The New Zealand government said the global renewable energy sector is expected to draw $7 trillion in private sector investments by 2030. In the past six years, investments in New Zealand have totaled $1.5 billion.
"Coal-fired power is coming to an end in New Zealand, as the country focuses on taking the global pole position in renewables," New Zealand Energy and Resources Minister Simon Bridges said in a statement, UPI reported.
"Historically, coal has played an important role in ensuring the security of New Zealand's electricity supply, particularly in dry years where our hydro-lake levels are low. But significant market investment in other forms of renewable energy in recent years, particularly in geothermal, means that a coal backstop is becoming less of a requirement."
Utility Genesis Energy said on Thursday it's on pace to shut down its last two coal-fired power plants by December 2018, effectively marking the end of coal power in New Zealand.
The company said changing market conditions for electricity means coal power is no longer needed. Genesis Chief Executive Officer Albert Brantley said the development of lower cost renewable options, "principally wind and geothermal", coupled with low demand, spells the end to coal.
The share of electricity generated from renewable resources in New Zealand last year was 79.9%, a 5% increase from the previous year. The government attributed the rise to the growth in geothermal generation, which more than doubled nationally, in the last decade.
"New Zealand's share of renewable electricity generation is already the fourth largest in the world and the shift from coal will help us to achieve our ambitious goal of having 90% of New Zealand's electricity supply generated by renewables by 2025," Bridges said.
