Praneeta Mahajan
Hamilton, July 12, 2024
New Zealand is poised to ramp up its generation of wind and solar energy significantly to meet future electricity demand, according to the latest Electricity Demand and Generation Scenarios (EDGS) report released recently by the Ministry of Business, Innovation and Employment (MBIE).
Surge in Electricity Demand
The report highlights a projected surge in electricity demand driven by the transition from fossil fuels to electricity, a rise in electric vehicle adoption, and new electricity needs such as large-scale data centres.
MBIE Marketing Manager Mike Hayward said that about 50% of all energy demand will be met by electricity by 2050.
“Modelling indicates that wind and solar are the most viable options for generating electricity to meet future demand. These technologies are becoming increasingly cost-effective and innovations are likely to enhance their efficiency further,” he said.
The EDGS report is an independent set of scenarios that explores potential future electricity demand and the generation capacity required to meet that demand through 2050. These scenarios inform the Commerce Commission’s assessments of Transpower’s planning proposals for future capital investments in the electricity transmission grid.
Renewable Energy Growth
Under favourable economic conditions, the report predicts an 80.9% increase in electricity demand by 2050. This would see the current national demand of 39.6 TWh rising to 71.7 TWh by mid-century.
Mr Hayward said, “The 2030s will be a decade of significant transformation in electricity demand and generation. We expect increased demand for electricity alongside the retirement of existing coal and natural gas generation capacity.”
According to the report, while the transition to renewable energy is expected to meet the bulk of the additional demand over the next 26 years, natural gas will still play a supporting role in the electricity generation market.
By 2035, it is projected that 92.1% of New Zealand’s electricity will be generated from renewable sources. This breakdown includes 45.7% from hydro, 20.3% from wind, 19.2% from geothermal, 5.6% from solar, and 1.4% from other renewable sources. By 2050, the proportion of electricity generated from renewable sources is expected to increase to 96.3%.
Renewable energy plays a crucial role in reducing greenhouse gas emissions, enhancing energy security, and creating sustainable development.
Wind and solar energy, in particular, are essential components of this shift as they are abundant, cost-effective, and produce no direct emissions. As countries worldwide strive to meet climate goals and reduce their reliance on fossil fuels, the advancements in renewable energy technologies offer a promising path towards a cleaner and more resilient energy future.
The EDGS report underscores the critical role of wind and solar energy in meeting New Zealand’s future electricity needs, signalling a transformative shift towards more sustainable energy solutions.
Praneeta Mahajan is an Indian Newslink reporter based in Hamilton.
