Fossil fuel consumption across New Zealand businesses reached its highest point in 2019 before beginning to decline, according to data from the Energy Efficiency and Conservation Authority.
The business sector's fossil fuel use has fallen to 51% in 2024, down 4 percentage points from the 2019 peak. EECA chief executive Marcos Pelenur said the shift was being driven by electrification in dairy manufacturing and meat processing, where coal consumption has fallen.
"Fossil fuel use appears to have peaked in 2019 and we're seeing a trend towards electrification - particularly in dairy manufacturing and meat processing," Pelenur said.
Despite the progress in business, transport accounts for 39% of New Zealand's energy consumption and remains around 96% fossil-fuel driven. Electric vehicles provide just 4% of road transport energy, with most coming from conventional hybrids that still use fossil fuels.
The EECA data also shows data centres, including AI-driven facilities, make up roughly 0.5% of New Zealand's electricity demand, with usage rising sharply from 2022 as very large facilities are developed. Pelenur said demand from data centres was expected to increase substantially over time.
Fossil fuels still represent about two-thirds of New Zealand's total energy consumption.