The future of our electricity system
Our electricity system is changing. In the future, we'll have more choices about how we manage our power.
Our electric future
Aotearoa New Zealand’s electricity system is transforming. We’re shifting from large scale electricity generation at a few sites across the country to smaller scale renewables and other energy resources located closer to communities.
In the energy sector we call this change ‘decentralisation’. By 2040, decentralisation can unlock more affordable, clean, secure and resilient energy.
And the reasons for change are getting stronger:
- The costs of small-scale renewable power generation such as rooftop solar and batteries are dropping quickly
- Consumers are more focused on energy resilience to disruptive events and on energy affordability
- Renewable generation, storage and ‘flexible demand’ are becoming more necessary and valuable.
About decentralisation
The shift towards decentralisation is observed through three inter-related global trends and enabled by one critical success factor - consumer trust and engagement.
These trends are:
- Decentralised or ‘distributed’ energy resources (DERs)
- Decentralised or ‘democratised’ energy planning, decision making and ownership
- Digitalisation of ‘smart’ systems.
How decentralisation will benefit us
A more decentralised future could unlock a range of positive outcomes for Aotearoa New Zealand. It can help with affordability, energy security, and decarbonisation and also has the potential to empower communities and local economies.
Possible challenges
Decentralisation also presents some challenges. These include integrating systems, funding and finance barriers, ensuring equitable access to benefits, and creating appropriate governance structures and regulation.
Join the discussion
We want your ideas on 'giving power back to the people'. The Electricity Authority invites your feedback on our decentralisation green paper.