A BusinessNZ Energy Council (BEC) report has placed New Zealand fifth out of 16 countries in a comparative analysis of energy systems.
The study assessed affordability, security, and sustainability against a diverse group of nations. The BEC says New Zealand cannot afford to slow its progress. The council highlights the need to maintain international competitiveness while moving towards net-zero emissions.
Global Energy Benchmarking and Competitive Positioning
The New Zealand in a Changing Energy World – Benchmarking New Zealand’s Energy System report evaluates New Zealand’s standing among 15 other nations, selected based on economic and geographic similarities, trading connections, and past World Energy Council trilemma rankings. BEC Executive Director Tina Schirr described the release as timely.
“As NZ continues its energy transition, pressures to maintain an affordable and secure energy system are climbing. Within this context it is important to keep track of how the country is performing on the global stage,” she said.
Industry Benchmarking in the Absence of the Trilemma Report
The World Energy Council’s annual trilemma report has been a key reference for comparing energy systems worldwide for more than a decade. However, the report is on hold due to major overhauls this year.
“While not a direct replacement for the trilemma report, our research has benchmarked NZ against a diverse group of countries, selected on the basis of top and bottom trilemma placings, economic and geographic similarities, and importance as trading partners,” Schirr said. According to Schirr, the aim was not to produce a strict ranking but to identify where New Zealand can learn from other nations.
International Lessons for New Zealand’s Energy Strategy
The report highlights notable approaches from other countries:
- China: Cross-subsidised pricing to help address energy hardship.
- Ireland: Effective economic management despite relatively high energy prices.
- Pakistan: Challenges created by capacity payments in its energy sector.
- Iceland: Achieving nearly 80% renewable energy consumption.
- Multiple nations: Different strategies for maintaining energy security.
The report found that New Zealand placed 5th out of the 16 countries considered — a strong result but one with room for improvement.
“Although the primary purpose of this report is not to rank countries but rather to highlight opportunities for improvement, it is noteworthy that NZ performs well, achieving an overall ranking of 5th within the 16 countries considered,” Schirr said.
Maintaining Balance Across Affordability, Security, and Sustainability
The BEC stressed that balancing these three pillars will be essential for the country’s future. “Continued improvement when compared to NZ’s international peers is essential for ensuring NZ business competitiveness while continuing the push towards net-zero emissions,” Schirr said.
The report suggests that learning from global examples — whether through Iceland’s renewable achievements or China’s social pricing strategies — could inform policy and industry decisions in New Zealand.
Ongoing Monitoring and Industry Engagement
The BEC plans to keep monitoring New Zealand’s energy performance through its own benchmarking, with the trilemma report unavailable this year.
The council said it will use the findings to support policy discussions and encourage investment in solutions that maintain both competitiveness and sustainability.