Why New Zealand with 85% Renewable Energy Can't Abandon Fossil Fuels [Energy-topia]

Restarting the Huntly Power Plant Amid Power Shortages
South Korea Pledges to Phase Out Coal Power Plants by 2040
Need to Review Utilization Plans with Energy Security in Mind

New Zealand, located in the Oceania region of the Southern Hemisphere, is characterized by its mountainous terrain and numerous lakes, with evenly distributed rainfall throughout the year. This environment led to the early development of hydropower in the country. As of now, hydropower accounts for 60% of New Zealand’s total electricity production.

Taking advantage of its geologically active volcanic landscape, the country has also built geothermal power plants in various locations. In the Taupo volcanic zone on the North Island, geothermal power plants that generate electricity using underground heat and steam are a common sight. Geothermal power makes up about 20% of New Zealand’s total energy generation and serves as a base-load energy source.

Thanks to its abundant hydropower and geothermal energy, New Zealand has established itself as a global role model for eco-friendly energy. As of 2024, the share of renewable energy in New Zealand reached 85.5%.

However, in 2024, New Zealand faced an energy crisis. Dry weather that began in May continued through July, causing reservoir water levels to drop significantly. As a result, hydropower generation also plummeted. In the third quarter of 2024, hydropower output decreased by 17% compared to the same period in the previous year, marking the lowest level since 2001.

The New Zealand government had no choice but to implement extraordinary measures. In September 2024, New Zealand decided to restart the Huntly Power Station, which had been shut down. Huntly Power Station is the country’s only thermal power plant and is capable of using both gas and coal. Thanks to Huntly, New Zealand was able to overcome the energy crisis. That year, coal-fired power generation in New Zealand increased by 118%, and its share of total electricity production rose from 2% to 5%.

New Zealand is one of the founding members of the Powering Past Coal Alliance (PPCA), which was launched in 2017. In 2015, Genesis Energy, the operator of Huntly Power Station, announced plans to completely shut down its coal-fired units by 2018.

However, due to electricity supply shortages, Genesis Energy has continued to delay this timeline. Locally, there is talk that Huntly Power Station could remain in operation until 2035. Arguments are gaining traction that, in the interest of national energy security, it is necessary to maintain coal-fired power plants as a precaution against declines in renewable energy production caused by low reservoir levels and lack of wind.

In November of last year, the Korean government officially joined the PPCA at the 30th Conference of the Parties (COP30) to the United Nations Framework Convention on Climate Change. Korea pledged to the international community that it would completely phase out coal-fired power plants by 2040. As of December 2025, there are a total of 61 coal-fired power plants operating in Korea.

According to the 11th Basic Plan for Electricity Supply and Demand, 40 of these coal-fired power plants are scheduled to be closed by 2038, but the pace will need to be accelerated. Under current government policy, the remaining 21 plants must also be shut down by 2040. The specific plan is expected to be included in the 12th Basic Plan for Electricity, which will be released this year. On December 31 of last year, for the first time under the new administration, operations at the Taean Power Plant were suspended.

Coal-fired power plants have supplied electricity at low cost and contributed greatly to Korea’s industrial development during its period of rapid growth. However, they have also caused significant side effects, including greenhouse gas emissions, harmful substances, and fine particulate matter. It is undeniable that Korea must join the global trend of coal phase-out and energy transition.

Nevertheless, it is worth carefully considering whether the permanent closure and demolition of all coal-fired power plants is truly the best solution. As seen in the recent collapse accident at the Ulsan Power Plant, dismantling old coal-fired plants can be a very dangerous task.

Even in New Zealand, a model eco-friendly nation, coal-fired power plants are not being easily shut down. Perhaps Korea should also explore ways to utilize coal-fired power plants as a “last-resort safety net” in times of energy emergencies.