In 2025, the average cost of electricity for residential use was around ***** New Zealand cents per kilowatt-hour. This was a slight increase in the cost of electricity reported in the previous year. New Zealand’s electricity consumption While the leading sector to consume electricity in New Zealand is the residential sector, the industrial electricity consumption follows closely. A slight decrease in consumption has been observed in both sectors. Although the main primary energy supply of New Zealand is sourced from oil, the electricity generation of the country has already become much greener. New Zealand uses an increasing share of renewable energy in its electricity sector, with over ***percent of the electricity production generated by renewable energy. Leading energy source: Hydropower In the distribution of energy sources used for electricity production, hydroelectric power plants generated more than half of the country's electricity. The production of electricity from hydropower has been rising significantly, only experiencing a slight decrease in 2024, while the country saw a decline in the use of fossil fuels. The increased use of hydropower can also be linked to climate change. In 2022, New Zealand experienced the warmest and wettest year on record, resulting in high hydrolake inflows.

In 2025, the average cost of electricity for commercial use was around ***** New Zealand cents per kilowatt hour. This represented an increase in the electricity cost in that sector compared with the previous year.

New Zealand NZ: Industry Electricity Price: USD per kWh data was reported at 0.090 USD/kWh in 2023. This stayed constant from the previous number of 0.090 USD/kWh for 2022. New Zealand NZ: Industry Electricity Price: USD per kWh data is updated yearly, averaging 0.070 USD/kWh from Dec 1990 (Median) to 2023, with 34 observations. The data reached an all-time high of 0.100 USD/kWh in 2021 and a record low of 0.060 USD/kWh in 2001. New Zealand NZ: Industry Electricity Price: USD per kWh data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s New Zealand – Table NZ.OECD.GGI: Environmental: Environmental Policy, Taxes and Transfers: OECD Member: Annual.

In 2025, the average cost of electricity for industrial use was around ***** New Zealand cents per kilowatt hour. This was an increase in the electricity cost compared to the previous year.

The Electricity Retailing industry in New Zealand has experienced a challenging five-year period, marked by volatile wholesale markets, relatively flat demand growth and tightening margins. Between 2020-21 and 2022-23, surging wholesale electricity prices created significant cost pressures for retailers, particularly those without generation assets. While retail electricity prices have risen in recent years, they’ve failed to keep pace with earlier wholesale price spikes, leading to a drop in profit margins across the industry. Industry revenue is expected to climb at a modest annualised rate of 2.2% over the five years through 2025-26 to reach $9.8 billion. This includes an anticipated 2.2% rise in 2025-26, driven by stronger demand from households and businesses and modest increases in retail tariffs. Higher billed volumes, supported by recent capacity additions and steady consumption growth, have more than offset the drag from easing wholesale prices. Vertically integrated gentailers like Meridian Energy and Mercury have performed better than standalone retailers. These gentailers have leveraged their renewable generation portfolios to buffer their retail businesses from market volatility, generating strong wholesale returns during periods of tight supply. Both companies have also been early movers in bundling electric vehicle (EV) charging solutions with retail offers, capturing emerging high-margin load segments and strengthening customer loyalty. In contrast, non-gentailers have faced a greater margin squeeze and intensified price-based competition. Regulatory settings have influenced industry dynamics. While distribution and transmission charges remain regulated by the Commerce Commission, the current weighted average cost of capital review has slowed increases in network costs, providing some relief to retailers. However, tighter regulation and the repeal of the low fixed charge tariff regime have shifted pricing dynamics, with retailers adjusting strategies to remain competitive. Looking ahead, industry revenue is forecast to jump at an annualised 2.8% over the five years through 2030-31 to reach $11.2 billion. The stronger outlook reflects rising household and business electricity use as electric vehicles become more common and the population grows, along with modest retail tariff increases to fund network upgrades. Smart meters and enhanced digital platforms will continue to engage customers more deeply in their energy consumption, lifting overall sales. However, with wholesale costs easing and competition intensifying, retailers will need to offer tailored plans, demand response programs and seamless digital experiences to lock in loyalty and boost profitability.

Graph and download economic data for Consumer Price Index: OECD Groups: All Items Non-Food Non-Energy: Total for New Zealand (CPGRLE01NZA657N) from 1970 to 2022 about New Zealand, core, all items, CPI, inflation, price index, indexes, and price.

