Unlocking the potential for batteries to contribute to security of
This article explains the importance of grid-scale batteries as New Zealand shifts towards a highly renewable electricity system. What is grid battery storage and why is it
New Zealand's electricity is mostly generated through renewable sources such as hydro and geothermal energy. Our renewable generation is supplemented by thermal 'peaker' plants when demand is high or during dry periods when hydro stores are low.
Energy in New Zealand 2025 [PDF, 2.9 MB] 45.5% of New Zealand's primary energy supply came from renewable sources, a record high. Renewable generation capacity increased by 556 MW in 2024. Up 17% or 1262 MW from 2020. 85.5% of electricity was generated from renewable sources, down from 88.1% in 2023.
This is the first study in New Zealand to use detailed and high-quality data for both solar supply and residential demand. It shows solar PV is likely to be financially viable for a significant proportion of New Zealand households, particularly for those who consume a lot of energy.
New Zealand is building more renewable electricity generation. However, renewable generation (like wind and solar) vary with the weather, so renewable electricity supply may not match up with demand. Grid scale batteries soak up excess renewable electricity, and then release it back to the grid when needed.
PDF version includes complete article with source references.
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