Energy Policies of IEA Countries: New Zealand 2017
Since the last IEA in-depth review in 2010, New Zealand has further developed its
energy policy, as reflected in its energy strategy to 2021 and new rules for more
competitive electricity markets.
With its unique resource base, New Zealand is a success story for the development
of renewable energy, notably hydro and geothermal, without government subsidies. Geographically
isolated, New Zealand has developed robust policies for security of supply. Outside
of its largely low-carbon power sector, managing the economy’s energy intensity and
greenhouse gas emissions while still remaining competitive and growing remains a challenge.
The IEA review highlights the areas that are critical to the success of the energy
policy agenda in New Zealand.
To support sustainable growth in line with the Paris Agreement, the government should
facilitate technology opportunities for renewable energy and energy efficiency, in
buildings, industrial heat, transport and agriculture.
The government has ambitious plans to boost the share of electric vehicles and renewable
energy. The country has a flexible power system, but future growth requires fine-tuning
of market rules in favour of even more flexibility, demand response, smart and effective
electricity retail and distribution.
While security of supply is well ensured by effective markets, an energy-constraint
system can benefit from market-based risk managements tools, including a safety net
for dry years as well as access to global LNG markets.
This review analyses the energy policy challenges facing New Zealand and provides
recommendations to help guide the country towards a more secure, sustainable and affordable
Published on February 23, 2017
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