Increasing New Zealand’s energy supply through government energy demand
The Minister for Energy today announced MBIE is working with the three largest electricity consuming central government agencies (New Zealand Defence Force, Health NZ and Department of Corrections) on pursuing potential Power Purchase Agreements (PPAs).
The Government’s energy package includes an action to leverage government energy demand to support new generation, and innovation and competition in the energy market.
A Request for Information (RFI) in late 2025 sought information on how the government’s purchasing power could support new energy investment. Feedback from the RFI confirmed the expectation that long-term agreements, such as Power Purchase Agreements (PPAs) could support accelerating new energy generation.
Leveraging Government Energy Demand – GETS.govt.nz
“We’re working Health New Zealand, New Zealand Defence Force, and the Department of Corrections, to unlock this opportunity with potential PPAs to take effect at the end of their existing All-of-Government (AoG) contracts. Collectively, these three agencies account for around 37 percent of electricity currently purchased through the AoG Electricity panel. Any eventual PPAs would cover only a proportion of each agency’s electricity needs, not all of it. “ says Michael Alp, General Manager, New Zealand Government Procurement (NZGP).
"Although these agencies’ existing AoG contracts don’t expire for a few years, we need to move quickly to secure contracts that enable sufficient time for the new generation to be built. We believe there are real opportunities here, across technologies, locations, size, and contract types.” says Michael.
NZGP is hosting a market information event for potential suppliers in late March, to provide further information about these agencies’ energy needs and expected procurement activities over the next few months.
The existing AoG Electricity panel is not impacted by this project. Other eligible agencies who will continue to purchase their electricity through it.
For more information, email:
energyprocurement@mbie.govt.nz
Minister Watts' statement: