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 has enabled the early development of hydropower. Hydropower accounts for as much as 60% of the country's total electricity generation.

Taking advantage of its geologically active volcanic landscape, New Zealand has also established 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 accounts for about 20% of New Zealand's total electricity generation, serving as a baseload power source.

Thanks to its abundant hydropower and geothermal energy resources, New Zealand has become an international model for eco-friendly energy. As of 2024, the proportion 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 plummeted. In the third quarter of 2024, hydropower generation fell by 17% compared to the same period the previous year, marking the lowest level since 2001.

The New Zealand government was left with no choice but to implement extraordinary measures. In September 2024, New Zealand decided to restart the Huntly thermal power plant, which had been idle. Huntly is the country's only thermal power plant and is capable of using both gas and coal. Thanks to the Huntly plant, New Zealand was able to overcome the energy crisis. That year, coal-fired power generation in New Zealand increased by 118%. Its share of total electricity generation also 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 the Huntly power plant, announced plans to completely close its coal-fired facilities by 2018.

However, due to insufficient power supply, Genesis Energy has continued to postpone this timeline. Locally, there is talk that the Huntly plant may remain in operation until 2035. As reservoir levels drop and wind conditions become less favorable, there is growing support for maintaining coal-fired power plants as a safeguard for national energy security in the face of reduced renewable energy output.

In November of last year, the South Korean government officially joined the PPCA at the 30th United Nations Climate Change Conference of the Parties (COP30), pledging to 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 South Korea.

The 11th Basic Plan for Long-term Electricity Supply and Demand calls for the closure of 40 of these coal-fired power plants by 2038, but the pace will need to accelerate. According to government policy, the remaining 21 plants must also be shut down by 2040. Specific plans are expected to be included in the 12th Basic Plan for Electricity, which will be released this year. On December 31 of last year, the Taean thermal power plant was shut down for the first time under the new administration.

Coal-fired power plants have supplied electricity at low cost and contributed significantly to South Korea's industrial development during its period of rapid growth. On the other hand, they have also caused considerable side effects, including greenhouse gas emissions, hazardous substances, and fine dust pollution. It is undeniable that South Korea must join the global movement for coal phase-out and energy transition.

However, it is worth considering whether the permanent closure and dismantling of all coal-fired power plants is truly the best solution. As seen in the recent collapse at the Ulsan thermal power plant, the demolition of aging coal-fired plants can be extremely dangerous work.

Even in New Zealand, a model eco-friendly country, coal-fired power plants cannot be easily closed. Perhaps South Korea should also explore ways to utilize coal-fired power plants as a "last safety net" in times of energy emergencies.