Electricity in New Zealand in 2023

New Zealand’s efforts toward low-carbon energy are impressive with almost 90% of its electricity sourced from clean power methods. More than half of this comes from hydropower, while geothermal and wind energy make up just over a quarter of the total. Fossil fuels represent a small share, with gas making up about 7% and coal about 4%. While these figures are laudable, the country is working diligently to further reduce reliance on fossil fuels, with biofuels currently contributing to a fraction of the total electricity generation. Moreover, New Zealand holds an esteemed position as a major net exporter of electricity, indicating a surplus in their power production, aiding neighboring countries in their journey to lower carbon emissions.

Suggestions

As New Zealand forges ahead in its greening efforts, it can consider the utilization of more low-carbon energy methods to enhance electrical production. Hydropower and geothermal energy are worthy resources, but the potential of wind energy, currently contributing to roughly 8% of total energy, holds vast untapped potential. Given New Zealand's geographical positioning, which provides an abundant wind supply, escalating wind power generation could contribute meaningful impact. Moreover, the integration of nuclear energy as part of its clean energy portfolio could be explored, broadening the diversity of clean energy sources and catering to potential future increases in demand from sectors like transport, heating and industry.

History

In retrospect, New Zealand's push toward low-carbon energy started making significant strides during the 1970s, with hydropower leading the charge. However, the journey was marked with undulations; for instance, after witnessing a peak in hydropower generation in 1975, a decline was observed the following year. Nonetheless, the overall tread was inclined towards progression, with the largest surge observed in 2004. There were also significant downturns in the capacity in 1997 and 2005, but these were promptly counteracted in the following years. As we push farther into the 21st century, the nation's impetus to diversify its low-carbon energy resources further while consolidating its dominion in hydropower, therefore, becomes critical.

Electricity Imports and Exports

Balance of Trade

Data Sources