New Zealand Consumer Price Index (CPI): Weights: HU: Household Energy: Electricity data was reported at 3.620 % in Jun 2018. This stayed constant from the previous number of 3.620 % for Mar 2018. New Zealand Consumer Price Index (CPI): Weights: HU: Household Energy: Electricity data is updated quarterly, averaging 3.910 % from Jun 2006 (Median) to Jun 2018, with 49 observations. The data reached an all-time high of 4.030 % in Jun 2017 and a record low of 3.290 % in Mar 2008. New Zealand Consumer Price Index (CPI): Weights: HU: Household Energy: Electricity data remains active status in CEIC and is reported by Statistics New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.I004: Consumer Price Index: Weights.

In March 2025, the average electricity supply meter import price amounted to $103 per unit, reducing by -34.6% against the previous month.

In 2024, the average price of residential natural gas was around ***** New Zealand cents per kilowatt hour. This marked a price increase of *** New Zealand dollar per kilowatt hour compared to the previous year.

Graph and download economic data for Consumer Price Index: OECD Groups: Energy (Fuel, Electricity, and Gasoline): Total for New Zealand (CPGREN01NZQ657N) from Q1 1960 to Q3 2023 about New Zealand, fuels, electricity, energy, gas, CPI, price index, indexes, and price.

New Zealand Producer Price Index: Weights: Input: Electricity, Gas and Water: Electricity and Gas Supply data was reported at 3.200 % in 2024. This records an increase from the previous number of 2.800 % for 2023. New Zealand Producer Price Index: Weights: Input: Electricity, Gas and Water: Electricity and Gas Supply data is updated yearly, averaging 3.750 % from Mar 2015 (Median) to 2024, with 10 observations. The data reached an all-time high of 4.700 % in 2015 and a record low of 2.800 % in 2023. New Zealand Producer Price Index: Weights: Input: Electricity, Gas and Water: Electricity and Gas Supply data remains active status in CEIC and is reported by Statistics New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.I015: Producer Price Index: Weights.

Consumption of electricity in New Zealand was dominated by the industrial sector, holding a ** percent share of total consumption. Within the industrial sector, basic metal mining had the highest electricity demand.

New Zealand’s electricity supply

Over ** percent of the electricity generated in New Zealand came from renewable sources. The country has one of the highest renewable energy production shares in the OECD. Included in the country’s leading green electricity sources were hydro, geothermal, and wind energy. From these, the electricity generated from hydropower amounted to the largest volume. While not the dominant source of electricity, coal was a commonly used fossil fuel for electricity supply.

The price of power

The average cost of electricity for industrial consumers increased around ** percent over the last decade. Industrial consumers paid the lowest rate per kilowatt hour, with commercial customers paying just slightly more. Furthermore, residential consumers had to pay about double that of what industrial consumers paid. With increasing costs of electricity in the residential sector, there has been a high volume of households switching their electricity provider in order to obtain lower rates.

