Market Trends of New Zealand Wind Energy Industry
This section covers the major market trends shaping the New Zealand Wind Energy Market according to our research experts:
Wind Energy Growing as Major Source of Renewable Energy
With a capacity of 690 MW of energy by the end of 2019 and a share of around 10% in terms of installed renewable capacity, wind energy holds an essential place in the New Zealand renewable market.
Wind farms, like Project West Wind and Tarura wind farm, are major operational projects in 2020, with an annual average generation of 550 GWh and 650 GWh, respectively. Apart from these two, 17 other wind farms are currently in operation, contributing significantly to the New Zealand energy sector.
The wind energy market companies have been able to install taller wind turbines due to improvements in the wind turbine materials used, which allows the turbines to exploit higher altitude winds. Moreover, these new turbines have larger blades and, hence, can sweep more area than the smaller turbines. The growing size of the wind turbines has helped in lowering the cost of wind energy, indicating that it is economically competitive with fossil fuel alternatives.
Over 1,800 MW of wind generation capacity was consented in 2019, with a further 755 MW either applied for consent or on hold. This brings the sum of potential new wind generation capacity to 2,550 MW. This addition in capacity is estimated to increase the wind share considerably.
Upcoming Projects and Government’s Policies
- New Zealand launched Energy Efficiency and Conservation Strategy (NZEECS) for the period 2017-2022, which focuses on the promotion of energy efficiency, energy conservation, and renewable energy.
- The Government of New Zealand also implemented the National Policy Statement for Renewable Electricity Generation, which applies to renewable electricity generation activities at any scale. It covers the construction, operation, and maintenance of structures associated with renewable electricity generation.
- Wind energy had generated 2.0 TWh in 2017 and 2018, producing a considerable amount of electricity compared to other renewable sources generating 8.0 TWh of electricity.
- The most ambitious project of New Zealand in the forecast period is the Castle Hill Wind Farm, which is likely to involve the construction of up to 286 wind turbines with a potential capacity of up to 860 MW, which would provide enough electricity to supply over 370,000 households.
- The upcoming projects and visionary policies of the New Zealand government are expected to drive New Zealand toward a global leader position in wind energy.
