New Zealand has made significant progress in generating clean electricity, with more than 87% of its electricity coming from low-carbon sources in 2023. This achievement is primarily driven by hydropower, which accounts for about 58% of the country's clean electricity. Geothermal energy contributes almost 17%, and wind energy makes up almost 8% of the total electricity generation. On the other hand, fossil fuels still play a role, supplying around 13% of electricity, with natural gas and coal being the main contributors. Increasing the capacity and integration of low-carbon sources is essential to further reducing reliance on fossil fuels, particularly to support the electrification of other sectors such as transport, heating, and industry, which require additional electricity.
To increase low-carbon electricity generation, New Zealand can further invest in expanding its nuclear, wind, and solar energy infrastructure. While the country already benefits from substantial hydropower resources, diversifying its energy mix by incorporating more nuclear power plants would provide a reliable and scalable clean energy source, complementing existing intermittent energies like wind and solar. Additionally, streamlining regulatory frameworks to facilitate the faster deployment of wind and solar farms would significantly boost green energy generation. Moreover, implementing advanced energy storage solutions would enhance grid stability and ensure that surplus energy from wind and solar can be effectively utilized, helping to meet the growing electricity demand from various sectors.
Historically, New Zealand has seen various fluctuations in hydropower generation. In the late 1970s, hydropower output varied significantly, with notable increases of 1.6 and 2.5 TWh in 1978 and 1979, followed by an increase of 2.2 TWh in 1983 and 2.1 TWh in 1986. The 1990s saw alternating periods of growth and decline; for instance, 1993 and 1994 both experienced increases of over 2 TWh, while 1997 and 1999 faced declines of almost 3 and 2.4 TWh, respectively. The early 2000s displayed similar trends, with a substantial increase of 3.6 TWh in 2004, succeeded by a sharp drop of nearly 4 TWh in 2005. More recently, there have been fluctuations, such as the rise of 1.9 TWh in 2022, underlining the need for steady expansion in other forms of low-carbon energy to ensure a more resilient and reliable electricity supply.