New Zealand is making remarkable strides in obtaining its electricity from low-carbon sources, with an impressive 92% of its electricity coming from these sustainable options over the past year, spanning from May 2025 to April 2026. Hydropower represents the largest share of this low-carbon electricity at 58%, followed by geothermal energy at around 22% and wind energy at just over 9%. In a significant achievement, fossil fuels comprise less than 8% of the electricity mix, with gas and coal making up 6% and 2% respectively. This dedication to clean energy sets a strong foundation for New Zealand as it looks toward the future, where electrifying sectors such as transport, heating, and industry will necessitate an even greater supply of electricity.

Is Electricity Growing in New Zealand?

Despite these substantial achievements in clean energy, electricity consumption in New Zealand is on a downward trend compared to historic levels. The latest data for 2026 shows an electricity consumption rate of 8,103 kWh per person, a decline from the 2004 record of 10,450 kWh per person. This represents a decrease of 2,347 kWh. Similarly, low-carbon electricity generation per person has seen a reduction from 8,229 kWh in 1995 to 7,452 kWh now, marking a decrease of 777 kWh. This decline is concerning, especially when considering the increasing demand for electrification across different sectors.

Suggestions

To ramp up low-carbon electricity generation, New Zealand should look towards expanding both solar and nuclear energy. These sources offer immense potential to bolster New Zealand’s clean energy portfolio while reducing reliance on fossil fuels. Solar energy, with its declining costs and technological advancements, combined with nuclear energy's consistent and reliable output, can help address the anticipated rise in electricity demand. By investing in these energy sources, New Zealand can build a more robust and sustainable energy mix to power its future needs.

History

Historically, New Zealand has experienced fluctuations in its low-carbon electricity generation, particularly from its key hydropower resource. In the 1970s, New Zealand saw notable growth in hydroelectric power, with increments such as 2.7 TWh in 1975 and 2.5 TWh in 1979. The early 1980s continued this positive trend with increases of over 2 TWh in 1983 and 1986. The 1990s saw some variability; however, a significant boost in 1993 of 2.4 TWh was witnessed. The new millennium offered mixed outcomes, with a series of falls like those in 1997 and 1999, contrasted by increases such as in 2002 and a substantial rise in 2004. More recent years, like 2022 with a 2 TWh increase, demonstrate the ongoing volatility yet potential within the hydropower sector. Instead of solely relying on hydropower, this historical insight underscores the need for New Zealand to diversify its low-carbon energy sources to ensure stability and growth in its clean energy generation.

Electricity Imports and Exports

Balance of Trade

* 12M = Last 12 months (May 2025 – Apr 2026) — a rolling 12-month period, not a calendar year.