Infrastructure Sustainability Council welcomes Te Waihanga’s report on New Zealand’s energy infrastructure transition

Infrastructure Sustainability Council welcomes Te Waihanga’s report on New Zealand’s energy infrastructure transition

The Infrastructure Sustainability Council (ISC) has welcomed the release of ‘ Shifting Currents: Energy Infrastructure in Transition’, a new report from the New Zealand Infrastructure Commission, Te Waihanga, as an important contribution to the national conversation on how New Zealand’s energy system must evolve to support a low-carbon (net zero) future.

The report explores how New Zealand can balance three critical objectives as its energy infrastructure undergoes significant transformation: affordability, reliability and low emissions. Driven by electrification, the growth of renewable energy, and the decline of fossil fuels, it outlines practical steps toward net zero and the coordinated action required from governments, regulators, and industry to achieve it.

ISC Chief Executive Officer Toby Kent welcomed the report and highlighted its relevance for sustainable infrastructure and resilience.

‘Energy infrastructure is the foundation our communities are built on. When we plan and invest in it with sustainability and resilience in mind from the outset, we deliver stronger financial returns and build assets that perform over the long term.

‘At a time when New Zealand is making critical decisions about its energy future, this report underscores the importance of taking a long-term, integrated approach. By aligning policy, investment and industry action, New Zealand has a clear opportunity to build an energy system that is not only low emissions, but more affordable, resilient and fit for generations to come.’

The report identifies four key takeaways for New Zealand’s energy transition:

1. Building low-cost electricity infrastructure will keep prices low in the long term: Renewable energy is becoming more affordable to construct. Falling construction costs for wind and solar energy present a significant opportunity for New Zealand to invest now in efficient generation infrastructure that will lower wholesale electricity prices and reduce long-term system costs.
2. Policy certainty and coherence are critical in both the short and long term: Uncertain or inconsistent policy settings – particularly around gas and regulation – can delay investment. Clear, stable signals on climate targets and market rules reduce risk, encourage project development and ultimately put downward pressure on prices.
3. An adaptable and flexible system will help keep energy affordable and reliable: Expanding renewable energy requires complementary investments in system flexibility, including batteries, hydro storage and demand response, to maintain reliability and avoid unnecessary infrastructure costs.
4. Players in the energy system will need to adapt and coordinate: Stronger alignment between government, regulators and industry will help avoid duplication, reduce inefficiencies and ensure investments are targeted where they deliver the greatest value.

The report’s emphasis on policy coherence and system-wide coordination reinforces what is needed to unlock investment, reduce cost, and deliver reliable, future-ready energy infrastructure.

ISC-rated projects have been shown to reduce costs by around 10% of total CAPEX through improved energy and water efficiency, reduced material use, lower waste, and fewer emissions*. For project proponents, the report offers compelling evidence to support more sustainable investment decisions and to demonstrate value to clients, investors, and regulators. It also highlights how embedding resilience and sustainability from the earliest stages leads to stronger financial outcomes over the asset lifecycle.

‘Shifting Currents: Energy Infrastructure in Transition’ is available here

*ISC Impact Report (2025) available here

Media enquiries

Annie Manson Policy & Advocacy Manager Infrastructure Sustainability Council +61 422 131 741

annie.manson@iscouncil.org