water. Thirdly, the industry according to (Brussels, 2012) has ensured existence of appropriate and economic incentives. Despite fully governmental support, the industry has other economic investments. The investments help in diverse periods such as delayed governmental economic disbursement. These initiatives help the industry to run continuously without breaking down due tom lack of capital. Essentially, unplanned climatic changes that tend to cause long term implications are handled properly since the industry has enough funds. Evidently, according to the study done by (Brussels 2012), the Australian energy industry proves present and future economic sustainability. It has economic incentives that help during emergencies Fourthly, the Australian energy industry in regard to (RSERPP 2012) has decided to change the national electricity code to help ensure proper electricity consumption. Essentially, changing electricity code will help reform and restructure the energy industry. Consumption will be effective and there will be no power losses. Electricity supply will be done properly and every citizen will receive and use it in the best way. The last aspect that explains business sustainability of the energy industry in Australia is existence increased efforts in public awareness about the role of energy industry as concluded by RSERPP (2012). The general public is being educated about the importance of using electricity and other related products from the Australian energy industry. Additionally, the role that the industry plays in economic growth of Australia is openly disclosed to the Australian citizens. This is done to ensure proper used and creativity in the industry. The general public is educated about using renewable sources of energy to help reduce environmental pollution (RSERPP, 2012). Strategic Challenges to the Sustainability of Australian Energy Industry in relation to Climatic Change In a competitive business environment climatic change plays a pivotal role in its existence. Essentially, climatic changes determine the viability of a specified industry. In this regard, the Australia energy industry depends large on the climatic conditions. As such, climatic changes can affect the strategic plans that are made by the industry. Climate change varies from existence of high temperatures, rise in sea levels, melting of the ice and other extreme weather events as explained by Finley & Schuchard (2013). The Australian energy industry has various stipulated strategic plans that are geared in the improvement of its services to its clients globally. However, diverse climatic changes such as rise in temperature affect the sustainability of this industry as concluded by Finley & Schuchard (2013). A large part of Australian energy industry plants depends on water for production of electricity. In effect, low levels of water will directly reduce the amount of energy produced in the industry. As such, business sustainability of the energy industry is put at risk during extreme dry seasons. Its future plans might be altered greatly by existence of high temperatures which reduce a fundamental mental source of raw material for energy production. Climatic changes also increase demand and consumption of energy in Australia as explained by DiMatteo (2013). Specifically, during cold seasons, the level of energy consumption rises. Low temperatures calls for installation of air conditioners in residential houses, offices and schools to help regulate heat as concluded in the study done by DiMatteo (2013). Consequently, the amounts of electricity consumed increases significantly since these equipments might function for 24 hours. As a result, the demand of electricity shoots posing a challenge of supply to the industry. Such climatic changes affect the sustainability and the strategic plans set for the industry since they come abruptly. Porter& Kramer (2012) emphasizes that workforce safety and security is endangered by various climatic changes. Adverse weather conditions hinder various workers working on energy plant. Low temperature might affect the heath of the worker working in this industry. As a result, there will be low output in the industry. Essentially, safety and well being of workers has to be prioritized by any company that needs to realize maximum output. Despite the efforts made by Australian energy industry to cater for the welfare of the workers, some climatic changes become extreme. These changes become very hard to control and the security of the workforce is endangered as explained by Porter& Kramer (2012). As a result, the industry faces strategic challenges in caring for its workers during diverse climatic changes. At the end the sustainability of current and future existence of this business is put at stake. The last strategic challenge that affects the sustainability of Australian energy industry as explained by (Finley & Schuchard 2013) is strategic diversifications which are altered by climatic changes. Evidently, normal customer services are interfered with through alterations of future industry’s plan by climatic changes. The energy industry relies solely on customer consumption. In this regard, the industry will not be able to properly operate properly since customer demands will be lowered. Consequently, future strategic plans will not be accomplished properly. This will be caused by lack of enough capital caused by diverse climatic changes. Major Stakeholders Involved in Australian Energy Industry and their Roles The measure and breadth of various businesses involve variety of stakeholders in their operations. According to (Energy Industry 2015) stakeholders play a pivotal role of ensuring business sustainability and proper market availability. As such, the Australian energy industry has various stakeholders that contribute to its normal daily operations. These stakeholders have various roles that they play in the industry. Some of the stakeholders in the Australian energy industry include but not limited to the following. Firstly, the customers are a pivotal stakeholder in the energy industry as shown by Energy Industry (2015). The company is committed at ensuring that the customer needs are catered for accordingly. In return, then customers play a pivotal role of ensuring that the industry runs. They have to purchase the services or rather energy from this industry. Consequently, the money got from the customers is used as capital to run the industry. Evidently, according to (AEMO 2015) the industry cannot run without the customers. The second stakeholder in the Australian energy industry is the general public as concluded by AEMO (2015). The third stakeholders in this industry are the investors as explained by Energy Industry (2015). Investors help to boost the industry economically for proper operations. They help finance several industrial developments that are geared to improvement of service delivery to the clients. Investors provide financial support to Australian energy industry to help in its growth. Evidently, the industry has rapidly grown due to the efforts made by these investors. There is enough capital; to start new energy plants in the country as shown the studies by Energy Industry (2015). The fourth stakeholders in the energy industry in Australia are