In 2024, the average cost of electricity for residential use was around 33.06 New Zealand cents per kilowatt-hour. This was a slight increase in the cost of electricity reported in the previous year, placing New Zealand in a middle position in the global ranking of household energy prices. New Zealand’s electricity consumption While the leading sector to consume electricity in New Zealand is the industrial sector, household 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 80 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, 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 2024, the average cost of electricity for industrial use was around 17.8 New Zealand cents per kilowatt hour. This was an increase in the electricity cost compared to the previous year.

In 2024, the average cost of electricity for commercial use was around 21.34 New Zealand cents per kilowatt hour. This represented an increase in the electricity cost in that sector compared with the previous year.

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.

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.

Graph and download economic data for Consumer Price Index: OECD Groups: Energy (Fuel, Electricity, and Gasoline): Total for New Zealand (CPGREN01NZA657N) from 1960 to 2022 about New Zealand, fuels, electricity, energy, gas, CPI, price index, indexes, and price.

Consumption of electricity in New Zealand was dominated by the industrial sector, holding a 44 percent share of total consumption. Within the industrial sector, basic metal mining had the highest electricity demand.

New Zealand’s electricity supply

Over 80 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 50 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.

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.

New Zealand Producers Price Index: Input: Electricity, Gas and Water: Electricity and Gas Supply data was reported at 1,221.000 Dec2010=1000 in Mar 2018. This records a decrease from the previous number of 1,246.000 Dec2010=1000 for Dec 2017. New Zealand Producers Price Index: Input: Electricity, Gas and Water: Electricity and Gas Supply data is updated quarterly, averaging 992.000 Dec2010=1000 from Jun 1994 (Median) to Mar 2018, with 96 observations. The data reached an all-time high of 1,870.000 Dec2010=1000 in Jun 2008 and a record low of 733.000 Dec2010=1000 in Sep 2000. New Zealand Producers Price Index: 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.I012: Producers Price Index: Dec2010=1000.

Graph and download economic data for Consumer Price Index: Housing, Water, Electricity, Gas and Other Fuels (COICOP 04): Water Supply and Miscellaneous Services Relating to the Dwelling: Total for New Zealand (NZLCP040400GPQ) from Q3 2002 to Q3 2023 about water, New Zealand, miscellaneous, fuels, supplies, electricity, gas, services, CPI, price index, indexes, and price.

The New Zealand electricity supply meter market declined to $17M in 2023, remaining constant against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption saw a noticeable contraction. Electricity supply meter consumption peaked at $55M in 2014; however, from 2015 to 2023, consumption failed to regain momentum.

In 2023, the New Zealand electric blanket market decreased by -4% to $3.6M for the first time since 2020, thus ending a two-year rising trend. In general, consumption showed a slight downturn. As a result, consumption attained the peak level of $5.2M. From 2017 to 2023, the growth of the market remained at a somewhat lower figure.

Fossil fuel generators are contending with New Zealand's transition to renewable energy sources, which is continuing at pace despite a temporary surge in revenue and profitability for New Zealand's ageing fossil fuel power stations. Prices ballooned off the back of lower hydro output, outages and tight domestic gas supply. The Russia-Ukraine conflict also boosted generation costs, with coal prices soaring. Nonetheless, output at coal-fired power stations surged in 2020-21 and 2021-22, allowing the industry to drive up revenue, while high prices resulted in a spike in industrywide profitability. However, this surge proved temporary. As the supply situation stabilised, output collapsed, especially at coal-fired power stations. Prices also fell, which drove heavy declines in profit margins and revenue over the year. Overall, industry revenue is expected to decline at an annualised 8.9% over the five years through 2023-24, to $657.2 million. This includes an anticipated uptick of 9.6% in 2023-24, which is largely a product of higher prices on the wholesale market. The move to renewable forms of energy – with strong government policy support – has led to a long-term decline in fossil fuel electricity generation. Renewable sources have gradually taken up a larger share of total electricity generation, as New Zealand aims for 100% renewable-sourced electricity by 2030. Hydro is New Zealand's key electricity source and roughly half the nation’s electricity is generated from hydro-powered plants. That's why lower-than-expected rainfall has provided a temporary reprieve for coal-fired generators in recent years. Yet, in the December quarter of 2022, coal-fired generators’ output fell to the lowest level since 1990. Renewables accounted for over 90% of the nation’s electricity supply. New Zealand's accelerating shift to renewable electricity leaves little room for fossil fuel generators over the long term. Industry revenue is projected to decline at an annualised 4.3% over the five years through 2028-29, falling to $526.2 million. The only saviour for the industry is the expectation that prices will remain elevated. However, the shift to renewables is forecast to accelerate over the coming years, driving falling output and fossil fuel power station closures.

Graph and download economic data for Consumer Price Indices (CPIs, HICPs), COICOP 1999: Consumer Price Index: Electricity, Gas and Other Fuels for New Zealand (NZLCP040500IXOBQ) from Q1 1955 to Q4 2024 about water, New Zealand, fuels, electricity, gas, CPI, price index, indexes, and price.

New Zealand Labour Cost Index: Exclude Overtime: Electricity, Gas, Water & Waste data was reported at 1,186.000 Jun2009=1000 in Sep 2018. This records an increase from the previous number of 1,177.000 Jun2009=1000 for Jun 2018. New Zealand Labour Cost Index: Exclude Overtime: Electricity, Gas, Water & Waste data is updated quarterly, averaging 1,105.000 Jun2009=1000 from Jun 2009 (Median) to Sep 2018, with 38 observations. The data reached an all-time high of 1,186.000 Jun2009=1000 in Sep 2018 and a record low of 1,000.000 Jun2009=1000 in Jun 2009. New Zealand Labour Cost Index: Exclude Overtime: Electricity, Gas, Water & Waste 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.G013: Labour Cost Index: Exclude Overtime: By Industry: Jun2009=1000.

In 2023, around 9.52 thousand gigawatt hours of electricity were consumed in the commercial sector in New Zealand. This marked an increase in the commercial electricity consumption in the nation compared to the previous year.

Graph and download economic data for Purchasing Power Parity Converted GDP Per Capita Relative to the United States, G-K method, at current prices for New Zealand (PGDPUSNZA621NUPN) from 1950 to 2010 about New Zealand, PPP, per capita, and GDP.

New Zealand Producers Price Index: Input: Electricity, Gas and Water data was reported at 1,219.000 Dec2010=1000 in Mar 2018. This records a decrease from the previous number of 1,239.000 Dec2010=1000 for Dec 2017. New Zealand Producers Price Index: Input: Electricity, Gas and Water data is updated quarterly, averaging 962.000 Dec2010=1000 from Jun 1994 (Median) to Mar 2018, with 96 observations. The data reached an all-time high of 1,754.000 Dec2010=1000 in Jun 2008 and a record low of 720.000 Dec2010=1000 in Sep 2000. New Zealand Producers Price Index: Input: Electricity, Gas and Water 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.I012: Producers Price Index: Dec2010=1000.

In 2024, the New Zealand power tool market decreased by -5% to $75M, falling for the third consecutive year after six years of growth. Over the period under review, consumption, however, saw a pronounced increase. As a result, consumption reached the peak level of $132M. From 2022 to 2024, the growth of the market remained at a lower figure.

In 2023, the amount of condensers for steam or other vapour power units exported from New Zealand soared to 9.1 tons, with an increase of 1,653% against the year before.