New Zealand‘s strong commitment to energy transition efforts shows investment in a sustainable future. The ABB Asia Pacific Energy Transition Readiness Index 2025, conducted with Sandpiper Research and Insights, surveyed nearly 4,100 professionals across 12 Asia Pacific markets, including over 200 respondents from New Zealand. The findings indicate that New Zealand is ready to lead the region in decarbonization efforts, despite facing challenges related to resources and skilled labor.
The study found that 77% of New Zealand business leaders plan to spend more than 10% of their capital on energy transition initiatives over the next five years. Energy and power generation follow at 86%, and the data centers and IT & technology sectors at 78%. This result shows a strong determination to make various industries greener. New Zealand businesses see the often uncertain geopolitical landscape as an opportunity. The research revealed that 78% of respondents view recent geopolitical changes in climate and energy transition as a chance for Asia-Pacific businesses to play a bigger role in global leadership. Additionally, 66% believe their plans remain unaffected by geopolitical shifts, showing that climate change is now a key part of their strategy.
Anders Maltesen, President of ABB Energy Industries Asia, highlighted New Zealand’s advantages during this transition, also noting that its 85% share of renewable electricity, from hydropower, geothermal, and wind energy, provides a strong foundation for regional leadership in electrification and decarbonization. Yet, he mentioned the need to adopt smart technologies and upgrade outdated infrastructure to meet the ambitious net-zero target by 2050, which requires more than a 60% increase in electricity use.
Hydropower is the most important for 68% of New Zealand respondents, followed by solar at 65%, wind at 64%, geothermal at 47%, green hydrogen at 44%, and biomass at 35%. Mr. Maltesen stressed the critical role of geothermal energy, explaining that it provides a stable power supply alongside variable sources like wind and solar, which helps maintain grid balance and consistent electricity generation. The report also acknowledged ABB’s contribution to New Zealand’s geothermal sector, specifically its delivery of a fully integrated solution for Contact Energy’s Te Mihi Stage 2A geothermal power plant, which features advanced governor control systems for real-time monitoring and predictive maintenance.
The research recommended collaboration across sectors as a key factor in getting energy transition goals. There was broad support for public-private partnerships, government incentives, and attempts to improve regional grid connections. A significant 92% of New Zealand respondents believed that business leaders could take steps to speed up the country’s decarbonization efforts. It concluded that the study mentioned focusing on smart infrastructure, digital innovation, and building a net-zero workforce. The nation’s strong commitment and strategic investments position it well to lead the Asia-Pacific region towards more sustainable future.