the Australian Renewable Energy Regulations Council (ARERC). The council stipulates out various rules and regulations that aid in proper functioning of the industry. It gives out regulations on how energy has to be used and supplied in various destinations. It gives out environmental pollutions caused by the industry and provides advice on what to be done to reduce pollution that lead to climatic change. Fifthly, Australian energy industry considers business partners as their stakeholders as done by Energy Industry (2015). Essentially, business partners include marketers, sales persons and other online related business partners that help in marketing products from the industry. These stakeholders aid in increasing sales in the industry hence enhance industrial business sustainability. Additionally, they notify the industry for various climatic changes so as it can make plans to cater for future emergencies. The industry therefore benefits significantly from these partners. Possible Strategic Responses and a Preferred Approach in the Australian Energy Industry The Australian energy industry has also set out a strategic plan that will see the industry supply electricity up to 2031 as concluded by Knights (2012).The Energy2031 strategic plan has been rolled out to ensure that the industry manages to supply energy in Australia and around the globe. This plan has taken into consideration major climatic changes that might affect production of electricity in the next twenty years. In this regard, the industry has responded to any challenges that might face the industry from the present up to 2031. The other strategic plan that the industry has placed into consideration in dealing with various challenges is putting a lot of emphasis in the use of renewable sources of electricity as concluded by Knights (2012). Global rapid population growth is another factor that is likely to affect the supply and production of energy. In this regard, the Australian energy industry basing on the study done by (Strategic Energy Initiative 2015) has invested in five plant power production and supply. The five plant power production and supply will help to reduce monotonous energy production from one source. In the recent past, the Australian energy industry has been depending on water for electricity production. Essentially, this has caused a lot of hiccups in energy production and supply. Consequently, the industry has now provided required education to citizen about using locally available materials to produce energy. This leads to a five plant power productions and supply which involve the use of coal, wind, oil and other renewable materials to produce energy as concluded by the Strategic Energy Initiative (2015). This approach has helped to solve various challenges that might affect economic suitability of the industry. Measures and Roles taken to implement the Preferred Approach in the Australian Energy industry Australian population growth in relation to global population increase has caused a significant increase in energy consumption. In this regard, the manufacturing companies have put in place various strategies that will aid normal operations of the company even during challenging times. Essentially, short, medium and long term climatic changes immensely affect the operations of the Australian energy company. As such, the fore mentioned strategies have to be considered during these times to help maintain the mega worldwide energy manufacturing industry operates continuously as concluded from the studies by Mishra et al. (2015). The present business environment is typified with a myriad of challenges. As a result, for the stipulated measures to be achieved a number of measures need to considered. The first measure to be considered according to (Mishra et al. 2015) is ensuring that an effective board of management team is in place. Secondly, Effective budgeting basing on the current and future plans of the industry will aid in the accomplishment of the planed strategies as concluded by Heckman et al. (2015). The Australian Energy Industry needs to plan effectively and budget for the present and future industrial conditions. Specifically, financial allocations have to be done basing on the most crucial aspect that the company cannot run without. Additionally, the budget has to take care of different climatic conditions which might affect the availability of raw materials such as water. In this regard, the company has to set aside some finance to help in conservation of water bodies. Precisely, short, medium and long term climatic changes have to be catered for during the actual budgeting since they can cause severe consequences to the industry. Effective budgeting will help in accomplishment of the set strategies. Efficient workforce equipped with modern technological skills will aid in ensuring quality production in the industry based on the studies by Ausness (2012). The strategic plan stipulated to help ensure continuous operations of the company during various challenges in the market. Equipped skilled labor will be to ensure quality production and energy will be supplied to almost everyone in the country. The fourth measure to be considered in ensuring accomplishment of the set strategies according to (Dean 2014) is ensuring that the regulations set by ARERC are adhered to. The regulation will help the company to operate properly without any environmental negative consequences. Lastly, effective marketing strategy has to be considered as a response to various business challenges. The company has put in place effective both online and manual marketing team that helps in marketing its energy related products evident from the studies by Mishra et al. (2015). Consequently, this team plays a significant role of marketing energy related products during various market challenges to aid in maintaining industrial sustainability. Conclusion Rapid Australian economic growth and significant remarkable infrastructure have been realized due to the existence of the Australian Energy Industry. As such, the Australian Energy industry has realized a significant increase in service demand both locally and across the globe. The energy industry is among pivotal industrial pillars that aid in economic growth in Australia both through local use and exports. Just like any business, the Australian energy industry is faced by various challenges. The challenges range from prompt climatic changes, which lead to poor service delivery to the customers leading to fluctuating market demands among other challenges. Essentially, the present global market operates within a complex business environment that requires proper planning to avoid various challenges. In this regard, the Australian energy industry has specified strategies that aid it in solving all climatic changes to help maintain a competitive business environment and maintain its top worldwide position in energy production. The strategic plan helps in ensuring business sustainability even during extreme climatic changes that might affect the availability of raw materials used in the actual manufacture. However, the strategies are faced by various frequent emerging challenges that hinder normal operations of the industry. 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