The New Zealand solar energy market, currently experiencing robust growth, is projected to expand significantly over the next decade. With a Compound Annual Growth Rate (CAGR) exceeding 3%, the market's value, estimated at approximately $150 million in 2025 (this is an estimation based on typical market sizes for similar-sized countries with comparable solar adoption rates), is poised for substantial expansion. This growth is driven by several key factors: increasing electricity prices, government incentives promoting renewable energy adoption (including subsidies and feed-in tariffs), a growing awareness of climate change and the desire for energy independence among consumers, and advancements in solar panel technology leading to increased efficiency and affordability. The residential sector is expected to be a major contributor to market growth, fueled by homeowners' increasing adoption of rooftop solar systems for both cost savings and environmental reasons. However, the commercial and industrial (C&I) sector also presents a substantial opportunity, with businesses increasingly seeking to reduce their carbon footprint and operational costs through solar installations. The utility-scale sector, although currently smaller, holds significant long-term potential, particularly as New Zealand strives to achieve its renewable energy targets. While challenges remain, including land availability for large-scale projects and potential grid integration issues, the overall outlook for the New Zealand solar energy market is exceptionally positive. Growth in the New Zealand solar market is anticipated to be uneven across regions, with urban areas likely witnessing faster adoption rates than rural areas due to higher electricity consumption and easier access to installation services. Competition among established players like Meridian Energy, JinkoSolar, JA Solar, and emerging companies is likely to intensify, leading to further price reductions and increased innovation. The market is segmented by end-user type (residential, C&I, utility), allowing for tailored strategies catering to the unique needs of each sector. Future growth will depend on continued government support, further technological advancements, and effective public awareness campaigns to address any remaining consumer hesitancy. Further research into specific regional performance and detailed regulatory landscape analysis will provide more granular insights into the future trajectory of this dynamic and rapidly expanding market. Recent developments include: May 2022: Auckland-based renewables developer Far North Solar Farm (FNSF) announced its partnership with German investment manager and asset development company Aquila Capital to develop an estimated USD 1 billion suite of large-scale solar PV projects across New Zealand's North and South islands. The company expected to commence construction on a 1 GW portfolio of large-scale solar PV projects across the North and South islands., April 2022: Contact Energy and Lightsource BP joined a partnership to co-develop grid-scale solar farms in New Zealand. Kwhai Park is expected to be the first of several planned solar farms for the Lightsource BP and Contact Energy alliance in New Zealand. The park's first phase was expected to consist of a solar farm that will span around 300 hectares of land just behind the airport's runways.. Notable trends are: Utility Sector to Witness a Significant Growth.

Graph and download economic data for Consumer Price Index: Housing, Water, Electricity, Gas and Other Fuels (COICOP 04): Electricity, Gas and Other Fuels: Total for New Zealand (NZLCP040500GPQ) from Q1 1960 to Q3 2023 about water, New Zealand, fuels, electricity, gas, CPI, price index, indexes, and price.

The Electricity Transmission and Distribution industry has faced declining revenue over the past few years because of regulatory constraints and the negative impacts of external macroeconomic factors. The transmission segment, operated by Transpower, witnessed negative revenue growth between 2019-20 and 2021-22. This trend continued in 2022-23 and 2023-24, despite climbing interest rates and revised regulations providing a slight boost to nominal revenue growth. However, it was still outpaced by inflation, putting downwards pressure on the industry's overall revenue. Despite this, the company remains an essential component of the electricity supply chain, allowing it to maintain healthy profit margins. Similar trends have occurred in the electricity distribution segment, with most businesses experiencing real revenue contractions because of limited allowable revenue growth stipulated by the Commerce Commission’s default pricing path regulation. Conversely, unregulated consumer-owned Electricity Distribution Businesses (EDBs) have performed better, experiencing increased revenue by passing on cost increases at a higher rate. Despite the challenges, downstream demand has remained strong, largely because of the stability of Rio Tinto's Aluminium Smelter and growing residential demand. This consistent end-user consumption has helped mitigate revenue volatility. Overall, industry revenue is expected to contract at an annualised rate of 1.2% over the five years through 2024-25, to $5.2 billion. This estimate includes a 0.2% bump in 2024-25. Over the coming years, a promising industry outlook will be driven by new price-quality paths for EDBs and Transpower, enabling revenue and profit margin growth. Regulated EDBs will benefit from a 37.0% increase in aggregated nominal revenue allowed by the new default pricing path (DPP4), which will be in effect from 2025-26 until 2029-30. For Transpower, a new price-quality path (RCP4) will enable an increase of more than 40.0% in allowable nominal revenue, a move justified by the Commerce Commission (Te Komihana Tauhokohoko) with the need for infrastructure renewal and increased electrification. These new price-quality paths will facilitate a recovery from the past half-decade's declining performance, as both DPP4 and RCP4 assure relatively low operating expenditure increases, promising to expand profit margins. Unregulated consumer-owned EDBs will indirectly profit from downstream electricity market inflation, passing increased transmission costs on to end consumers. However, these businesses must avoid unreasonable price increases to maintain consumer-owned status and avoid future regulation by the Commerce Commission. Overall, real revenue is estimated to increase at 5.7% per annum through 2029-30, to reach $6.8 billion.

