Modest, steady growth has characterised Aotearoa New Zealand electricity demand over recent decades. The response has been a regulatory and investment system that incentivised just-in-time investment, not overbuilding to protect consumers that bore the costs of investment.
The need to meet legislated emission reduction targets, as well as emerging technologies and changing consumer preference, has led to a rapid acceleration in the electrification of transport and industry.
Our electricity sector is currently served by a large asset base, with substantial upcoming renewal requirements. Decarbonisation, through electrification, has created a meeting of tides from a network investment perspective. New Zealand’s current way of enabling investment is no longer fit to meet a challenge of this scale.
In this report we cast a spotlight on a range of solutions, involving both the public and private sector, to address emerging challenges for network finance.
Financing investment in New Zealand’s electricity networks
Investment frameworks for consideration.
Possible options to stimulate network investment
We consider three overall themes of possible intervention to promote greater investment:
The transition to a low carbon economy holds many opportunities for New Zealand, as well as industry collaboration to meet the challenges ahead.
KPMG New Zealand is well positioned to assist organisations in navigating the path to net zero and the complex issues facing the energy sector.
