Strong renewable generation reduces reliance on coal and gas

 “For the third quarter in a row, renewable sources generated over 90% of electricity generation, with this quarter also seeing the highest share of renewables in a June quarter on record,” says MBIE Domains Manager Amapola Generosa.

“Strong renewable generation helped meet increasing electricity demand while significantly reducing the need for coal and gas generation.

"Overall electricity generation increased 1.9% compared with the same quarter last year, while renewable generation increased 11.4%.

"Hydro generation was up 14.7%, geothermal generation reached a record quarterly high of 2,621 GWh, and solar generation recorded its highest-ever June quarter.

"These strong renewable conditions helped reduce reliance on coal and gas generation. Gas-fired generation fell to its lowest level for a June quarter since 1981, while coal-fired generation fell to its lowest June-quarter level since 1996.

"Strong renewable generation contributed to wholesale electricity prices falling 66% compared with the same quarter last year. Residential electricity costs nevertheless increased 10%, primarily due to higher network charges supporting investment in electricity infrastructure."

Outside the electricity sector, gas production and demand continued to decline. Gas production fell 19.5%, while total gas demand fell 20.4% compared with the June 2025 quarter.

The quarter also highlighted the impact of the Middle East conflict on New Zealand fuel prices.

"Fuel imports were broadly stable, increasing 3.2% compared with the same quarter last year and included the first import into New Zealand's strategic diesel reserve.

"However, international supply disruptions increased the cost of importing fuel into New Zealand. Petrol prices rose by about 22 to 23% over the year, while diesel prices increased 69%.

"While petrol prices remained slightly below the levels seen during the 2022 global energy crisis, diesel prices were higher than those recorded in June 2022."

Full Energy Quarterly results, data and graphs are available:

New Zealand Energy Quarterly