Energy Policies of IEA Countries - New Zealand 2017 Review
Edition: 2017
243 pages
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 energy future.
See also:
New Zealand country page