New Zealand’s electricity system stands out as impressively clean, with more than 84% of its electricity derived from low-carbon sources. This environmental achievement is primarily driven by hydropower, accounting for over half of the electricity mix, followed by geothermal sources, which contribute almost a quarter, and wind, providing a significant share. However, the current energy landscape also shows reliance on fossil fuels, with gas contributing over 12% and coal almost 3% of electricity generation. As New Zealand charts its path towards further decarbonization, the next frontier involves electrifying sectors like transport, heating, and industry, which will inevitably require a significant increase in clean electricity generation.
Data sources used on this page include IEA and World Bank. More about data sources →
Is Electricity Growing in New Zealand?
Despite the encouraging clean energy foundation, electricity consumption in New Zealand is experiencing a notable decline. As of 2025, electricity consumption stands at 8,170 kWh per person, markedly down from a historic peak in 2004 of 10,450 kWh per person. Moreover, the low-carbon electricity generation has also decreased since a record high in 1995, falling to 6,930 kWh per person from 8,229 kWh per person. This decrease in both overall and low-carbon electricity usage raises concerns, as an increase is essential to support the anticipated demand from electrifying various sectors and to counter the negative impacts of fossil fuels, such as climate change and air pollution.
Suggestions
To boost low-carbon electricity generation, New Zealand should consider significantly expanding its solar and nuclear power infrastructure. By harnessing the abundant sunlight New Zealand enjoys, solar energy can become a pivotal player in the energy mix. Additionally, transitioning to nuclear power presents a reliable and environmentally friendly solution to meet rising electricity demands. Establishing new nuclear facilities not only complements the existing low-carbon energy resources but also provides a robust response to fossil fuel reliance. Enhancing these clean energy technologies will empower New Zealand to significantly reduce its carbon footprint while securely and sustainably meeting future electricity needs.
History
Looking back through the historical data reveals that New Zealand's journey with hydroelectricity has been a rollercoaster of ups and downs. The late 1970s and early 1980s saw notable gains in hydroelectric generation, including a 2.7 TWh increase in 1975 and a similar rise in 1983. The 1990s also included important increases, like the 2.4 TWh rise in 1993, followed by a 3.6 TWh peak in 2004. However, this period also had setbacks, with noteworthy declines in hydro generation, such as the 2.8 TWh drop in 2001 and a 3.9 TWh decrease in 2005. Entering the 21st century, the trend has been mixed, with occasional boosts overshadowed by declines, including a 2.7 TWh drop in 2024. While hydro remains a stalwart of New Zealand’s low-carbon strategy, diversifying with more solar and nuclear power is essential to secure a stable and growing clean energy future.
