New Zealand energy storage tank price

The total national hydro storage is equivalent to about 4,500GWh. This is enough to provide all electricity in New Zealand for around six weeks. As only around half of our generation is hydro powered, our full hydro storage could last about three months with no rain.

This is enough to provide all electricity in New Zealand for around six weeks. As only around half of our generation is hydro powered, our full hydro storage could last about three months with no rain. During dry periods hydro storage reduces, increasing the value of water as it becomes scarcer.

Despite New Zealand's significant hydroelectric capacity, our water storage is limited, usually providing only six weeks of coverage, and often dropping below 30 days during winter. To address this, natural gas and coal are used to manage water storage and provide a top up to meet energy demand.

The New Zealand Electricity market relies heavily on hydroelectricity, which accounts for approximately 60% of total generation in most years. This is supplemented by other baseload generation sources that are available 24/7, including geothermal, natural gas and coal.

MBIE markets manager Mike Hayward says,“New Zealand has used around 150 PJ of natural gas per year for the last two years. While New Zealand holds 8.7 years of natural gas in usable reserves, field operators only expect to extract up to 140 PJ each year for the next three years.” See this MBIE report for further details.

As of June 2024, there are 47 electricity trading companies in the New Zealand market. Most of these only supply residential customers or are extremely niche players supplying few electricity connections. Big Four's Influence: Market Control and Pricing