Where does your power come from?

New Zealand's green grid

New Zealand has a privileged position in the world with over 80% of our electricity generated by renewable sources of energy. Most of our electricity comes from wind, water or geothermal. Non-renewable sources tend to be the last generation sources to be utilised in our system, only when it is absolutely needed to maintain power to our homes and businesses. As a country, we are well on the way to achieving the Government’s 90% renewables target – something that not many countries could attest to.

To see how much renewable energy is being generated at any point in time, look here at this great tool from the System Operator at Transpower.


WHAT DO ELECTRICITY RETAILERS DO?

Behind the light switch: look here to see how retailers simplify New Zealand’s complex electricity system for customers


Understanding New Zealand's electricity market

Electricity is an everyday commodity that can be bought, sold or traded. The electricity market is the system that enables this and it is traded at a wholesale level in a spot market. This market is run by the Electricity Authority together with a Memorandum of Understanding with the Ministry for Business, Innovation and Employment. Electricity spot prices can vary greatly across trading periods, demand, supply, location and season.

New Zealand's electricity market is split into the following areas:

  • administration and market clearing
  • regulation
  • generation
  • transmission
  • distribution and retailing

ERANZ's work focuses on retail.