Energy
is an essential ingredient for the economic and social prosperity of any
country. Energy consumption highlights the economic prosperity or the healthy
functioning of any country. The energy markets and policy frameworks have
witnessed immense changes in New Zealand in the past decade. New Zealand energy
market is a perfect example of an effective ecosystem. New Zealand has ample
amount of energy resources to meet its need and notably, it is bestowed with
many renewable energy resources. New Zealand has one the highest production
capability of geothermal energy and has huge hydro power potential. In recent
years market has been able to ensure supply stability thereby ensuring that no
unexpected price hikes take place. The leading players in energy segment are
Meridian Energy Ltd, Genesis Energy Ltd, Contact Energy Ltd, Mercury NZ Ltd,
Infratil Ltd
According
to the study, ‘New
Zealand Power Market Outlook to 2030, Update 2018 - Market Trends, Regulations,
and Competitive Landscape’, Although New Zealand has both ample
renewable and non renewable resources, it imports some of its energy
requirements from other country in order to meets in domestic demand. The
country actively exports fossil fuels which improves the overall revenue of the
government. However due to the requirement of importing, New Zealand is
rendered dependent on factors and forces that are outside its control.
Coal
Production has witnessed a falling trend since the past 5 years at in 2016; it
was reported to be at an all time low. The total coal production in the country
fell as compared to last year because of fall in production destined in
Northern Islands and international markets. The falling coal production in the
northern region can be attributed to lower demand for electricity generate via
coal. The production in the western region is primarily used for export
purposes however due to falling international coal prices; the production in
this region also saw a decline. The coal generation in other parts of the
country rose but was not high enough to lift the overall market volume.
New
Zealand’s oil and gas production dates back to the 1950s. The modern industry
in New Zealand is built on new age technological infrastructure and competitive
global oil and gas regime. New Zealand saw a huge production in its oil and gas
in the late 20th century and between 2005 -2020, however this rising trend saw
a downturn post 2010. In 2016, the oil production fell which can be attributed
to 2 month shutdown of Maari field after a crack was discovered in well head
platform. Oil exports also fell however; Imports witnessed a rise due to
increased demand for diesel. The domestic transportation industry is the
largest consumer of oil and gas.
Renewable
energy sources in New Zealand include hydro, wind, geothermal, solar, woody
biomass, biomass and liquid bio fuel. Overall rising trend was recorded in
renewable energy production. High electricity production in 2016 from hydro was
a key driver for causing this increase. In the recent years, a substantial portion
of electricity generation is by renewable energy resources. Wood biomass has
also emerged with a huge share in overall energy production via renewable
sources.
Due
to favorable climatic conditions, the over demand and supply of electricity
fell slightly in 2016. The Electricity market is regulated by the Electricity
Industry Participation code which is administered by Electric Authority.
Electric Authority was set up in 2010 to replace Electricity Commission.
The
trends reveal that New Zealand is one of the few countries that are actually
shifting towards renewable energy resources due to various environmental
hazards associated with non renewable sources. The future for renewable energy
can be characterized by high growth rate whereas uncertainty still looms over
sources that are nonrenewable in nature.
To know more, click on the link below:
Contact
Us:
Ken Research
Ankur Gupta, Head Marketing &
Communications
0124-4230204
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