Electricity in New Zealand in 2023/2024

New Zealand is making impressive strides in the realm of clean electricity production, sourcing more than 83% of its electricity from low-carbon sources. This is a remarkable achievement, highlighting the country's commitment to reducing carbon emissions and mitigating climate change. The bulk of New Zealand's electricity generation, over half, comes from hydropower, while geothermal energy contributes almost a fifth. Wind power also plays an important role, adding to the mix of green energy sources. Meanwhile, fossil fuels, including gas and coal, still account for less than 17% of the electricity supply, which New Zealand aims to reduce further. The country is now tasked with the challenge of electrifying other sectors, such as transport and industry, which will require expanding its clean electricity network between November 2023 and October 2024.

Suggestions

To continue enhancing its low-carbon electricity generation, New Zealand can invest more in wind and solar power infrastructure. Technological advancements in these energy sectors promise increased efficiency and cost-effectiveness, making them viable options for further expansion. Development of offshore wind farms can leverage the country's vast coastline to capture more wind energy. Additionally, fostering innovation in energy storage solutions can address intermittency issues associated with solar and wind power, ensuring constant supply. As a strong proponent of nuclear energy, introducing nuclear power as part of a diversified energy portfolio could provide a reliable and clean baseline electricity supply, assisting in the reduction of reliance on fossil fuels and accelerating the shift towards a more sustainable future.

History

Tracing the history of low-carbon electricity in New Zealand reveals a dominant focus on hydropower, especially from the mid-1970s onwards. Gains in hydroelectricity were notable in the early years: 1975 saw an increase by 2.7 TWh, while 1979 added another 2.5 TWh. Several increases marked the 1980s and 1990s, although intermittent declines like the 2.9 TWh drop in 1997 show the challenges of hydropower variability. Noteworthy hydroelectric expansions occurred in the early 2000s, peaking with a significant rise of 3.6 TWh in 2004. More recently, 2022 experienced a rebound with a 1.9 TWh gain. Unfortunately, the recent downturn of 2.8 TWh in 2024 underscores the need for diversifying the energy mix to ensure resilience. Introducing and expanding other low-carbon sources like wind, solar, and nuclear will be essential to complement hydropower and reduce reliance on volatile fossil fuels.

Electricity Imports and Exports

Balance of Trade

Data Sources