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National has announced that, if re-elected, it will introduce a Home Energy Fund that will offer low-interest, long-term loans that are repaid through rates so households can invest in batteries, insulation and other energy resilience measures without large upfront costs. The announcement is significant not only for its support for distributed energy but because it, along with the recently announced gas transition loan scheme, marks a shift in National's traditional policy approach. Rather than relying exclusively on market-led investment, the proposed fund would see Government facilitate private investment. Unlike grant schemes, households would still repay the full cost of improvements over time, maintaining the principle that investment should ultimately be user-funded.
Read more here...
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Shifting currents: Energy infrastructure in transition |
A report released by the New Zealand Infrastructure Commission this month reinforces a message that has been growing across the energy sector for some time, that policy certainty is fundamental to attracting the long-term investment needed for New Zealand's energy transition. While acknowledging the importance of continued investment in low-cost electricity infrastructure, the report concludes that coherent policy and regulation, greater system flexibility, and improved coordination across the energy sector will be equally important to delivering an affordable, reliable and low-emissions energy system.
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Earlier this month the Government provided an update on the proposed LNG import facility, confirming that the project has progressed to the next stage with two potential providers now shortlisted. The Government also announced a significant change to the proposed funding model, confirming that the facility will no longer be funded through a levy on electricity bills. While the details of the new funding arrangement are yet to be announced, the change reflects an effort to address concerns raised. The announcement comes as a number of alternative approaches to improving dry-year resilience have been put forward by industry participants. As BEC noted in our recent media statement, addressing dry-year risk remains critical to improving energy security, reducing wholesale electricity price volatility and supporting business confidence. Whether an LNG import terminal ultimately proceeds will depend on the economics of the final proposal and how it compares with alternative options for delivering reliable firming capacity. | | | |
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MBIE has released the New Zealand Energy Quarterly summary for Q1 2026. This last quarter saw renewables accounting for 94.5% of total electricity generation making it the second quarter in a row with renewables exceeding 90%. This was driven by higher hydro, wind and solar generation. Energy-related emissions were the fourth lowest on record, helped by strong renewable generation and planned outages at the Huntly power station. Energy consumption numbers show a mixed picture. Gas use fell by 24% as lower volumes were needed for electricity generation, however industrial gas use also fell across most sectors. In contrast electricity consumption increased by 2.2% with higher demand across residential, commercial and industrial consumers. There was no material change in fuel imports through Q1 highlighting the strength of our supply chains through the conflict in the Middle East. Read more here... | | | |
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Super critical geothermal | The Government has reached another milestone in the GeoShot NZ programme, approving the release of the remaining $55 million in funding to support the drilling of New Zealand's first superhot geothermal exploratory well. While commercial deployment remains some way off, the announcement represents another example of the Government taking a more active role in supporting strategic energy projects. Superhot geothermal has the potential to unlock significantly more energy than conventional geothermal resources and, if successful, could strengthen New Zealand's long-term energy security while building domestic capability in an emerging technology with international interest. Read more here... | | | |
2026 Energy Transition Index | The World Economic Forum has released the 2026 Energy Transition Index, finding that the global energy transition is entering a new phase where security, affordability and international competitiveness are increasingly shaping policy alongside decarbonisation. Rather than following a single pathway, countries are adopting more tailored transition strategies reflecting their own resources, industry and geopolitical circumstances. This mirrors discussions BEC participated in at World Energy Week in Panama last October, where energy security and affordability emerged as equally pressing priorities to emissions reduction. This does not mean that the transition is reversing - energy security, affordability and sustainability can be progressed simultaneously. This has never been truer than right now as the closure of the Strait of Hormuz brought into focus the potential fragility of global energy supply chains. Read more here... | | | |
Although shipping through the Strait of Hormuz has partially resumed, the conflict has continued to influence global energy markets, highlighting the importance of energy security and supply diversification. While the immediate focus has been on the potential disruption to oil flows through the Strait of Hormuz, the effects are now becoming visible across the wider energy system. The International Energy Agency's June Oil Market Report reflects this changing outlook, significantly lowering its forecast for global oil demand in 2026 as higher prices, weaker economic activity and demand-saving measures begin to take effect. At the same time, global oil inventories continue to decline at an unusually rapid pace, highlighting that despite weaker demand expectations, supply remains tight and market buffers are being eroded. Together, these trends illustrate how geopolitical shocks can have far-reaching consequences for both energy security and the global economic outlook. Read more here... | | | |
ASEAN - Energy Cooperation | Against the backdrop of ongoing geopolitical tensions and disruption to global energy markets, ASEAN and Russia have adopted a new declaration strengthening cooperation on energy security. The agreement identifies rising geopolitical tensions, supply chain disruption and market volatility as growing risks to regional prosperity and commits the parties to deepen cooperation across energy trade, strategic reserves, critical infrastructure protection, and regional electricity and gas interconnection. Interestingly, the declaration explicitly supports an "all fuels and technologies" approach to the energy transition, recognising the role of renewables, natural gas, LNG, nuclear energy, low-carbon technologies and fossil fuels with emissions abatement. The agreement touches on trends identified earlier in this newsletter towards treating energy security, resilience and decarbonisation as complementary rather than competing priorities. Read more here... | | | |
Impact of European heatwave | French utility EDF announced this month that it had temporarily shut down the Golfech nuclear power plant due to weather conditions, as a heatwave across Europe pushed temperatures in the Garonne River to around 28°C. Environmental regulations limited the plant’s ability to discharge cooling water without breaching permitted temperature thresholds. At the same time, France’s transmission system operator RTE noted that increases in temperature caused increases in electricity demand, while Great Britain’s system operator NESO issued a rare summer Electricity Margin Notice to secure additional capacity. Together, these developments show how extreme weather can place pressure on both sides of the electricity system: increasing demand while also constraining some forms of generation.
