Fuel price blowouts push NZ towards electrification – advocate

Rewiring Aotearoa CEO Mike Casey speaks to Q+A's Jack Tame. (Source: Q and A)

The conflict in Iran and resulting energy crisis marks a permanent shift for New Zealand’s reliance on imported fossil fuels, an electrification advocate says.

Kiwibank Sustainable Business Leader of the Year 2026 and chief executive of Rewiring Aotearoa Mike Casey tells Q+A New Zealanders’ interest in electric alternatives have soared in the past few weeks as the price of fuel continues to ratchet up.

Last week was the biggest week for electric vehicle sales since the week before the Clean Car Discount was scrapped in 2023.

Down on Casey’s fully-electric cherry orchard in Central Otago, his neighbour has been talking about borrowing his electric tractor if the diesel price continues to rise.

“I think more and more New Zealanders are starting to realise the future of everything is in New Zealand-made energy,” he said.

Casey said New Zealand is home to 10 million machines that are reliant on imported fossil fuels, and not all of them are ready to make the change to electricity.

“There’s about 800,000 machines that we simply cannot electrify. They’re going to require diesel for a much, much longer period of time.”

According to MBIE data, New Zealand’s diesel consumption was at an all-time high.

But Casey estimates 8.5 million machines – cars, trucks and industrial tools – could be electrified now, with today’s technology.

“The typical New Zealander drives 230 kilometres a week. That there is a real opportunity.”

While petrol prices nationally approach $4 a litre, he said it costs $1.15 per litre to charge an EV from solar, including the cost of road user charges.

One of the big issues stopping people from choosing EVs and solar panels is the upfront capital cost, Casey said. He believes the government should look at offering a long-term, low-interest finance scheme to get people on board.

“You will save so much money electrifying your home that the savings will pay for the capital repayments of that loan, the interest repayments of that loan, and still give the typical whanau in New Zealand $1000-2000 worth of additional savings a year.”

For the full interview, watch the video above

Q+A with Jack Tame is made with the support of New Zealand On Air

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