Electricity in New Zealand in 2024
New Zealand is at the forefront of clean electricity generation, with more than 85% of its electricity derived from low-carbon sources. Over half of this green electricity comes from hydropower, highlighting the nation's strong commitment to sustainable resource utilization. Geothermal energy also plays a significant role, contributing almost a fifth of the low-carbon segment, while wind power adds about a tenth. Petrol-based electricity forms a minority, with coal and gas together making up less than 15% of the country’s electricity. Transitioning further away from these fossil fuels will not only reduce carbon emissions but also improve air quality. The next strategic goal for New Zealand lies in expanding its electricity production to other sectors such as transport, heating, and industry, thereby reducing reliance on coal and gas.
Suggestions
To increase low-carbon electricity generation, New Zealand may focus on expanding its wind and solar capabilities and potentially incorporate nuclear energy into its grid. While wind energy is already a vital part of New Zealand's electricity mix, there remains substantial potential for growth. Expanding solar power, even though currently less prominent, could complement hydro and wind resources, especially during dry or less windy periods. Furthermore, the introduction of nuclear power would provide New Zealand with a stable, reliable, and massive source of green electricity, allowing the nation to meet future demands while further reducing its carbon footprint. This diversified approach ensures energy security and addresses the growing need for sustainable energy solutions as the nation electrifies more sectors.
History
Historically, hydropower has been a significant component of New Zealand's electricity landscape, experiencing various fluctuations over the decades. In the mid-1970s and 1980s, hydropower generation painted a dynamic picture with both increases and decreases, reflecting the natural variability in water availability and demand. During the early 2000s, there were notable advances, especially in 2002 and 2004, when hydropower rose substantially. The evolution continued into the new millennium with sporadic declines, most notably in 2005, before a positive upswing emerged in 2009. However, recent years have seen some downturns, like in 2024, with hydropower output decreasing again. Despite these variations, hydropower steadfastly remains the backbone of New Zealand’s green electricity supply, accompanying other low-carbon sources on the path to a sustainable and reliable energy future.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.