The 2025 Country Issues Map polled energy leaders from across the broader energy sector to capture a real-time picture of the challenges that concern them most and the priorities that demand their daily attention.
According to the report, affordability, carbon pricing, and demand management are the leading energy concerns in New Zealand.
“Affordability being the dominant concern on the 2025 map is no surprise given the strain placed on the electricity sector during last year’s dry winter and the compounding issue of reduced gas availability,” BusinessNZ Energy Council (BEC) executive director Tina Schirr said.
Carbon pricing is ranked prominently among the key uncertainties. As stated in the report,, “Carbon prices in New Zealand have been bumpy over the last few years due to a combination of factors. The Emissions Trading Scheme (ETS) is the primary mechanism in NZ for carbon pricing, but government interventions have created instability.”
An oversupply of New Zealand Units (NZUs) combined with investor caution has caused carbon price fluctuations in New Zealand to become unpredictable, contributing to the uncertainty highlighted in the 2025 Country Issues Map.
“As New Zealand continues its decarbonisation efforts, the carbon price is an important component driving the countries efforts towards net carbon zero.”
Meanwhile, Schirr said gas users will persistently encounter challenges in finding viable alternatives.
“However, there is growing acknowledgement that grid-scale storage and demand response measures can help reduce supply risks, especially during dry years.”
“How New Zealand manages the energy trilemma – balancing security, sustainability, and equity – has become an increasing area of concern in these reports. Uncertainty over gas reliability is now a key threat to security of supply and is affecting affordability across the wider industry,” she added.
Moreover, despite their crucial role in creating lasting public support for energy transitions, Schirr said engagement and energy literacy remain low in terms of both uncertainty and impact.
“On the bright side, infrastructure concerns that dominated previous years have eased somewhat, but transmission grids and long-term planning remain high-priority actions.”
“New Zealand also retains its position as a global energy innovator.”