By 2050, New Zealand is on track to be powered by 100% renewable energy

According to New Zealand's state-owned Transpower, by 2050, New Zealand will be able to rely entirely on renewable energy sources such as wind, solar, geothermal and hydropower to meet its electricity needs
.

Electricity providers say the share of renewables could grow from about 80 percent today to 95 percent by 2035 and 100 percent
by 2050.

According to forecasts, electricity demand is expected to grow from 42 TWh in 2020 to 70 TWh
in 2050 due to population growth and increased levels of electrification of heat and transport.
"Importantly, while electricity demand is expected to grow by 68 percent, peak demand is only 40 percent, reflecting the growing importance
of demand response solutions," the company said.
”

According to Transpower, the situation portends an overall positive global environment
.
Electrification will continue to be supported by the New Zealand Government as a top priority
in decarbonising the economy.

In this scenario, the share of solar energy will grow from 0.
2% in 2020 to 0.
5% in 2025 and 1.
7%
in 2030.
In another five years, this proportion is expected to reach 4.
3%, and by 2040 it is expected to reach 5.
7%.

By 2045, this proportion should reach 7.
6%, and by 2050, it should reach 9.
3%.

By mid-century, hydropower will meet 24.
8%, wind energy will meet 19.
6%, geothermal energy will meet 12.
5%, and other secondary renewables will meet 3.
8%.

In terms of installed capacity, solar is expected to increase from about 100 MW in 2020 to 300 MW in 2025 and 1.
1 GW
in 2030.
To date, most of the capacity deployed is expected to come from distributed generation
.
Solar installations should reach 2.
7 GW by 2035, including 1 GW of utility-scale and 1.
7 GW of distributed generation
.
The utility-scale PV share will remain unchanged at 1 GW by 2050, and distributed solar generation is expected to grow to 2.
6 GW in 2040, 3.
8 GW in 2045 and 4.
9 GW
in 2050.

"The continued decline in solar panel costs, improvements in installation processes, economic incentives, and changing societal values are expected to drive the adoption
of distributed solar," the company noted.
”

Distributed storage is expected to grow from 750 MW in 2035 to 2.
5 GW
in 2050.
"The use of distributed batteries will be supported by falling costs, from the current $2,200 per kilowatt to $1,500 by 2035 and $
1,000 by 2050," the company said.
”

Utility-scale storage is expected to grow from 400 MW in 2034 to 700 MW
in 2040.
The company predicts that "utility-scale battery costs are expected to be reduced by 5% per year and can be deployed
by the end of the 2020s.
" ”

Transpower said, "Achieving 95% renewable electricity generation by 2035 is challenging, but achievable
.
For consumers, this is also the lowest-cost combination
.
However, increasing 95% of renewable electricity generation to 100% by 2050 will be extremely challenging and potentially expensive
.
”