Gas infrastructure futures in a net zero New Zealand

Gas network companies First Gas and Powerco commissioned Vivid Economics to investigate the role of natural gas and gas pipeline infrastructure in meeting a net zero climate target in New Zealand. The analysis involved three main components. First, we developed a model of the New Zealand energy system, with a detailed representation of New Zealand’s energy demand, fuels and energy technologies. Second, we analysed the costs of different clean energy solutions in New Zealand. Third, we developed three energy transition scenarios than span the range of futures for gas and its infrastructure: offsetting emissions from natural gas with forestry; shifting from natural gas to renewables and electricity in all end use sectors, and shifting from natural gas to hydrogen. Using our energy model and cost analysis we then estimated how the relative costs of these scenarios could vary under different future conditions.

Date: September 2019


First Gas, Powerco




Market Design & Economic Regulation
Net Zero Transitions
Technology & Innovation


East Asia & Pacific