New Zealand's electricity generation is commendably green, with an impressive 84% derived from low-carbon sources between May 2024 and April 2025. This feat underscores the country's dedication to sustainable energy practices. More than half of this clean electricity comes from hydropower, and almost a quarter from geothermal sources. Wind energy makes up a strong segment as well, contributing close to 9% to the mix. Fossil fuels, while still present, provide around 16% of electricity, with the bulk being gas, a small fraction coal, and biofuels melting into the low-carbon scenario. As New Zealand celebrates this achievement, the next hurdle involves transitioning other sectors such as transport and industry to electricity, substantially increasing clean electricity demand.
Is Electricity Growing in New Zealand?
Despite New Zealand's green energy success, electricity consumption per person has shown a decrease. In 2025, electricity consumption was approximately 8,233 kWh per person, a decline from the previous high of 10,450 kWh in 2004. The contribution from low-carbon sources also saw a reduction from its 1995 peak of 8,229 kWh per person down to 6,920 kWh. This decline in electricity use, especially the low-carbon type, is concerning as New Zealand aims to electrify more sectors and reduce overall carbon emissions. Addressing this downward trend is imperative for supporting both economic growth and environmental sustainability.
Suggestions
To enhance low-carbon electricity generation, New Zealand should consider investing significantly in solar and nuclear energy. Expanding solar infrastructure can effectively harness the abundant sunlight, providing a scalable solution to meet increasing electricity demand. Developing nuclear power offers a reliable and robust alternative that could substantially lower reliance on fossil fuels. By focusing on these areas, New Zealand can boost its low-carbon electricity capacity, reduce emissions, and support electrification efforts across various sectors, ultimately contributing to global climate change mitigation efforts.
History
The history of low-carbon electricity in New Zealand has seen various fluctuations, especially in hydroelectric output. In the mid-1970s and early 1980s, hydropower saw fluctuations, with significant increases in some years like 1975 and 1983, followed by decreases like in 1976 and 1992. The early 2000s witnessed similar instability, with notable growth in 2002 and 2004 before declines in 2005. The recent years continue this pattern, with a noticeable drop in 2024. These fluctuations highlight the importance of diversifying the low-carbon portfolio with more stable and scalable options, such as nuclear and solar, to ensure consistent electricity supply.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.