This winter is different: Lessons from NZ's 2024 electricity crisis

The electricity market responded when hydro lakes were low and gas was scarce. (Image: NZME)

Thu, 10 Jul 2025

Just last winter, New Zealand’s electricity market faced an extraordinary test.A perfect storm combined high demand, low wind generation and a fuel shortage caused by low hydro storage and limited gas supply.Wholesale electricity prices spiked.Hydro and thermal generators faced fuel constraints and raised offer prices to conserve resources, driving prices sharply higher.Electricity prices surged past $800 a megawatt hour (MWh) and some industrial energy users scaled back. The situation and response had all the markings of a market in cris...

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