The New Zealand Government has partnered with private investor BlackRock to establish a NZ$2 billion ($1.2 billion) climate fund to achieve the goal of becoming the first country in the world with 100% renewable electricity.
The fund will invest in solar, wind, green hydrogen and battery storage technology.
New Zealand’s Prime Minister, Chris Hipkins, lauded the pioneering collaboration with BlackRock.
“This is a first of its kind fund in the country that demonstrates the huge economic potential of New Zealand being a climate leader and our goal of generating 100% renewable electricity,” Chris Hipkins said.
He further emphasized the role of climate infrastructure fund designed to bolster local businesses, generate high-skilled job opportunities, and accelerate the adoption of green energy technologies such as solar, wind, green hydrogen, and battery storage, thereby propelling the nation toward a low emissions future.
While Tokelau, an island nation under New Zealand’s sovereignty, technically holds the distinction of being the first to exclusively harness renewable energy for its electricity needs, the focus remains on New Zealand to be the trailblazer in achieving the ground-breaking 100% renewable electricity milestone.
Energy Minister Megan Woods highlighted the investment’s potential to expedite emissions reductions in New Zealand.
“This fund will accelerate New Zealand’s emissions reductions, with a particular focus on our path to 100% renewable electricity, enabling our businesses to access greater pools of capital to develop and grow,” Woods said.
The nation’s expanding capacity for renewable electricity generation places it in a favorable position to lead the charge toward a fully renewable energy system.
BlackRock’s CEO and Chair, Larry Fink, emphasized the strategic importance of this investment initiative, which serves as a blueprint for scaling up climate infrastructure projects.
“This is the largest single-country low-carbon transition investment initiative BlackRock has created to date,” Larry Fink, chairman and chief executive at BlackRock, said in a Linkedin post.
“It will enable New Zealand companies to access greater pools of capital to build out climate infrastructure across the country’s energy system,” he added.
New Zealand Energy Mix
In New Zealand, renewable energy sources provide around 82% of electricity and around 40% of the country’s total primary energy. This includes geothermal, hydro and wind. The other 60% of energy comes from oil (32%), natural gas (21%) and a small amount of coal.
Countries Excelling in 100% Renewable Electricity
- Iceland is a world leader in clean energy with almost 100% of the electricity consumed in this small country coming from renewable energy. The country relies on geothermal and hydro-power for its energy needs.
- Paraguay attains 100% of the electricity it uses from renewable sources. Its massive hydropower dams serve its electricity requirements and supply neighbors Argentina and Brazil.
- Costa Rica achieved 300 consecutive days of 100% renewable electricity in 2018 from sources like hydro, geothermal, biomass, wind, and solar.
- Ethiopia, Kenya, Namibia, Norway, Tajikistan, and Uruguay generate over 90% of electricity from renewables, with goals to fully transition.