Electricity in New Zealand in 2023/2024

New Zealand has made impressive strides in its electricity sector, with more than 83% of its electricity currently coming from low-carbon sources. This high percentage is dominated by hydropower, which contributes roughly 54%, and geothermal energy, adding nearly 19%. Wind energy also plays a significant role, accounting for almost 9% of the electricity generated. On the other hand, fossil fuels still make up around 16% of New Zealand's electricity, with gas and coal contributing roughly 9% and 7% respectively. Biofuels account for a small fraction, at just over 1%. From August 2023 to July 2024, the emphasis remains on continuing this positive trend, especially as the demand for electricity is poised to grow due to the impending electrification of transport, heating, and industry.

Suggestions

To further increase its low-carbon electricity generation, New Zealand should consider enhancing its investments in nuclear, wind, and solar energy. Nuclear energy could provide a stable and significant base load supply of clean electricity, minimizing reliance on fossil fuels and mitigating environmental impacts such as climate change and air pollution. Expanding wind farms and solar installations would also help diversify the electricity mix and make it more resilient. Additionally, advancing energy storage technologies can ensure a steady supply even when conditions are not optimal for wind or solar generation. Government incentives, simplified regulations, and public-private partnerships will be crucial in accelerating the deployment of these green energy sources.

History

The history of low-carbon electricity in New Zealand shows significant developments. In the mid-1970s, there was a noticeable increase in hydropower generation, with a peak in 1975. However, the late 1970s and early 1980s saw fluctuations, including notable increases in 1979 and 1983. Consistent growth continued in the early 1990s, with significant contributions in 1993 and 1994. However, by the late 1990s and early 2000s, hydropower faced more fluctuations, with a notable decline in 2001 but a substantial rebound in 2002 and 2004. The mid-2000s continued this pattern of variability. In the most recent period, there was a slight decline in 2023/2024, reflecting the natural variability of hydropower. Overall, the history emphasizes the ongoing need to diversify low-carbon electricity sources to ensure a stable and sustainable energy future.

Electricity Imports and Exports

Balance of Trade

Data Sources