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Elevate Magazine
December 12, 2024

Coal Usage for Power Generation in New Zealand Soars

power plug

The New Zealand Energy Quarterly data from the Ministry of Business, Innovation, and Employment (MBIE) reveals more than 150% increase in coal usage for power generation. 

The July to September data, which was released on 12 December, showed that “with hydro generation this quarter down 16.6% to 5584 GWh—48.4% of total generation for the quarter—coal fired generation increased.”

Electricity generation from coal reached 884 GWh, marking a 156.5% increase compared to the same quarter last year. This coal-fired generation accounted for 7.7% of total electricity generation during this quarter.

While the reliance on non-renewable energy sources helped New Zealand, it led to a 31% rise in emissions from electricity generation compared to last September. 

Moreover, the country navigated the energy crisis through some measures. New Zealand’s largest gas consumer, Methanex, temporarily halted its operations. This was implemented in mid-August, with only one plant being restarted at the end of October.

Meanwhile, the New Zealand Aluminium Smelters reduced their electricity consumption to help ease the country’s energy supply constraints. “This contributed to a 10.2% decrease in industrial electricity consumption, contributing to a 2.5% (272 GWh) decrease in overall consumption for the quarter.”

The data also indicated that progress was being made toward addressing the power generation shortage.

“Increasing generation at the new Tauhara geothermal station helped geothermal power hit a record 2,363 GWh this quarter, a 15.2% increase from the September quarter 2023.”

Moreover, the full operational status of the Harapaki Wind Farm, combined with favourable wind conditions from mid-August, led to record wind generation this quarter, producing 1,094 GWh—a 17.8% increase compared to the same quarter last year.

The energy sector received previous warnings to sort out energy capacity issues, or these issues could repeat and even intensify in 2025.