New Zealand Power Report Q2 2016
BMI View: New Zealand has a well developed domestic energy sector, home to a number of innovative andwell-capitalised energy firms. Hydropower leads the energy mix, accounting for over half of domesticcapacity and generation, alongside natural-gas fired thermal power plants and a growing non-hydropowerrenewables sector. The country is phasing out thermal power as it works towards a 90% renewable energy(hydropower and non-hydropower renewables) target by 2025. As such there is some concern relating toenergy security if New Zealand fails to install sufficient new capacity before old thermal power plants aretaken offline.Latest Updates And Structural Trends
New Zealand continues to focus upon the development of renewable energy. Leading domestic powerfirm Might River Power recently acquired What Power Crisis - which installs residential andcommercial solar photovoltaic systems. Construction firm Jennian Homes also announced in early 2016that all new homes would be pre-wired to cater for solar power, solar batteries and electric car chargers.
Although new hydropower capacity is not under development, existing plants are being refurbished toimprove output. Might River Power has awarded a contract to Andritz to work on the 78MW Aratiatiaplant - Andritz will design and install three generators at the plant. Work is expected to be completed in2018.
We are broadly maintaining our current forecasts for slow growth in New Zealand's power sector, withtotal generation expected to grow by an annual average of less than 1% between 2016 and 2025. As suchconcerns over energy security risk will linger and we may see more projects entering the pipeline andboosting growth prospects as the sector moves to offset the loss of thermal power capacity.
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