Electricity in New Zealand in 2023

As of 2023, New Zealand is already leading the world in terms of low-carbon electricity, generating just over 88% of its power from sources such as hydropower, geothermal and wind. Hydropower is the prevalent source among them, covering more than half of the country's electricity needs at 60%, followed by geothermal energy which contributes just under a fifth. The share of wind energy is slightly above 8%, while biofuels make up a small fraction at around 1.5%. Despite these strides, the presence of fossil fuels, in the forms of gas and coal are still evident, together accounting for more than 11% of electricity production.

Suggestions

For New Zealand to further increase its low-carbon electricity generation, it can explore the diversification of its energy mix by investing in other forms of green technologies such as solar and nuclear energy. With its abundant sunshine hours in certain regions, solar power could become a major asset. Similarly, although nuclear power is not currently in the mix, with the global advancements in nuclear safety and waste management, it could be considered as a viable option for the long-term, steady and large-scale power production.

History

The evolution of low-carbon energy in New Zealand has been dominated by the ongoing expansion and occasional dips in hydropower production since the mid-1970s. The late 1970s and early 1980s, saw a steady growth in hydropower, with peak progression occurring in 1979 and 1983. Unfortunately, this initial boom was followed by some years of decline in the early 1990s. However, by the late 1990s, the country managed to rebound, with hydropower production soaring until 2005, which saw the most significant drop of almost 4 TWh. The following years witnessed a spate of fluctuations, with the last available data from 2022 showing a positive increase of close to 2 TWh, putting it back on the path of growth.

Electricity Imports and Exports

Balance of Trade

Data Sources