Fossil Fuel Electricity Generation in New Zealand - Industry Market Research Report

Burnt out: 100% renewable electricity targets are a crude awakening for fossil fuel generators

Fossil fuel generators are contending with New Zealand's transition to renewable energy sources. Despite this pivot, high wholesale prices have staved off recent revenue declines and provided a welcome relief for generators. Industry revenue has soared 8.3% over the past five years, including 8.4% in 2022-23 alone, reaching $1.3 billion, as profit hits 6.2%. Prices ballooned off the back of lower hydro output, outages and tight domestic gas supply. The Russia-Ukraine conflict has also boosted generation costs, with coal prices through the roof. Industry operators use raw material inputs such as coal, gas or oil to generate electricity. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.