Electricity sector in New Zealand
| Installed capacity (2014) | 9,637 MW |
|---|---|
| Share of fossil energy | 20% |
| Share of renewable energy | 80% |
| GHG emissions from electricity generation (2011) | 4,843 kilotonnes CO2-e |
| Average electricity use (2014) | 9,802 kWh per capita |
| Distribution losses (2014) | 6.6 percent |
| Residential consumption (% of total) |
32 percent |
| Industrial consumption (% of total) |
44 percent |
| Commercial and public consumption (% of total) |
24 percent |
| Average residential tariff (US$/kW·h, 2015) |
0.29 (NZ$ 0.268) |
| Share of private sector in generation | 36% |
| Share of private sector in transmission | 0% |
| Share of private sector in distribution | 100% |
| Competitive supply to large users | Yes, except in isolated areas |
| Competitive supply to residential users | Yes, except in isolated areas |
| Responsibility for transmission | Transpower |
| Responsibility for regulation |
Electricity Authority Commerce Commission |
| Electricity sector law |
Electricity Act 1992 Electricity Industry Act 2010 |
The electricity sector in New Zealand uses mainly renewable energy sources such as hydropower, geothermal power and increasingly wind energy. 75% of energy for electricity generation is from renewable sources, making New Zealand one of the lowest carbon dioxide emitting countries in terms of electricity generation. Electricity demand has grown by an average of 2.1% per year from 1974 to 2010 but decreased by 1.2% from 2010 to 2013.
Regulation of the electricity market is the responsibility of the Electricity Authority (formerly the Electricity Commission). Electricity lines businesses, including Transpower and the distribution lines companies, are regulated by the Commerce Commission. Control is also exerted by the Minister of Energy in the New Zealand Cabinet, though the Minister for State-Owned Enterprises and the Minister for Climate Change also have some powers by virtue of their positions and policy influence in the government.
Initial use of electricity in New Zealand was associated with mining. The first industrial hydro-electric power plant was established at Bullendale in Otago in 1885, to provide power for a 20 stamp battery at the Phoenix mine. The plant used water from the nearby Skippers Creek, a tributary of the Shotover River.
Reefton on the West Coast became the first electrified city in 1888 after the Reefton Power Station was commissioned, while the first sizable power station was built for the Waihi gold mines at Horahora on the Waikato River. This set a precedent that was to dominate New Zealand's electricity generation, with hydropower becoming and remaining the dominant source. In 1930, the percentage was at 92%.
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