Offshore windfarms generate more power than on land – Image: Pete Godfrey/Unsplash
By Lawrence Meredith, EU Ambassador to New Zealand
This month’s first high-level European Union New Zealand Business Summit couldn’t be more timely. The event in Auckland will build on the momentum of the EU–NZ Free Trade Agreement and New Zealand’s burgeoning partnership with Horizon Europe, the world’s largest public programme for research and innovation.
Together, we’ll be seeking to unlock opportunities in trade, investment, and innovation — from green infrastructure and digital tech to sustainable growth and supply chain resilience.
One of my favourite mantras is “stronger together”. It references collaboration among the European Union’s 27 Member States – and equally it applies to the way in which the European Union seeks to work with like-minded partners, including New Zealand.
The Free Trade Agreement came into force 18 months ago, removing import duties on more than 90% of Kiwi exports. Exports to the European Union have since risen by $1 billion or 28%. While much of the focus has been on agriculture – understandably so given New Zealand’s strength in this sector – the deal has also enhanced the opportunities for European investment in other New Zealand initiatives, including by doubling the investment ceiling for New Zealand.
Horizon Europe aims to allocate almost 100 billion euros by 2027, which so far includes funding for about 20 projects from New Zealand – its first global partner outside the immediate neighbourhood of Europe. On average 1 in 10 project proposals are accepted, but New Zealand has a 1 in five success rate, which speaks to this country’s impressive levels of innovation and creativity, and the two partners’ synergies across multiple sectors.
Image: Lawrence Meredith, EU Ambassador to New Zealand in Wellington
Renewable energy is one of the key areas for potential investment in New Zealand, with European partners keen to share their expertise.
This stems naturally from the European Union’s focus on greater use of renewables and energy efficiency to help meet its Paris Climate Accord target of net-zero carbon emissions by 2050. Measures include cutting base emissions from the most energy-intensive industries and encouraging innovation, and a commitment to doubling the share of renewables in energy use by 2030 from their current level of just under 25%.
The war in Ukraine has accelerated this push, with a drastic reduction of Europe’s former dependence on Russian gas. Europe will eliminate importing of all Russian fossil fuels by 2027.
Wind is a core part of the European Union’s renewables strategy, supported by the comprehensive packages provided by Member States and the European Investment Bank to fund public/private sector infrastructure projects. On- and offshore wind provided about 20 percent of Europe’s electricity in 2024, according to WindEurope, an industry group, and almost 40 percent of the electricity generated in the EU from renewable sources.
Those figures are expected to rise dramatically in the years ahead. Offshore wind, for example, is a proven, scalable technology that can diversify energy mix, boost resilience, and advance environmental goals. Thirty-four years after the world’s first offshore wind farm was installed in Denmark in 1991, the European Union remains a global leader in offshore wind technology.
Offshore wind companies from Europe are also interested in investing in New Zealand and forming partnerships with local energy companies. With an extensive coastline and location in the Roaring Forties, there is huge untapped potential here for offshore wind farms, which can generate more electricity than their land-based counterparts.
As others have noted, New Zealand faces an energy crunch with the rapid decline in gas available for electricity generation creating medium-term supply pressure. Demand is set to grow significantly driven by the electrification of industry and transport, along with AI, data centres and population growth.
While no offshore wind development has yet taken place, European investors are taking a close look, with exploratory work underway.
The European Union is keen to share with New Zealand its proven experience in offshore wind. We have complementary strengths to lever for our mutual advantage in offshore wind, infrastructure, aerospace and defence, all of which will be discussed at this month’s summit. In a world of increasing uncertainties, the European Union stands out as a secure, trusted partner for New Zealand businesses, innovators and visionaries. (NAN/OP-Ed 01-10-25)
