The objective is to conserve the limited natural gas supplies for essential industries, which cannot easily switch to alternative sources
Wellington – New Zealand is forced to take a step back in its energy transition: to cope with the worst gas shortage of the century, the government has announced a plan to temporarily increase the use of coal in electricity production. The objective is to conserve the limited natural gas supplies for essential industries, which cannot easily switch to alternative sources.
The decision, communicated by the Minister of Resources, Shane Jones, involves increasing the activity of the country’s only coal-fired power plant, Huntly, which can also run on gas. Jones did not rule out the construction of a new coal-fired power plant in the medium term either. This reversal represents a hard blow for the nation’s climate goals, as coal is the most polluting fossil fuel.
The crisis is aggravated by the fact that estimated gas reserves have decreased by over a quarter in 2024. As a long-term solution, the center-right government has revoked the ban on oil and gas exploration introduced in 2018 and is working to accelerate renewable energy and geothermal projects. In parallel, the construction of an LNG import terminal is being planned to ensure a stable supply.
While waiting for the new gas supplies to become operational, the massive use of coal is seen as a necessary evil to avoid an energy deficit and protect industrial productivity, marking a moment of strong tension between immediate economic needs and long-term environmental commitments.
