New Zealand Renewable Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The New Zealand Renewable Energy Market is segmented by Type (Geothermal, Hydro, Wind, and Other Types)
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
2016 - 2026
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The market for the renewable energy market in New Zealand is expected to register a CAGR of more than 3% during the forecast period, 2020-2025. Factors, such as encouraging government policies and efforts to meet power demand using renewable energy sources and to decrease dependency on fossils, are expected to be significant contributors to the growth of the market. The declining costs of renewable technologies are becoming competitive with fossil fuel sources, and additional subsidies on renewables are driving the renewable market further. However, stagnant growth in the renewable energy sector due to the absence of any new initiatives and limited land availability are expected to hinder the growth of the market studied.
Although wind energy growth in New Zealand has been stagnant till 2019, more than 1300 MW of consented wind projects and 500 MW of applied wind projects are expected to drive the wind market in the forecast period.
In 2019, the Government of New Zealand started working toward 100% of its electricity generation from renewable by 2035 . The efforts emphasis on different renewable sources, including solar, wind, geothermal, biomass, marine, and hydro. This, in turn, is expected to provide ample amount of opportunities for the players involved in the market.
New Zealand, with its ambitious upcoming renewable projects, is all set to achieve its renewable growth of 100% electricity generation from renewable sources by 2035. The country is also investing in the solar market to increase the deployment of solar panels at residential-scale, which is further driving the renewable market.
Scope of the report
The New Zealand renewable energy market report include:
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Key Market Trends
Wind Energy Growing as Major Source Of Energy
Till 2019, the wind energy experienced a stagnant growth, with approximately 690 MW of installation capacity by the end of 2019. Wind energy with a share of around 8% in terms of installed renewable capacity is expected to grow at a significant rate in the forecast period.
Wind farms like Project West Wind and Tarura wind farm are major operational projects coming up in 2020, with an annual average generation of 550 GWh and 650 GWh, respectively. Apart from these two, 17 other wind farms are currently in operation, contributing significantly to the New Zealand energy sector.
The wind energy market companies have been able to install taller wind turbines due to improvements in the wind turbine materials used, which allows the turbines to exploit higher altitude winds. Moreover, these new turbines have larger blades and, hence, can sweep more area than the smaller turbines. The growing size of the wind turbines has helped lower the cost of wind energy, indicating that it is economically competitive with fossil fuel alternatives.
Over 1,800 MW of wind generation capacity is consented in 2019, with a further 755 MW either applied for consent or on hold. This brings the sum of potential new wind generation capacity to 2,550 MW. The addition of this much capacity is expected to increase the wind share considerably during the forecast period.
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Upcoming Projects and Supportive Government’s Policies to Drive the Market
New Zealand launched Energy Efficiency and Conservation Strategy (NZEECS) for the period 2017-2022, which focuses on the promotion of energy efficiency, energy conservation, and renewable energy.
The government of New Zealand also implemented the National Policy Statement for Renewable Electricity Generation, which applies to renewable electricity generation activities at any scale. It covers the construction, operation, and maintenance of structures associated with renewable electricity generation.
The most ambitious project of New Zealand in the forecast period is the Castle Hill Wind Farm, which will involve the construction of up to 286 wind turbines with a potential capacity of up to 860 MW, which would provide enough electricity to supply over 370,000 households.
In September 2019, Vector Group and Watercare announced to deploy the first offshore solar farm of New Zealand with a capacity to power 200 houses. With such projects, New Zealand will be opening new opportunities in the renewable sector.
The upcoming projects and visionary policies of the New Zealand government are expected to drive New Zealand towards a global leader in renewable.
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The New Zealand renewable energy market is partially consolidated. The major companies include Contact Energy Limited, Vestas Wind Systems A/S, Genesis Energy L.P., General Electronics Company, and Meridian Energy Limited.