Energy Transition Framework

Description

We're taking a close look at how New Zealand's gas system is working now, and what might need to change in the future — including how households and businesses that need gas can get it.

Why it's important

Gas is used in lots of different ways across New Zealand, and currently, not everyone who needs it can get it. By understanding the whole picture, we can make choices that work best for people and businesses across the country.

What we're doing

The Gas Working Group has now completed a third report — a system-wide assessment of the gas shortfall and the practical options to manage it, from industrial conversion through to electricity, biomass, LPG and LNG. It confirms the shortfall is real, growing, and will require coordinated action on both supply and demand over the next decade.

This builds on our earlier work: the Working Group's initial findings (August) and final report, which first identified the risk of an energy shortage as real, growing and urgent. We have also been progressing the actions from that report, including talking with Government about a long-term energy strategy, sharing insights from our energy policy survey with senior leaders across the sector (see survey here and results below), and issuing a statement explaining what the findings mean for gas users such as households and businesses (see statement here).

Next steps

We're seeking Government agreement to begin scoping a dedicated coordination mechanism for the gas transition — testing whether it's needed, and if so, how it would work in partnership across Government and system participants.

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Description

This work is focused on helping businesses — especially those that use a lot of energy — make the switch from other energy sources to electricity.

Why it's important

If large businesses can switch from fossil fuels to electricity, it strengthens the overall energy system in ways that benefit everyone, and makes a big difference in helping New Zealand lower its emissions.

What we're doing

We started by collecting information on the biggest challenges businesses face, especially around how to pay for the switch, summarised in an interim report. We are now underway across four areas looking at solutions:

  • EECA are crafting a complete customer journey for businesses looking to convert their energy use — consolidating and updating the information and support available.
  • Guidance on electricity supply contracts, including where to source information on the future pipeline and options for structuring a contract, is being drafted and tested with pilot customers.
  • The Centre for Sustainable Finance has proposed a Business Resilience Program, enabling the finance system to provide blended finance for conversion projects by leveraging government financial support.
  • ENA has led improvements to connection processes for conversion projects, and will now look at whether alternative financing for connections ahead of demand could further support commercial & industrial conversions.

Next steps

Workstream #3 has been completed through a business case submitted to Government. Workstreams #1 and #2 will be tested with pilot customers and then made publicly available in the second half of 2026. Workstream #4 will be considered by ENA members for further action, with updates provided here.

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Description

This work tracks how New Zealand's energy system is changing over time, using a consistent set of measures, so that progress on the transition is clear and can be checked against the evidence.

Why it's important

By sharing information about how the transition is progressing we can hold ourselves to account, and help New Zealanders make smart decisions about their energy use.

What we're doing

Every quarter we publish a scorecard showing how New Zealand's energy system is tracking as it changes — giving an updated picture of progress and challenges across equity, security, sustainability, build rate, pipeline, investment and smart system measures. We continue to expand how the report covers the energy system, and update it based on feedback.

Next steps

We will continue to publish and refine this tracking each quarter as new data becomes available.

Measures & Metrics report. Explore the latest scorecard data yourself in the interactive dashboard.

View the interactive report →

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Description

This work looks at how costs across the energy system affect prices for homes and businesses, and whether more needs to be done to keep energy affordable as we progress through the transition.

Why it's important

Energy costs already matter a lot to households and businesses. By reviewing what work is already happening, we can check whether anything more needs to be done now to avoid challenges in the future.

What we're doing

We have set up a working group who have looked at what is already underway and what challenges are coming. They have reviewed desktop data and heard from a range of stakeholders across affordability, flexibility and system costs.

The Cost & Affordability Working Group has now completed its Stage 1 report, which maps current activity on system cost and affordability across New Zealand's energy system. It sets out three priority areas for further work: designing affordability action against the changing system, capturing the opportunities to lower system cost, and bringing transport into the affordability frame.

The Chief Executive Steering Group has endorsed the recommendation to progress to Stage 2, which is now underway.

Next steps

Stage 2 will pull together existing analysis in each priority area to set out a clear view of where cross-sector work could add value, how it would interact with work already underway, and whether the Framework should play a convening, supporting, or coordinating role. The Working Group will provide a progress update to the Chief Executive Steering Group at its next quarterly meeting in September 2026.

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