BRIEF DESCRIPTION OF THE COUNTRY'S RELATIONSHIP WITH SDG 7 

New Zealand is a renewable-energy pioneer, particularly in hydropower and geothermal energy. The country has one of the cleanest electricity systems among developed economies, benefiting from abundant rivers, volcanic activity and strong wind resources. In 2025, a record 88.5% of New Zealand’s electricity was generated from renewable sources, with hydropower providing the largest share and geothermal power serving as an important source of reliable baseload electricity (Ministry of Business, Innovation and Employment [MBIE], 2026a). 

New Zealand is especially notable for its pioneering use of geothermal energy. In 2021, it had the highest share of geothermal energy in both total energy supply and electricity generation among IEA member countries. Geothermal generation has continued to expand, reaching a record 9,631 GWh in 2025, while solar capacity is also growing rapidly. This diversified combination of hydro, geothermal, wind and increasingly solar power makes New Zealand an important model for SDG 7 (International Energy Agency [IEA], 2023; MBIE, 2026a). 

CURRENT CHALLENGES AND RECENT DEVELOPMENTS 

Despite its renewable-electricity leadership, New Zealand still relies significantly on fossil fuels outside the electricity sector. Transport remains heavily dependent on oil, while parts of industry continue to use fossil fuels. Consequently, modern renewables represented only 31.7% of total final energy consumption in 2025, despite providing almost 90% of electricity. Extending clean electricity into transport, industrial processes and other end uses is therefore central to New Zealand’s next stage of energy transition (IEA, 2023; MBIE, 2026b). 

Another challenge is maintaining electricity security during periods of low rainfall, when hydroelectric generation can decline and fossil-fuel generation may be needed to compensate. This occurred in 2024, when low hydro inflows contributed to increased coal use. However, record geothermal and solar generation helped renewable electricity rebound to 88.5% in 2025. Continued investment in geothermal, wind, solar, battery storage and grid infrastructure will therefore be important for maintaining New Zealand’s position as a renewable-energy pioneer while reducing its remaining dependence on fossil fuels (MBIE, 2025; MBIE, 2026a). 

LIST OF REFERENCES 

International Energy Agency. (2023). New Zealand 2023: Energy Policy Review. https://www.iea.org/reports/new-zealand-2023

International Energy Agency. (n.d.). New Zealand. Retrieved October 20, 2026, from  https://www.iea.org/countries/new-zealand

Ministry of Business, Innovation and Employment. (2026a, August 26). Electricity. Retrieved October 20, 2026 from https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/energy-statistics-and-modelling/energy-publications-and-technical-papers/energy-in-new-zealand/energy-in-new-zealand-2026/electricity

Ministry of Business, Innovation and Employment. (2026b). Energy in New Zealand 2026. https://www.mbie.govt.nz/assets/energy-in-new-zealand-2026.pdf