The industry has undergone major changes over the last two years owing to legislation requiring restructuring of the electricity sector. 100,000 retail customers are considered necessary for what to be economically viable. A recent Government review has recommended further changes to the current re-structured sector. In the last few years there has been a significant increase in new generating capacity. This has been primarily combined cycle gas fired generation.
Gas remains the likely fuel of further new generation.
Many in the industry believe that NZ now has sufficient capacity without commissioning additional plants. However a recent newspaper article reports that three of the major generator companies are each looking to invest in gas-fired plants over the next five years. There continues to be interest in alternative renewable energy sources including wind turbines. The country is considered to be under-explored by international standards Rises in the price of oil have increased interest in exploration and development of New Zealand's reserves. The last two years have seen relatively high levels of activity, with Australian and North American exploration companies particularly active.