Did you know that most of New Zealand’s energy is supplied by fossil fuels?
That’s a fact that we aren’t used to hearing. This week we highlight SDG #7 Affordable and Clean Energy which has a much greater importance for New Zealand than we may have given credit. While 80-85% of electricity generation is from renewable sources, New Zealand’s industrial and transport energy still has a long way to go to being clean. New Zealand’s electricity demand is expected to grow by 68% by 2050, driven by the electrification of vehicles, machinery and homes.
This week we break down what SDG #7 means and what New Zealand’s energy system looks like. We then look to highlight how this goal is relevant for farmers. Farms are uniquely positioned with access to space and resources, and can play a critical role in meeting future energy demand while creating financial and operational benefits for themselves. How can you do that? We end with highlighting the services of Solayer and how you can get support to further explore what a solar system could look like on your farm.
What's SDG #7 about?
SDG #6 seeks to ensure access to affordable, reliable, sustainable and modern energy for all.
Targets under this goal are focused on:
- Ensuring universal access to affordable, reliable and modern energy services
- Substantially increase the proportion of renewable energy in the global total energy consumption
- Double the global rate of improvement in energy efficiency
- Enhance international cooperation to facilitate access to clean energy research and technology
- Promote investment in energy infrastructure and clean energy technology
- Expand infrastructure and upgrade technology for supplying modern and sustainable energy services for all in developing countries
SDG #7 and its targets really give a focus to ensuring the resiliency of our energy systems into the future. Whether it be about access, affordability, renewable sources, efficiency or investment, these focus points are all central to creating this resilience. We think about sustainability as being able to maintain something into the future, however, sustainability is nothing without resilience. We aren’t immune to challenges and having to deal with shocks that are big or small, therefore it is fundamental that our efforts for sustainability are not just focused on maintaining something into the future under perfect conditions, but ensuring that maintenance can occur irrespective of the road bumps that come our way. For energy systems, sustainability and resilience will need to look like being able to service demand for energy in a clean and affordable way irrespective of whether that is during a great season where our hydro lakes are full or during really dry periods where the resource to generate electricity is limited.
New Zealand's Energy System
When we think of New Zealand’s energy system we automatically think about our renewable energy sources, right? This is true for electricity generation however 99% of our transport energy is supplied by fossil fuels and approximately 60% for industrial energy. While our electricity generation is mostly really clean (ignoring the times this summer been where we have had to increase coal generated energy production and when we started burning straight diesel/oil for energy production in the Hawke’s Bay), the magnitude of the reliance on fossil fuels for transport and industry paints a picture of New Zealand’s energy system that is not “clean and green”, or not yet anyway.
The image to the right shows the consumption of primary energy in New Zealand in 2021. Primary energy refers to energy that is harvested directly from natural resources. The green shows renewable energy sources and red shows non-renewable.
In 2021, oil, fossil gas and coal accounted for a whopping 70% of primary energy consumption. In contrast, hydro, wind, geothermal and wind accounted for only 30% of primary energy consumption. It is also interesting that to note that solar accounted for less than 1% of primary energy consumption.
Having an energy system that is largely reliant on fossil fuels not only impacts on the sustainability of sourcing the resources we need to provide energy, but also has negative impacts on the environment through the emissions created from energy production and consumption. Energy-related greenhouse gas emissions are the second largest component of New Zealand’s emissions profile, making up 36.6%. Of this, light vehicles, other transport, industrial and households make up 32.2%.
Why is SDG #7 important for agriculture?
While the direct on-farm energy-related emissions of agriculture, forestry and fishing may only account for 1.9% of New Zealand’s total greenhouse gas emissions, our impact on energy-related emissions is much greater than that. We are heavily connected to other parts of the energy system including industrial, transport, light vehicles, commercial and household. A clean and affordable energy system in New Zealand is therefore not only important for us to produce our product, but for all the other processes associated with primary production, which our livelihoods are dependent on.
New Zealand’s farms have the potential to play an important role in the future of achieving progress towards SDG #7. Rewiring Aotearoa released a report in May 2024 titled ‘Electric Farms – The role of farms as future power stations’ which highlighted the case for the role of agriculture in New Zealand’s transition to a cleaner, more resilient energy system. A key focus of this report was emphasising that the role of farms in a re-imagined energy system will also provide a range of economic benefits to farming businesses.
New Zealand farmers are uniquely placed to lead in the generation of clean energy, with their large land areas, ample sunlight, and direct access to medium-voltage networks. By installing solar panels on unused land, shed roofs, or irrigation dams, farms can generate and store clean energy to power their operations and sell surplus back to the grid.
But we’re not just talking large scale solar farms, if each of New Zealand’s 50,000 farms installed mid-scale solar systems (e.g., 500kW), they could collectively produce 63–75% of the country’s total electricity needs, and with 300kWh of batteries per farm, provide an additional 9,000GWh of storage to the grid. This shift would ease pressure on large-scale infrastructure, reduce reliance on fossil fuels, and bring significant environmental and economic benefits as well as energy resilience to rural communities.
The numbers are staggering: solar panels delivers energy at 6.2c/kWh, compared to 33.9c/kWh for grid electricity and a whopping 75.7c/kWh for diesel generators. For farmers, this isn’t just an opportunity—it’s a financial imperative that directly impacts the bottom line.
What are some of the benefits that on-farm energy generation and electrification offers farmers?
- Reduced operating costs by saving money on diesel fuel
- Increase self-sufficiency and energy security
- Diversify income by selling surplus energy back to the national grid
- Enhance resilience by reducing vulnerability to disruptions in the national energy grid
- Future-proof your farming business: As global and local markets increasingly value sustainability, early adoption of clean energy boosts competitiveness and adds value to agricultural products.
- Electrification of parts of your farming business immediately reduces your emissions due to not burning diesel
If reading a report isn’t your thing, Mike Casey of Rewiring Aotearoa and Forest Lodge Orchard gave a great talk at E Tipu Boma Agri Summit this year which highlighted they key parts of the report and how the 50,000 farms in Aotearoa, New Zealand could look to transform our energy system, as well as their business’ bottom lines.
For more on Rewiring Aotearoa and their work, head to https://www.rewiring.nz/
Solayer - Integrated Agricultural Energy Solutions
How can you be supported in exploring how renewable electricity generation could be integrated into your farming business?
At The Whole Story, we understand that farmers want practical, tailored solutions to integrate renewable energy into their businesses. That’s why we’ve created Solayer, a team of farmers and energy experts dedicated to making integrated clean energy solutions a reality for New Zealand farmers.
Here’s how Solayer works:
- Collaborative project management: Solayer helps farmers design and manage renewable energy projects, working alongside them from start to finish.
- Customised solutions: Our team optimises systems based on each farm’s location, infrastructure, and goals, ensuring seamless integration into the business.
- Turnkey installation: From planning to installation, Solayer supports farmers every step of the way, ensuring projects are delivered on time and to the highest standards.
One of the key considerations for Solayer is looking at impact on farm cashflow and our team design solutions that are cashflow positive from day one and frequently the systems show a payback period of less than 5 years. Whether you’re looking to install solar panels, integrate wind turbines, install small-scale hydroelectrical generation or electrify machinery, Solayer was set up to turn energy ideas into reality on farms. With the right mix of expertise, local knowledge, and innovative technology, we’ll work with you to create a system that powers your farm sustainably – and profitably.
To learn more about how Solayer can help you to take a step towards scoping and integrating renewable energy solutions on your farm, get in touch with the Solayer team at info@solayer.co.nz or head to www.solayer.co.nz
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