New Zealand Wind Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The market for wind energy in New Zealand is expected to register a CAGR of more than 9% in the forecast period, 2020-2025. Factors, such as supportive government policies and efforts to meet power demand using renewables, and to decrease dependency on fossil fuel-based power generation, are expected to significantly contribute to the market growth. The declining costs of renewable technologies are becoming competitive with fossil fuel sources, and additional subsidies on renewables are driving the renewable market further. On the other hand, stagnant growth in the wind energy installations due to the absence of any new initiatives and demand and limited power capacity by variable renewable energy sources and other factors are expected to hinder the growth of the market in the coming years.
· Although wind energy growth in New Zealand has been stagnant till 2019, with more than 1300 MW of consented wind projects and more than 500 MW of applied wind projects are going to drive the wind market during the forecast period.
· The Government of New Zealand is aiming to achieve 90% of its electricity generation from renewables by 2025 by its National Power Scheme, 2011. Under which emphasis on different renewables sources, including on wind energy, is given. This, in turn, is expected to create significant opportunities for the players involved in the market in the near future.
· New Zealand, with its ambitious upcoming renewable projects, is all set to achieve its renewable growth of 100% electricity generation from renewable by 2035. New Zealand has significant wind projects under construction that are expected to become operational in the forecast period.
Key Market TrendsWind Energy Growing as Major Source of Renewable Energy· With a capacity of 690 MW of energy by the end of 2019 and a share of around 10% in terms of installed renewable capacity, wind energy holds an essential place in the New Zealand renewable market.
· Wind farms, like Project West Wind and Tarura wind farm, are major operational projects in 2020, with an annual average generation of 550 GWh and 650 GWh, respectively. Apart from these two, 17 other wind farms are currently in operation, contributing significantly to the New Zealand energy sector.
· The wind energy market companies have been able to install taller wind turbines due to improvements in the wind turbine materials used, which allows the turbines to exploit higher altitude winds. Moreover, these new turbines have larger blades and, hence, can sweep more area than the smaller turbines. The growing size of the wind turbines has helped in lowering the cost of wind energy, indicating that it is economically competitive with fossil fuel alternatives.
· Over 1,800 MW of wind generation capacity was consented in 2019, with a further 755 MW either applied for consent or on hold. This brings the sum of potential new wind generation capacity to 2,550 MW. This addition in capacity is estimated to increase the wind share considerably.
Upcoming Projects and Government’s PoliciesThe New Zealand wind energy market is partially fragmented. The major companies include Vestas Wind Systems A/S, Siemens Gamesa Renewable Energy SA, Tilt Renewables Ltd, General Electric Company, and Meridian Energy Limited.
Additional Benefits:Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook