Charts and dashboards

Barriers to developing new electricity generation

This dashboard shows the challenges hindering new electricity generation projects in New Zealand.

  • Generation
  • Investment
  • Security of supply
  • Wholesale

New electricity generation

This dashboard summarises the key insights from the Electricity Authority’s 2025 Generation Investment Survey into barriers to new electricity generation projects. Key findings from the survey include:

  • Solar developers rated the consenting process as significantly more difficult than in 2023, when the previous survey was carried out
  • Securing offtake arrangements was rated the second-most significant challenge
  • Requirements under the Overseas Investment Act are no longer considered a major barrier.

About the survey

In April 2025, the Electricity Authority invited developers investing in new electricity generation to complete a survey about barriers to electricity generation development.

There were 24 survey responses, of which three were gentailers and the rest were independent developers. Projects included 14 solar or combined solar plus batteries, 13 wind projects (11 onshore and two offshore), and four batteries without solar.

We interviewed seven developers to understand the reasons behind their survey responses. These conversations provided valuable detail about the barriers they face and how these affect the timing, cost and risk of new generation projects.

We compared the results with our more comprehensive 2023 Generation Investment Survey.

About this dashboard

The below dashboard shares the findings from the Generation Investment Survey and interviews.

This work has provided valuable insights into what factors create delays, increase costs or add risk to generation investment projects. It helped the Authority identify gaps in our understanding of barriers to new generation and will inform our ongoing efforts to strengthen security of supply.

The dashboard highlights the Authority’s work to help alleviate barriers, including improving access to firming through standardised flexibility products and level playing field work. Our regulatory roadmap on battery-related work will also help manage some of the uncertainty these projects face.

What is the Authority doing to support more generation?

The Electricity Authority is committed to supporting investment in electricity generation to help meet New Zealand's future electricity needs.

Battery energy storage systems (BESS) are becoming increasingly important as New Zealand transitions to a more intermittent and variable renewables-based power system. In the survey, battery and hybrid projects were noted as an emerging area that requires further exploration.

We are working to ensure we have the right settings to unlock the benefits of BESS, while also managing the challenges they bring, as this will affect all aspects of the power system. See our regulatory roadmap for BESS.

In the survey, developers expressed appreciation for the Authority's efforts on Task Force 1D, Part 6 on network connections, and Part 6A of the Code/Part 3 of the Act about distributors moving into generation.

In January 2025, the Authority consulted on requiring gentailers to offer minimum volumes of long duration contracts that could be used to firm new generators' PPAs. Based on feedback, we believe an allocation approach is not the best solution. Instead, we think it is more effective to consider improved access to firming via the work on standardised flexibility products, the proposed level playing field measures (particularly the non-discrimination obligations), and complementary initiatives to encourage PPAs which will enable new investment without the risks associated with allocating firming volumes. We are increasing monitoring of bids and offers in the over-the-counter market, which will give us further insight into the PPA market and the impact of these initiatives.

We have consulted on the drafting of Part 6 of the Code to implement eight rule changes to make it more efficient to connect to distribution networks and upgrade existing connections. The findings from the 2023 Generation Investment Survey helped inform these proposals, including a new requirement on distributors to publish a network connection pipeline.

We are consulting on a proposal to collect and publish information on significant load and generation projects wanting to connect to distribution networks. This work is intended to help improve transparency of connections to distribution networks.