Managing Director & Senior Partner
The electricity sector in Aotearoa, New Zealand, contributes up to 70% of the gross emissions reductions required under the country’s 2050 net zero carbon target.
This independent report by BCG presents a whole-of-sector view of the electricity sector in Aotearoa, New Zealand, which plays a key role in the country’s emission reduction plan, as the industry can help reduce 70% of carbon emissions required under the country’s net zero carbon target. This report outlines a credible pathway to achieving New Zealand’s decarbonization objectives through more renewable generation and the electrification of transport and heating. Doing so will require unprecedented investment, but could result in lower household electricity bills due to improved energy efficiency thanks to overall fuel savings from electric vehicles.
To reach net zero and secure a more sustainable future, the 2020s is the critical decade. With decisive early action and rapid transformation, the sector can achieve close to 100% renewable electricity by 2030 and abate 22 million tonnes of CO2-e annually by 2050.
The following infographic conveys what needs to be delivered each decade, along with six recommendations to achieve net zero.
BCG was commissioned to write this report on behalf of several participants in New Zealand’s energy sector, all of whom contributed their insights, conclusions, and recommendations. Concept Consulting conducted the quantitative modeling of pathways; RSM provided probity assistance to ensure data accuracy; and Russell McVeagh oversaw compliance with confidentiality requirements among sector participants.
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