New strategy fuels growth opportunities for the Waikato

The Waikato’s new energy strategy sets out a bold, long-term vision to strengthen energy security, reduce emissions and unlock major economic opportunities for the region.

The 2026-2050 strategy recognises the mounting pressures on New Zealand’s energy system, including high and volatile prices, declining domestic gas supply, rising electricity demand, climate change and energy hardship.

A key proposal in the strategy – available online at waikatoregion.govt.nz/regional-energy-strategy – is the creation of a regional energy forum, bringing together iwi, industry, researchers, councils and other partners to help drive implementation and innovation.

Waikato Regional Council Chair Warren Maher said the Waikato region is uniquely placed to lead the transition.

“The Waikato is already the powerhouse of New Zealand’s energy system, generating 36 per cent of the country’s electricity, most of which is exported elsewhere,” said Cr Maher.

“We hold 75 per cent of the nation’s high‑temperature geothermal resources, have strong wind and solar potential, nationally significant hydro schemes, and the country’s largest thermal station at Huntly. These advantages give our region a real opportunity to anchor new low‑emissions industries and build long‑term resilience.”

Principal Strategic Advisor Blair Dickie said the strategy makes it clear that incremental change is no longer enough.

“Our energy system is no longer fit for purpose. Short‑term fixes and tinkering around the edges won’t deliver the secure, affordable and sustainable energy future our communities and businesses need,” said Mr Dickie.

“There’s no silver bullet, and the council can’t do this alone. Progress depends on strong partnerships, leadership, national policy clarity, workforce capability, good information and consistent investment.”

The strategy also highlights the benefits of transitioning existing industries and locating new ones close to renewable energy sources. It identifies the potential for renewable energy hubs at established and strategically connected locations such as Wairakei/Taupō, Tokoroa and Huntly, helping capture more economic value locally and reduce transmission losses.

Three investment pathways were modelled – business as usual, static and dynamic – with councillors endorsing the dynamic scenario as the region’s ambition.

Mr Dickie said while it requires greater upfront investment, the returns are compelling.

“The dynamic scenario would see around $22.5 billion invested nationally to 2050, with about $4.5 billion within the Waikato region. In contrast, New Zealand spent $10.8 billion on imported fossil fuels in 2024 alone.

“Compared to business as usual, the modelling shows higher employment and wages, stronger GDP, a major increase in electricity generation, emissions falling by 77 per cent, and significantly greater resilience to future oil shocks.”

Mr Dickie said falling renewable energy costs strengthen the economic case for action.

“Onshore wind and solar are now among the cheapest electricity sources globally. That means renewable and energy‑efficient technologies can lower costs for businesses and help households avoid volatile prices.

“The old tension between economic growth and environmental responsibility is disappearing. This strategy rises to meet that moment and sets a strong vision for a more productive, prosperous and resilient Waikato.”