• Independent study commissioned by ABB reveals that 77% of New Zealand business leaders in key industries are allocating over 10% of their capital expenditure to energy transition initiatives over the next five years.
• Technological advancement identified as a top driver of the energy transition, with 67% citing it as having the greatest potential to accelerate progress.
• 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 decarbonisation.

The ABB Asia Pacific Energy Transition Readiness Index 2025 in collaboration with Sandpiper Research and Insights has surveyed close to 4,100 business, IT, and sustainability leaders responsible for technology, electrification and automation strategies across 12 markets in Asia Pacific – Australia, Mainland China, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.

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

A key finding was that Kiwi companies are investing heavily in clean energy, automation and digitalisation. Anders Maltesen, President of ABB Energy Industries Asia, says, “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. 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 ageing infrastructure.”

Business is increasing green investment, and geopolitics is an opportunity to lead 

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 is particularly strong in the following industries – water & waste solutions (98%), energy & power generation (86%), and data centres and IT & technology (both 78%).

At the macro level, 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% say that changes in global geopolitics are not impacting their organisation’s plans.

Automation and innovation accelerate the path to decarbonisation  

The survey also highlights 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.

However, challenges remain. Nearly half of organisations (49%) report being under-resourced to support their energy transition strategies, and 59% face difficulties recruiting skilled green talent. Barriers 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%). Mr Maltesen highlights 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.”

A standout example of ABB powering geothermal innovation in New Zealand is its delivery of a fully integrated solution for the Te Mihi Stage 2A geothermal power plant, a cornerstone of Contact Energy’s renewable energy investment strategy. In a move that showcases the power of automation in renewable energy, ABB is taking on the critical Governor Control system – a role traditionally handled by turbine OEMs. This approach enables real-time monitoring, predictive maintenance, and minimised downtime, which is especially vital in New Zealand’s seismically active environment.

Collaboration is the cornerstone of the energy transition 

The energy transition demands cross-sector collaboration. The research found strong support for public-private partnerships, government incentives, and cross-regional grid collaboration. Notably, 92% of New Zealand respondents believe business leaders could be doing more to accelerate efforts.

New Zealand has the opportunity to become a global model for sustainable living. By investing in smart infrastructure, embracing digital innovation, and building a net-zero workforce, it can secure an energy future and lead the world in climate action.

 ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalization expertise, ABB helps industries run at high performance, while becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB). www.abb.com

ABB’s Process Automation business automates, electrifies and digitalises industrial operations that address a wide range of essential needs – from supplying energy, water and materials, to producing goods and transporting them to market. With its ~20,000 employees, leading technology and service expertise, ABB Process Automation helps process, hybrid and maritime industries outrun – leaner and cleaner. go.abb/processautomation