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Energy

• Energy supply
  • Total primary supply
  • Electricity generation
• Energy demand

Electricity generation

This indicator measures the amount of electricity generated from each fuel type in New Zealand. Non-renewable fuel types (coal and gas) are accounted for as they are used in New Zealand’s six thermal electricity generators. Renewable sources such as wind, hydro, geothermal, biogas, solar, wood and marine are also accounted as they generate electricity from various locations throughout the country.

All forms of electricity generation have impacts on the environment. The development of dams required for hydro-electricity alters natural flows of water and submerges land, while the installation of wind turbines alters visual landscapes. Greenhouse gas emissions result from fugitive emissions in the use of geothermal heat in electricity generation, as well as from fugitive and combustion emissions resulting from the use of fossil fuels in thermal electricity generators.

Because electricity accounts for 28 per cent of total consumer energy demand, and many of the environmental issues associated with electricity generation depend on the specific method of generation, understanding the composition of energy sources is important in developing a clear perspective of associated environmental impacts associated with meeting New Zealand’s electricity needs.

Current situation

In 2007, 153 petajoules of electricity was generated in New Zealand, equating to 36 gigajoules per person. New Zealand generates a high proportion of electricity from renewable sources. In 2007, renewable sources accounted for 67 per cent of New Zealand’s electricity generation, with hydro-electricity providing 55 per cent, geothermal 8 per cent, wind 2 per cent, and others (biogas and wood) 2 per cent.

Electricity generation in New Zealand by fuel type, 2007

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Long-term trend

New Zealand’s total electricity generation has seen a steady long-term upward trend, amounting to a 15 per cent increase between 1998 and 2007. The use of non-renewable energy sources has also grown, accounting for 37 per cent of electricity generation in 2007 – up from 26 per cent in 1998.

Hydro-electricity generation is traditionally the largest source of electricity in New Zealand. While hydro continues to dominate, the availability of cheap gas from the Maui field, and the limited opportunities for further hydro development, has meant that the growing demand for electricity has largely been met by non-renewable developments. This has resulted in hydro’s share of total electricty generation falling 11 per cent between 1998 and 2007. While there has been rapid growth in electricity generation from other renewable electricity sources – especially wind, which has increased by 2.5 petajoules (over 4000 per cent) between 1998 and 2007 – the share of total electricity generation from non-hydro renewables remains too small to meet the growing gap between electricity demand and hydro’s static generation. Instead, fossil fuels have been increasingly relied upon.

Between 1998 and 2007, the use of coal and gas to generate heat in thermal electricity generators increased by 47 per cent. This increase has contributed to a 68 per cent increase in greenhouse gas emissions from electricity generation over the same period.

Electricity generation in New Zealand by fuel type, 1974–2007

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Recent trend

Between 2005 and 2007, electricity generation increased by 1.7 per cent in New Zealand. As a result of population growth, electricity generation per person fell by half a per cent over the same period.

Coal-fired electricity generators accounted for 21 per cent of New Zealand’s non-renewable generation in 2007, down considerably from 36 per cent the previous year. This 46 per cent fall in coal generation is the result of the development of a new natural gas-fired thermal electricity generator, which came on line in 2007, fuelled by increased production from the Pohokura natural gas field.

Geothermal energy represents a significant and growing component of electricity supply in New Zealand, accounting for 7 per cent of the total in 2007. The geothermal power sector will continue to grow, with a number of new projects planned or under construction.

There has also been a considerable rise in electricity production from other forms of renewable sources. Electricity generation from wind increased by 53 per cent between 2005 and 2007, while production from other renewables, including biogas, solar and marine, increased by 11 per cent over the same period. While these sources only accounted for 4 per cent of New Zealand’s total electricity generation in 2007, continued investment in developing these technologies could lead to their increased role in electricity generation in the future.

International comparison

According to the latest data, while New Zealand has the seventh lowest level of total electricity generation among Organisation for Economic Co-operation and Development (OECD) countries, it has the eighth highest level of electricity generation per person. Furthermore, as highlighted earlier, not only is New Zealand’s electricity generation showing a long-term growth trend, between 1998 and 2007 it grew more quickly than the OECD average.

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Last updated: 24 July 2009