6 days ago
New Zealand leads in energy transition but faces skills gap
A recent independent study commissioned by ABB shows that 77% of business leaders in New Zealand are allocating over 10% of their capital expenditure to energy transition initiatives over the next five years.
The ABB Asia Pacific Energy Transition Readiness Index 2025, conducted in collaboration with Sandpiper Research and Insights, surveyed almost 4,100 professionals across 12 Asia Pacific markets. The survey included responses from business, IT, and sustainability leaders who are responsible for technology, electrification and automation strategies in industries such as property and infrastructure, chemicals and refining, data centres, energy and power generation, and transportation, among others.
Investment outlook
Among New Zealand respondents - numbering more than 200 - the commitment to energy transition investment is strongest in the water and waste solutions sector (98%), followed by energy and power generation (86%), and both data centres and IT & technology (78%). The regional average for allocating over 10% of capital expenditure to such initiatives stands at 73%.
According to the study, 78% of respondents consider recent geopolitical shifts regarding climate change and energy transition as an opportunity for Asia-Pacific businesses to take a greater global leadership role. Despite these global changes, 66% believe their organisations' plans are unaffected by geopolitical developments, indicating that climate change is already a fixed consideration in their strategies.
Technology and decarbonisation "New Zealand's high share of renewable electricity – around 85%, mainly from hydropower, geothermal and wind energy – gives it a strong foundation to lead the Asia-Pacific region in electrification and decarbonisation. But to meet net-zero by 2050, electricity use must increase by over 60%, and that means there's urgency to scaling smart technologies and modernising ageing infrastructure."
This statement by Anders Maltesen, President of ABB Energy Industries Asia, underscores both the achievements and the challenges facing New Zealand as it seeks to further develop its renewable energy sector and sustainability credentials.
The research shows that technological advancement is seen as the main accelerator of the energy transition, cited by 67% of New Zealand executives. Additionally, automation and digitalisation are identified as untapped opportunities according to 42% of respondents. The growing use of artificial intelligence is also seen as having the potential to optimise energy systems and reduce emissions efficiently.
Despite these advantages, organisations are facing challenges with resourcing. The survey reveals that nearly half (49%) say they are under-resourced to meet their energy transition objectives. In addition, 59% report difficulties in recruiting skilled staff for green roles. Issues such as company reputation and a preference for retraining existing staff over hiring new employees were noted as contributing factors.
Renewables and infrastructure
Hydropower remains the most significant source of renewable energy for 68% of New Zealand respondents, followed by solar (65%), wind (64%), geothermal (47%), green hydrogen (44%) and biomass (35%). On the role of geothermal in the country, Mr Maltesen said, "Geothermal is a great opportunity for the country as it provides a stable power supply alongside wind and solar and is a key resource that can help balance the grid and provide consistent electricity generation."
The study notes ABB's involvement in New Zealand's geothermal sector through its delivery of a fully integrated solution for the Te Mihi Stage 2A geothermal power plant, part of Contact Energy's renewable investment strategy. ABB is overseeing the Governor Control system, traditionally managed by turbine original equipment manufacturers. This includes real-time monitoring and predictive maintenance, aiming to reduce downtime - an advantage for New Zealand's seismically active context.
Collaboration and future models
Collaboration across sectors is identified as a key factor in advancing energy transition goals. The research highlights strong support for public-private partnerships, government incentives, and efforts to enhance cross-regional grid connectivity. Of New Zealand respondents, 92% believe business leaders could take more action to accelerate the country's decarbonisation efforts.
The findings suggest that by prioritising smart infrastructure, digital innovation, and a net-zero workforce, New Zealand could inform global practices for sustainable living, according to the report.
