NZ industries lead Asia–Pacific's energy transition

The ABB Asia Pacific Energy Transition Readiness Index 2025 has shown that New Zealand companies are investing heavily in clean energy, automation and digitalisation.

The independent study, in collaboration with Sandpiper Research and Insights, surveyed close to 4100 business, IT and sustainability leaders responsible for technology, electrification and automation strategies across 12 markets in Asia–Pacific.

These markets included Australia, Mainland China, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.

The study’s respondents were drawn from industries including property and infrastructure, chemicals and refining, data centres, energy and power generation, industry and manufacturing, steelmaking, machinery and mining, pharmaceutical and life sciences, oil and gas, transportation, and water and waste solutions.

More than 200 respondents were surveyed from New Zealand and the findings show that 77% (73% regionally) are allocating over 10% of their capital expenditure to energy transition initiatives over the next five years. This investment surge was particularly strong in the following industries — water and waste solutions (98%), energy and power generation (86%), and data centres and IT & technology (both 78%).

“New Zealand’s high share of renewable electricity — around 85%, mainly from hydropower, geothermal and wind energy — gives it a strong foundation to lead the Asia–Pacific region in electrification and decarbonisation,” said Anders Maltesen, President of ABB Energy Industries Asia. “But to meet net-zero by 2050, electricity use must increase by over 60%, and that means there’s urgency to scaling smart technologies and modernising aging infrastructure.”

Overall, 78% of respondents believe the current changes in the global geopolitical landscape around climate change and energy transition presents an opportunity for APAC companies and business leaders to take more of a global leadership role in these areas.

As climate change is already an established issue, 66% said that changes in global geopolitics are not impacting their organisation’s plans.

The survey also highlighted technological advancement as a top driver of the energy transition, with 67% of executives citing it as having the greatest potential to accelerate progress.

Automation and digitalisation are seen as untapped opportunities by 42% of respondents, and AI is increasingly viewed as a transformative tool for optimising energy systems and reducing emissions.

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However, nearly half of organisations (49%) have reported being under-resourced to support their energy transition strategies, and 59% said that they face difficulties recruiting skilled green talent. Barriers stated include company reputation, lack of appeal to green talent, and a preference for retraining over hiring.

Currently, hydropower is a main source of renewable energy for 68% of respondents, followed by solar (65%), wind (64%), geothermal (47%), green hydrogen (44%) and biomass (35%).

Maltesen highlighted geothermal as a stable and valuable renewable energy source for New Zealand.

“Geothermal is a great opportunity for the country as it provides a stable power supply alongside wind and solar and is a key resource that can help balance the grid and provide consistent electricity generation,” Maltesen said.

An example of this is ABB’s delivery of a fully integrated solution for the Te Mihi Stage 2A geothermal power plant. ABB is taking on the Governor Control system — a role traditionally handled by turbine OEMs. This approach enables real-time monitoring, predictive maintenance and minimised downtime.

Overall, the research found strong support for public–private partnerships, government incentives and cross-regional grid collaboration. 92% of New Zealand respondents believe business leaders could be doing more to accelerate efforts.

Top image credit: iStock.com/nazar_ab