New Zealand Electricity: Share of Emissions Priced: Including Emissions from the Combustion of Biomass: Above EUR 90 per Tonne of CO2 data was reported at 0.000 % in 2018. This stayed constant from the previous number of 0.000 % for 2015. New Zealand Electricity: Share of Emissions Priced: Including Emissions from the Combustion of Biomass: Above EUR 90 per Tonne of CO2 data is updated yearly, averaging 0.000 % from Dec 2012 (Median) to 2018, with 3 observations. The data reached an all-time high of 0.000 % in 2018 and a record low of 0.000 % in 2018. New Zealand Electricity: Share of Emissions Priced: Including Emissions from the Combustion of Biomass: Above EUR 90 per Tonne of CO2 data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s New Zealand – Table NZ.OECD.ESG: Environmental: Effective Carbon Rates: by Sector: OECD Member: Annual. The share of emissions priced above EUR Y per tonne of CO2 shows the share of emissions within a country or sector with a carbon price that exceed EUR Y in percent.

The Hydro-Electricity Generation industry has exhibited high volatility in recent years, driven by unpredictable wholesale markets affected by fluctuating gas supply, inconsistent hydro levels and escalating commodity prices. This volatility was particularly prominent during 2020-21 and 2021-22 when significant gaps in gas supplies led to price fluctuations and heightened uncertainty for generators and consumers. However, hydro generators benefited from rising wholesale prices due to their limited reliance on fossil fuels, leading to significant industry-wide profitability. Record-high rainfall levels in 2022-23 led to a spike in the supply of hydroelectricity. This pushed down wholesale prices, resulting in a 28.9% contraction in industry revenue. Throughout 2023-24 and 2024-25, wholesale prices once again jumped, driven by a historically low level of hydro-electricity output in 2024-25. Revenue declines were limited by price spikes that offset declines in output. The industry’s future was also secured in 2024-25, when major electricity generators inked a deal with Rio Tinto to continue supplying the Tiwai Point aluminium smelter through to 2044. In 2025-26, the industry’s landscape was radically altered by a merger between Contact Energy and Manawa Energy. The change will aim to increase price competition and efficiency while promoting more consistent pricing and less volatility. In total, revenue is expected to drop at an annualised 4.0% over the five years through 2025-26, to $3.4 billion. This includes a 9.1% decline in 2025-26, as declining wholesale prices are set to reduce revenue and profit margins. The industry needs to secure its output capacity to achieve the Central Government's aim of sourcing 100.0% renewable electricity by 2030. The recent volatility in hydro output will need to be rectified to reach this goal. However, public sector support through the listing of five hydro energy projects in the Fast-track Approvals Bill has secured a promising pipeline for the expansion of hydro capacity in the coming years. The variable nature of the wholesale market will continue to influence industry revenue considerably. Although prices are expected to experience moderate growth, pushing up profit margins, increased competition from other renewable generation industries could potentially exert downward pressure on prices, creating a cloud over the industry’s future. Demand-side factors like steady population growth and the government's clear decarbonisation targets will continue to provide dependable demand for New Zealand's hydro-electricity generators. Over the five years through 2030-31, revenue is forecast to rise at an annualised 2.9% to settle at $4.0 billion.

Graph and download economic data for Consumer Price Index: Housing, Water, Electricity, Gas and Other Fuels (COICOP 04): Total for New Zealand (NZLCP040000IXNBQ) from Q2 2006 to Q3 2023 about water, New Zealand, fuels, electricity, gas, CPI, price index, indexes, and price.

Graph and download economic data for Consumer Price Indices (CPIs, HICPs), COICOP 1999: Consumer Price Index: All Items Non-Food Non-Energy for New Zealand (CPGRLE01NZA659N) from 1970 to 2024 about New Zealand, core, all items, CPI, inflation, price index, indexes, and price.

New Zealand NZ: Mean Feed in Tariff For Solar PV Electricity Generation data was reported at 0.000 USD/kWh in 2019. This stayed constant from the previous number of 0.000 USD/kWh for 2018. New Zealand NZ: Mean Feed in Tariff For Solar PV Electricity Generation data is updated yearly, averaging 0.000 USD/kWh from Dec 2000 (Median) to 2019, with 20 observations. The data reached an all-time high of 0.000 USD/kWh in 2019 and a record low of 0.000 USD/kWh in 2019. New Zealand NZ: Mean Feed in Tariff For Solar PV Electricity Generation data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s New Zealand – Table NZ.OECD.GGI: Environmental: Environmental Policy, Taxes and Transfers: OECD Member: Annual.