Electricity market in good shape

  • Hekia Parata
Energy and Resources

Data published today in the New Zealand Energy Quarterly shows that in the first six months of this year almost 80 per cent of New Zealand's electricity generation came from renewables, says the Acting Minister of Energy and Resources, Hekia Parata.

“The electricity industry is buzzing with new construction projects across the country. We’ve seen four wind farms, two geothermal generators and a gas-fired power station commissioned in the last few years.

“These are encouraging signs, and will help power companies meet the electricity needs of New Zealanders for the rest of the decade,” says Ms Parata.

“Even more encouraging is the commitment to renewable electricity. Wind, geothermal, hydro and marine projects make up the bulk of proposed new generation projects.”

There are also signs that the retail electricity sector is becoming even more competitive, and customers are seeing the rewards.

“Increased competition, and pressure on retail tariffs, has been spurred on by the Government's ‘What’s My Number” campaign, which has seen a record 40,000 New Zealanders switch power companies each month since its launch at the end of May," says Ms Parata.

“Contact Energy offering a 22 per cent electronic prompt payment discount to online customers is a great example of how competition can result in better offerings to consumers.''

The Ministry of Economic Development's New Zealand Energy Quarterly, also shows emissions from electricity generation in 2010 were at the lowest point in a decade, and had declined 11 per cent from 2009.

“A combination of secure supply, increased retail competition, more renewables and lower emissions points to a bright future for New Zealand’s electricity sector,” says Ms Parata.

Data on the supply of major fuels, electricity generation and greenhouse gas emissions for the first six months of the year is available in the latest edition of the New Zealand Energy Quarterly which can be viewed at: www.med.govt.nz/energy/nzeq