New Zealand faces ongoing electricity price volatility, with the New Zealand Infrastructure Commission calling for more investment in long-term renewable capacity. Falling costs for wind and solar farms, along with cheaper geothermal build costs compared to global averages, make new generation more affordable, but policy uncertainty and declining gas supplies are dampening investment. The article highlights the need for predictable regulatory settings, including resource consenting policies and coordination among agencies, to give infrastructure providers confidence. Key uncertainties include future electricity demand from EVs and data centers, and the outlook for the Tiwai Point aluminum smelter. Expanding reliable generation is critical for a low-carbon economy.
