Dairying forcing up power demand; electricity growth


NFPA 70E Training - 2027 Edition - Arc Flash Safety Compliance

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 6 hours Instructor-led
  • Group Training Available
Regular Price:
$199
Coupon Price:
$149
Reserve Your Seat Today
New Zealand's seemingly inexhaustible appetite for electricity is being driven by the growth of dairy farming, particularly in the South Island.

The national demand for electricity is growing by between 2.5 and 3 per cent a year, the equivalent of about 300 megawatts (MW), or enough to power a city the size of Dunedin for about 18 months.

By 2030, New Zealanders are predicted to be using about 40% more electricity than the 36.9 million megawatt hours (MWh) they consumed in 2005.

However, estimates of demand in the dairying sector, including both dairy farms and processing operations, are outstripping that, with a 42% increase on the 807,375 MWh used just to make dairy products expected by 2025, and predictions of a more than a 50% rise in total demand by 2030.

Dairy giant Fonterra and its 13,000 shareholders alone buy 1.56 million MWh of electricity a year, equal to 5% of the national load, making Fonterra the country's second largest power user behind Comalco's Tiwai Point aluminium smelter. Of that total, 960,000 MWh is used by its processing plants and 600,000 MWh by dairy farms.

State-owned electricity generator and retailer Meridian Energy said the dairying boom was changing South Island electricity consumption patterns significantly. Spokesman Alan Seay said massive irrigators and equipment-intensive dairy farms were big users of electricity, as was dairy processing.

"Dairying is one of the main contributors to the fact that electricity demand for places like Otago and Southland has been growing faster than in Auckland.

"To a certain extent it is changing the traditional pattern of low summer (power) use in the South Island."

Cows are usually "dried off" during the autumn in preparation for calving in spring, with milk production peaking around the end of December or early in January.

Seay said the electricity requirements of the dairy industry were an important factor propelling Meridian's South Island development programme, including its proposed Project Hayes windfarm on the Lammermoor Range in Otago and the North Bank Tunnel project along the Waitaki River.

TrustPower spokesman Graeme Purches said irrigation had pushed up demand wherever it was used. "In places like Southland and Canterbury, and even on the West Coast, dairying has had a huge impact.

"But it's created employment and wealth - it's just natural growth. I don't think anyone would say let's give away dairying because it uses so much power. One of the biggest challenges faced by all the retailer-generators is trying to convince Mainlanders they don't generate power for the whole country any more."

Related News

Why Atomic Energy Is Heating Up Again

Nuclear Power Revival drives decarbonization, climate change mitigation, and energy security with SMRs, Generation IV…
View more

Microgrid experts urge utilities to use distributed resources beyond backup

Microgrid Operations are moving beyond emergency backup as utilities examine distributed energy resources for peak…
View more

Quebec Power Imports Signal Shift in Electricity Balance

Quebec is importing electricity from the United States as rising domestic demand and reduced hydropower…
View more

Opinion: UK Natural Gas, Rising Prices and Electricity

European Energy Market Crisis drives record natural gas and electricity prices across the EU, as…
View more

Tesla Electric is preparing to expand in the UK

Tesla Electric UK Expansion signals retail energy entry, leveraging Powerwall VPPs for grid services, dynamic…
View more

Cape Town to Build Own Power Plants, Buy Additional Electricity

Cape Town Renewable Energy Plan targets 450+ MW via solar, wind, and battery storage, cutting…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.