As recently as 2022 the government of New Zealand was smugly happy that the green portion of their energy consumption was at an all-time high: geothermal (18%) and hydro (60%) accounted for 78% of their electricity consumption. In their green euphoria, the government had decommissioned 600 MW of gas plant capacity.
Only two years later, all hell has broken loose. Wholesale prices in the New Zealand electricity market have soared over recent weeks, climbing as high as NZ$1,000 (US$ 910) per MWh. Compare this to U.S. prices, June 20: New England $162/MWh; New York City $86/MWh, Northern California $45/MWh.
Xinhua coverage quoted Energy Minister Simeon Brown that: “New Zealand currently has an energy shortage. The lakes are low, the Sun hasn’t been shining, the wind hasn’t been blowing, and we have an inadequate supply of natural gas to meet demand,” adding that “it is devastating for New Zealand’s manufacturing and export sectors.”
