New Zealand, an island country located in the South Pacific Ocean, has an economy propelled by agriculture, manufacturing, tourism and geothermal energy resources. The government sees renewable energy as the future, and in accordance, it has taken major steps to expand renewable energy in New Zealand.
5 Facts About Renewable Energy in New Zealand
- New Zealand has a history of being innovators in energy. The first hydroelectric power plant in the Southern Hemisphere was built in New Zealand in 1885. Since then, the country has been a leader in renewable energy and was the second country to ever use geothermal energy for hydrogen production.
- Roughly 84% of the electricity in New Zealand is produced from renewable sources. This large amount of renewable energy production ranks the country second in the world for energy security. Hydro, geothermal, wind and bioenergy are among the largest producers of electricity. New Zealand’s volcanic and tectonic features give the country the ability to utilize geothermal energy. For this reason, geothermal energy represents more than half of the renewable energy in New Zealand. An estimated one in five people living in New Zealand has to sacrifice powering their homes in order to pay for other essentials because of the expensive energy bill that comes from non-renewable energy sources. When the power grid in a country comes increasingly from renewable energy, those living in poverty are placed in a more favorable situation because the high cost of fossil fuels no longer burdens people.
- Renewable energy will play a part in the country’s COVID-19 economic recovery plan. The Labour Party-led government in New Zealand sees the pandemic as an opportunity to invest in more renewables in order to create more jobs. The Labour Party plans to develop more high-skill jobs that it believes will immediately boost the economy and also help the country prepare for the future. It is estimated that renewable energy could create almost NZ$165 trillion in global GDP gains by 2050. Such a large economic comeback would significantly benefit those living in poverty, especially since the COVID-19 pandemic hurts the impoverished the most.
- The government is spending NZ$30 million on investigating pumped hydro storage. This investment expects to bolster New Zealand’s broader renewable energy goals as well as create thousands of skilled and semi-skilled jobs. The result of the investigation will potentially create a more affordable solution to the problem of hydropower storage during dry years when hydro lakes are low. This large investment signals the country’s dedication to renewable energy with plans to mitigate much of the risk of supply and demand.
- New Zealand’s goal is to have 100% renewable energy by 2030. Additionally, the country hopes to have net-zero carbon emissions by 2050. The proponents of the plan believe this will cause a massive increase in job growth and reduce electricity bills, which will benefit New Zealanders living in poverty.
Overall, New Zealand is making significant strides in its renewable energy sector in order to address the issue of energy poverty that impacts the most vulnerable people in the country.
– Stephen Illes