Pacifecon research manager Philip Dawes explores New Zealand’s energy sector and sustainable construction.
Pacifecon’s February Market Watch explored New Zealand’s energy sector and sustainable construction. We split the energy sector into energy production (renewable and fossil), storage, distribution and maintenance.
At present, we’re reporting on 320 energy projects in early planning and tendering stages across the country at a combined value of nearly $50 billion.
By the end of February we could see that 52% of the projects in the Pacifecon energy pipeline were electricity projects, but they only carry 16% of the value.
They number highly in most regions, with Otago, Wellington and Waikato having the highest number of electricity projects in the pipeline.
Diving deeper into the numbers, we’re reporting that solar projects make up 27% of the number and 19% value.
Gas and wind are sitting at 8% of the number but, interestingly, gas projects are worth only 1% of the value of all energy projects — whereas wind projects are valued at 50%.
Examples of some of the high-value energy projects in the planning and tendering stages include:
• A $6 billion offshore wind farm in Southland in the early planning — although there are some concerns around the allocation of seabed space (Pacifecon reference number AP2834).
• An $800 million solar farm with approximately 660,000 solar panels (Pacifecon reference number AT4506).
As far as bigger projects go, one that we’ve been reporting on since 2021 is the Kowhai Renewable Energy Park.
Having moved to the construction phase in August 2024, we estimate the Christchurch project at $300 million. It comprises several components, including (PV) Photovoltaic panels and support structures.
There’s also a 66kV substation located on CIAL land at Grays Road to facilitate connection to the Orion New Zealand electricity distribution network, and a second substation located at Pound Road.
In addition to a highlighted project breakdown, each Market Watch includes commentary and graphs for each region.
It provides a comprehensive picture of planned construction across the country to help your business with forecasting, and informing strategic decisions.
Our recent March Market Watch takes a deep dive into subdivisions. A wee snippet of what’s included is that 75% of the civil subdivision projects in the pipeline are in the North Island, with Auckland and the Waikato/Bay of Plenty area being strong in this space.
Canterbury had 11% of all civil subdivision projects. Get in touch with the team if you’d like to learn more about this.
• Market Watch is produced monthly, and is a joint effort by our 30-strong local researchers. It provides analysis focusing on newly-reported projects, progression of existing projects, and construction commencements and cancellations across key sectors, including commercial, residential and infrastructure for New Zealand and the Pacific Islands.
I am responsible for managing and leading the nationwide research and edit team to ensure all information released is accurate and of a high quality.
I’m across what’s happening in the local construction industry, and I oversee each report with a keen interest in the Market Watch.
Be informed, make strategic decisions based on projects planned and what has started, drive business growth, understand which regions are right for your future, and identify which sectors are growing in the regions.
Head to pacifecon.co.nz/resources/market-watch to download sample reports. or contact us today to order your copy of Market Watch at [email protected].
