New Zealand is making impressive strides in its pursuit of clean electricity, already securing more than 86% of its electricity from low-carbon sources. Over half of this green electricity comes from hydropower, demonstrating the country's strong commitment to sustainable practices. Geothermal energy also contributes more than a fifth, and wind further complements this clean mix. Fossil fuels, on the other hand, make up less than 14% of the electricity, with natural gas and coal barely appearing in the mix. The next key challenge is to electrify areas such as transport, heating, and industry. This electrification is essential for reducing greenhouse gas emissions and preventing air pollution, and it means New Zealand will need much more electricity in the future.
Is Electricity Growing in New Zealand?
Despite New Zealand's high proportion of clean electricity today, overall electricity consumption per person has declined from its peak. In 2025, the average New Zealander used 8025 kWh of electricity, marking a significant drop of 2425 kWh from the record high of 10450 kWh per person in 2004. This decline in consumption is matched by a decrease in low-carbon electricity generation, which, at 6916 kWh per person, is less than it was in 1995 when it stood at 8229 kWh per person. The reduced contribution of low-carbon energy is concerning and underscores the need for reinvigoration of the sector to meet increasing demands from sectors such as transport and heating.
Suggestions
To increase low-carbon electricity generation, New Zealand should invest in expanding its solar and nuclear capabilities. Solar energy, with its rapidly decreasing costs and massive potential, can provide a significant boost to New Zealand's electricity generation portfolio. Additionally, nuclear energy offers a dependable and substantial source of clean electricity that can operate independently of weather conditions. Investments in these areas will not only improve the reliability of New Zealand's electricity supply but will also ensure that the nation is ready to meet future electricity demands driven by electrification and innovation.
History
The history of low-carbon electricity development in New Zealand is primarily highlighted by significant fluctuations in hydropower generation over the years. In the late 1970s and 1980s, there were periods of notable growth, such as in 1975 and 1983. However, the 1990s saw more alternating trends, with both sizable increases, like in 1993 and 1998, and declines, as seen in 1997 and 1999. Notably, the early 2000s witnessed a standout year in 2004 with a substantial increase of 3.6 TWh, followed by a concerning drop in 2005. Most recently, the past decade has seen continued variability, with a significant decline in 2024. Recognizing these patterns underscores the importance of diversifying further into solar and nuclear, as reliance solely on hydropower can lead to volatility due to its susceptibility to meteorological factors.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.