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How Electricity is Generated and Distributed

How Electricity is Generated and Distributed with Power Compare
Thursday, August 22, 2024

In New Zealand, we generate our electricity from a range of sources. These include both renewable and non-renewable sources. Our range of energy sources ensure that there is enough electricity generated at all times for all Kiwis to have access to, whenever they need. 

How is Electricity Generated in NZ? 

Solar 

Some of our energy is generated with solar panels. Solar panels use a process called photovoltaic which converts the sun’s light into electricity. This is a renewable source of energy because the sun’s energy is constantly being replenished and can be harvested even on cloudy days. 

Wind

As a windy country, we can harness the power of this weather to generate electricity. When wind passes through wind turbines, the blades spin, turning the rotor inside, which generates kinetic energy that we can convert into electricity. Wind power is another clean, green and renewable energy source. 

Hydro Power

We can harness the power of moving water to generate electricity. Water in reservoirs flows downstream and pours over a dam, falling through and pushing turbines. As these turbine blades spin, they generate kinetic energy that we convert into electricity.

Geothermal 

Beneath the Earth’s crust is an incredible source of heat energy – geothermal energy. As a country on tectonic plates, we get to enjoy geothermal hot springs, mud pools, and geysers. We can harness the energy of this rising heat and pipe it through turbines, again, creating electricity by converting the kinetic energy of the spinning blades into electricity. 

Fossil Fuels

Lastly, we get a portion of our electricity from fossil fuels. This works by burning fossil fuels, such as coal, oil and natural gas, to generate electricity. Fossil fuels are considered an unreplenishable source of energy because fossil fuels are made up of the decomposition of dead plants and animals over millions of years. Therefore, the fossil fuels on the Earth now will not be replenished for a very, very long time. When burned, fossil fuels generate carbon dioxide, which is harmful to the environment. Therefore, we are trying to use less fossil fuels to generate electricity. 

How is Electricity Distributed in NZ?  

The New Zealand national electricity transmission system is owned and operated by a state-owned enterprise called Transpower. This extensive and robust system is made up of substations, high voltage cables, transformers and overhead lines that transmit the high voltage electricity from power stations to distribution companies. Transpower even directly supplies electricity to some large companies. 

The distribution companies, or line companies, are responsible for maintaining local power lines. These carry electricity via power poles and lines to Kiwi homes and businesses. Line companies are also responsible for ensuring that homes and businesses receive the right amount of power and at a particular quality and reliability. Line companies are typically owned by local trusts and councils. 

Now that you know how power gets to your home, how about you unlock savings on your power bill?

Compare Power to Save Money

One of the most effective ways to save money on your power bill is to compare. Here at Power Compare, we are all about helping Kiwis make better decisions with their hard earned money. Our user-friendly comparison platform makes it easy to compare power plans and providers available to you, so you can discover a better plan, and ultimately discover savings. Why pay more, when you can find a better deal and save money?

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Further Reading: 

8 Ways to Lower your Power Bill

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