New Zealand firms seek energy certainty to boost investment

New Zealand businesses would invest more if domestic energy costs and supply were more stable and predictable, according to research commissioned by Schneider Electric. The survey found 71 per cent of business leaders believe a faster energy transition would strengthen the country's competitiveness.

The findings suggest energy uncertainty is delaying spending plans. Nearly two in five businesses, or 39 per cent, said they had postponed investment in expansion or new projects because of domestic energy cost or supply pressures. Another 48 per cent said ongoing energy challenges would undermine their long-term profitability.

That caution comes even as many companies prepare for higher electricity use. The report found 44 per cent of New Zealand businesses already invest, or plan to invest in infrastructure upgrades in 2026, to manage future electricity demand.

Survey responses suggest businesses are focusing first on measures within their control. Energy efficiency was an active priority for 46 per cent of respondents, followed by workflow automation at 45 per cent and AI-driven operational efficiencies at 42 per cent.

At the same time, many said they were moving too slowly on newer energy systems. More than a third, or 34 per cent, said they were not investing quickly enough in new energy technology, while 40 per cent said regulatory uncertainty was holding them back.

Investment pressure

The research suggests greater energy certainty would change where companies direct their spending. If domestic energy costs and supply became more predictable, businesses said they would increase investment in workforce capability, product and customer growth, and onsite energy generation and storage.

Upfront cost remains the most commonly cited obstacle. Just over half of respondents, or 51 per cent, said capital costs were the main barrier to adopting advanced energy or infrastructure technologies such as smart grids, battery storage and fleet electrification.

Government support also featured strongly. More than half of those surveyed, or 58 per cent, ranked government subsidies among the top two measures that would help accelerate their energy transition strategy.

The study was based on a survey of 288 senior decision-makers across sectors including manufacturing, construction, technology, retail, healthcare and professional services. It covered organisations ranging from small and medium-sized businesses to large national companies.

Business outlook

Oliver Hill, Country President, Schneider Electric New Zealand, said the results showed businesses wanted to invest but were being held back by uncertainty in the domestic energy market.

"Our research found many business leaders want to keep moving forward, but uncertain domestic energy costs and supply create hesitation at the exact moment New Zealand needs investment. It becomes tougher to back new projects, build capability and invest for the long term.

"Greater stability in the country's domestic energy outlook would not just help businesses manage risk and build resilience, it would give them more confidence to invest in growth and technology, using available energy more efficiently," Hill said.

The survey presents the energy transition as a commercial issue as much as an environmental one. More than two-thirds of respondents said faster progress on emissions reduction and the wider transition would give their organisation a long-term competitive advantage.

That view comes as firms weigh rising electricity demand against the pace of new supply and infrastructure development. Businesses appear to be balancing near-term efforts such as efficiency measures and operational changes with longer-term plans including electrification and onsite energy systems.

Hill said private investment in domestic electricity generation was encouraging, but businesses still needed tools to respond before new supply was fully available.

"It is positive to see private investment in new domestic energy generation happening, and the Government providing supportive settings to encourage further investment. However, it will take time before this investment delivers the new generation needed to underpin New Zealand's resilience, productivity, and long-term competitiveness.

"There's a real opportunity right now to help organisations reduce pressure by cutting costs and making better, smarter use of the energy we already have. Strong energy management, efficiency and demand-side solutions can move the dial faster than new generation alone. And if we strike the right balance between using energy better and investing in more supply, the benefits will extend well beyond the energy system," Hill said.