New Zealand has made significant strides in embracing clean electricity sources, with over 85% of its electric power coming from low-carbon sources as of 2024. Hydropower is the backbone of this green energy strategy, supplying more than half of the country's electricity, followed by geothermal energy, which contributes nearly a fifth. Wind power adds close to a tenth of the total electricity, demonstrating a robust mix of clean technologies. Conversely, fossil fuels account for nearly 15% of electricity generation, with gas taking almost two-thirds of that share and coal supplying the remainder. As New Zealand aims to further reduce its dependence on fossil fuels, the electrification of other sectors like transportation, heating, and industry presents a substantial opportunity to broaden the scope of clean energy utilization.
Is Electricity Growing in New Zealand?
Despite an impressive clean energy portfolio, New Zealand has seen a decline in electricity consumption per person. In 2024, the electricity consumption stood at 8595 kWh per person, a decrease from the peak in 2004, which was 10450 kWh per person. Similarly, the output from low-carbon sources per person has dropped, with 7311 kWh per person falling short of the 8229 kWh per person recorded in 1995. These declines reflect a worrying trend in the country's energy trajectory, suggesting that efforts to grow electricity consumption and production, especially from clean sources, need significant reinforcement to fuel future demand generated by electrification and technology sector expansion.
Suggestions
To bolster low-carbon electricity generation, New Zealand should consider expanding its portfolio to include both solar and nuclear power. Solar energy offers immense potential due to technological advancements that have made it more efficient and cost-effective. Meanwhile, nuclear power provides a reliable and continuous supply of clean energy, making it an ideal complement to intermittent sources like wind and solar. Prioritizing these expansions could position New Zealand as a global leader in green energy and help achieve its ambitious climate goals by moving away from the environmental and health impacts associated with fossil fuels.
History
Examining the history of hydroelectric power in New Zealand reveals that it experienced noticeable fluctuations over the decades. In the mid-1970s to the early 1980s, hydropower saw significant growth with few declines, marking a period of expanding energy capacity. The 1990s, however, began with setbacks but ended on a high note with increased hydro output. Despite some setbacks in the early 2000s, the data indicates a general upward trajectory in hydropower until a noticeable drop occurred in 2005 and again in 2024. These trends highlight the need for a more stable and diversified low-carbon electricity strategy incorporating solar and nuclear energy, ensuring consistent and reliable clean energy production for the future.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.