New Zealand
Member country
Energy system of New Zealand
New Zealand has a diversified energy mix, with significant production of both hydropower and geothermal. As the country embarks on an ambitious energy transition, it has many natural advantages, including a strong renewable resource base. New Zealand already has a low-emissions electricity system, with over 80% of electricity coming from renewable sources. The key challenge will be to decarbonise other end-use sectors through clean power and support investments in new technologies to achieve deeper emissions cuts across all sectors. Notably, the transport sector accounts for the highest share of emissions and is almost entirely dependent on oil while industry is also heavily reliant on fossil fuels.
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Key recommendations
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Accelerate the development of the long-term Energy Strategy and related sectoral strategies to clarify the macro level policy settings and encourage necessary investments as soon as possible.
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Assess the relative cost of abatement across energy end-use sectors when developing the long-term Energy Strategy, prioritising overall abatement over the full decarbonisation of any particular sector.
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Move quickly to clarify regulatory regimes for renewables generation, such as the Resource Management Act and an offshore wind framework, to jump-start investments in additional renewables capacity.
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Increase policy focus on the transport sector, especially measures that will deliver structural change to diesel demand.