New Zealand is on track to make history by achieving 100% renewable electricity by 2040. Currently, 60% of the country's electricity is generated from hydropower, and despite recent droughts, New Zealand remains confident in reaching this ambitious goal. The secret? A smart mix of market-driven initiatives and substantial investment in renewables.

Over the past 15 years, New Zealand has invested more than 10 million NZD into renewable energy, boosting its share of the energy market from 65% to 88%. Unlike many other nations, this progress hasn’t been driven by government incentives but by simple market economics, as explained by Neal Barclay, CEO of Meridian Energy. The country’s shift to electric power, including the rise of electric vehicles (which made up 15% of car sales in February 2025), has naturally increased the demand for clean energy.

While hydropower remains New Zealand's largest renewable energy source, investments in wind and solar energy are also paying off. Wind and solar power production is expected to grow by over 60% in the next three years alone. With over 140 countries pledging carbon neutrality by 2050, New Zealand is set to reach that milestone a decade ahead, thanks to its abundance of renewable resources and a forward-thinking energy sector.

Photo: Te Apiti Wind Farm in Manawatu, New Zealand. Taken by Jondaar_1 via Flickr