Read EDF statement here... Read RTE statement here... Read NESO statement here... | | | |
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BEC is currently working on the following submissions: There are two major submissions that we are currently working on. First is the Ministry for the Environments consultation on the annual updates to the New Zealand Emissions Trading Scheme limits and price control settings. BusinessNZ and BEC continue to believe that the ETS remains the least-cost method to meet New Zealand's climate commitments and net-zero goal. However persistent regulatory uncertainty risks undermining the effectiveness of carbon price signals and delaying or preventing investment. A shift to biennial settings decisions could help reduce this risk and should move forward, but its effectiveness will depend on ensuring that adjustments to the first two years are kept to an absolute minimum. We support the Governments preferred option to offer 13 million units over the 2027-2031 period as we believe it provides a balance between ensuring we meet our emissions budgets while reducing the risk to business of sudden and rapid rises in price. BEC is also currently working on a draft submission on MBIEs consultation 'a proposed reliability obligation to manage dry-year risk' and we are still confirming our position. View BEC submissions here... | |
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Z opens first destination public EV charging site in Auckland | On the 16th June, Z Energy (Z) opened its first destination public EV charging site at WestCity Shopping Centre in Waitākere Auckland, marking an important expansion of its public EV charging network beyond the Z forecourt. The site features 120kW Kempower chargers with six charging bays, offering one CHAdeMO and five CCS connectors - providing convenient charging for EV drivers while they shop, work or travel through the area. Z CEO Lindis Jones says the site is a key milestone on Z’s journey to build a public EV charging network focused on delivering fast, convenient and reliable charging solutions for customers both now and into the future. | | | |
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Powerco have developed an industry paper on how climate scenarios are being used to inform network investment. It focuses on monitoring and managing climate-related gas transition and physical risks as New Zealand moves towards to a low emissions climate resilient state. It’s a practical example that’s not only for gas businesses, but it is for any organisation grappling with how to respond to the uncertainties of climate change in a balanced and pragmatic way. Read more here... | | | |
Fonterra has signed two new PPAs; one with ANZA power for 80% of the generation output from their Somerton Solar Farm. The Somerton Solar Farm will deliver 42 MWdc of solar generation capacity, with the site also Battery Energy Storage System (BESS) Ready, with grid connection and site infrastructure engineered to accommodate a future BESS without major rework. Once operational, the project is expected to generate approximately 65,000 MWh of renewable electricity annually. The other with NZ Clean Energy (NZCE) under which the Co-operative will purchase electricity generated by NZCE's Darfield Solar and Energy Storage Project. The agreement represents one of New Zealand's first large-scale solar PPAs between a major industrial energy user and an independent renewable energy developer.
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The Young Energy Professional Network is seeking feedback on the basis that they are looking to increase YEPNs visibility and influence, create meaningful opportunities for professional growth, spotlight high-performing early-career energy professionals, and strengthen national reach. Current ideas within the network include online showcase series and awards, cross-sector career story interviews, coordinated event across regions and pop-ups in new areas, a national forum or conference, or other. If you have feedback on what kind of initiative you believe would benefit the newer workforce, or what you would support please email: yepn@bec.org.nz | | | |
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New Infrastructure Regulation Symposium | |
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Electricity Networks Aotearoa is launching its first Infrastructure Regulation Symposium - a new forum for infrastructure and regulatory leaders navigating an increasingly complex environment. The full-day, in person event will be held in Wellington on 24 November 2026. Save the date for now, and if you're keen to find out more subscribe below. | |
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