New Zealand stands as a global leader in sustainable electricity generation, sourcing more than 92% of its electricity from low-carbon sources over the past year, spanning from June 2025 to May 2026. Remarkably, hydropower is the dominant energy source, contributing about 59%, while geothermal and wind energy provide roughly 22% and 9% of the supply, respectively. In stark contrast, fossil fuel-based sources, such as gas and coal, account for only about 7% of the total electricity mix, with gas at approximately 6% and coal at just 2%, highlighting the nation's commitment to clean energy. However, the journey doesn't stop here; New Zealand's next ambition is to electrify sectors like transport, heating, and industry, which have traditionally relied on fossil fuels, necessitating a significant increase in electricity consumption.

Is Electricity Growing in New Zealand?

Despite these achievements, New Zealand is experiencing a worrying decrease in electricity consumption. The latest data for 2026 shows a consumption of 8202 kWh per person, a notable drop from the previous peak of 10450 kWh per person in 2004. This represents a decline of approximately 2250 kWh per person. Similarly, low-carbon electricity generation per person has decreased to 7609 kWh from its peak of 8229 kWh in 1995, reflecting a reduction of 620 kWh. This reduction in both total and low-carbon electricity is concerning, especially as the country prepares to expand its electricity use to accommodate future needs driven by electrification of various sectors.

Suggestions

To address these challenges, New Zealand must significantly expand its low-carbon electricity generation. One strategic approach is to invest even more extensively in solar energy, which offers the versatility of decentralized installations and can complement existing wind and hydropower systems. Moreover, advancing nuclear energy development could provide a consistent and reliable supply, contributing to the stability of the electricity grid. By pursuing these avenues, New Zealand can boost its electricity capacity, further reduce reliance on fossil fuels, and lay the foundation for more extensive electrification across multiple sectors.

History

Historically, New Zealand has seen fluctuating trends in hydroelectric power, particularly noticeable from the late 1970s to the early 2000s. In the early years, significant increases were noted in 1975, 1979, 1983, and 1986, reflecting the growth phase of New Zealand's hydropower capacity. However, these upticks were frequently followed by declines, such as those in 1976 and 1992, indicating a periodic instability. Notably, from the mid-1990s to the early 21st century, hydroelectric power experienced both significant surges—such as in 2002 and 2004—and downturns, such as those in 1997, 1999, and 2001. The latest data shows a decline in 2024 after a slight boost in 2022, suggesting a continued pattern of variance. To ensure future stability and growth, it's crucial for New Zealand to diversify its energy portfolio and bolster other low-carbon sources like solar and nuclear, ensuring a robust and dependable electricity supply.

Electricity Imports and Exports

Balance of Trade

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