New Zealand is leading the charge in clean electricity generation, with more than 85% of its electricity coming from low-carbon sources, a notable achievement for the country. Hydropower contributes more than half of the total electricity, making it the cornerstone of the nation's clean power supply. Significant portions also come from geothermal sources, which provide about one-fifth of the electricity. Wind energy contributes nearly 10%, showcasing its potential as a growing resource. In terms of fossil energy, gas represents around 12%, while coal is responsible for close to 3%, indicating some reliance on traditional fossil fuels. This impressive commitment to clean energy provides New Zealand a strong foundation from which to tackle the next challenge: the electrification of other sectors such as transport, heating, and industry. Meeting this challenge will require a significant increase in electricity supply and continued investment in low-carbon alternatives.
Is Electricity Growing in New Zealand?
Despite New Zealand's impressive clean energy mix, the nation's electricity consumption per person has been declining. The latest data shows that in 2024, the electricity consumption was about 8513 kWh per person, a decrease from the record high of 10450 kWh per person in 2004. Furthermore, in terms of clean electricity generation, the latest figures show 7241 kWh per person, which is a decline from its previous peak of 8229 kWh per person in 1995. This downward trend is concerning, especially as New Zealand prepares to electrify more aspects of its economy. The decline in both overall electricity consumption and low-carbon electricity generation underscores the urgent need for proactive measures to boost electricity output.
Suggestions
To increase low-carbon electricity generation, New Zealand should consider expanding its investment in nuclear and solar power, both of which are reliable and sustainable sources. Building nuclear power plants could provide a constant, clean energy supply to support growing demands. Similarly, investing in solar power infrastructure would leverage New Zealand's natural resources and complement its existing energy mix. These steps would not only help meet future electricity demands but also further reduce reliance on fossil fuels, contributing to global efforts against climate change. Additionally, fostering innovation in energy storage solutions will enhance the efficacy of solar power and solidify low-carbon electricity's role in New Zealand's future energy strategy.
History
Examining the historical trends, New Zealand's journey in low-carbon electricity, mainly through hydropower, has seen fluctuations. In the mid-1970s to late 1980s, there were periods of growth with increases like the 2.7 TWh in 1975 or 2.1 TWh in 1986. However, the early 1990s had both growth and setbacks, such as the 2.4 TWh increase in 1993 followed by a 2.9 TWh decline in 1997. The early 2000s experienced notable fluctuations with significant increases, including 3.6 TWh in 2004, which was followed by considerable declines in subsequent years. In more recent years, fluctuations continue, with a mix of growth and decline, illustrating the need for more stable and diversified growth in low-carbon electricity sources. This historical perspective highlights the importance of diversifying energy sources and underscores the potential benefits of integrating more nuclear and solar energy to ensure future stability and growth.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.