We live in topsy turvy times where political lines on climate and capital are increasingly blurred. When I was a kid I was taught that the difference between the political right and the political left was their beliefs about money. The right would do what they could to support its concentration and the left would do what they could to share it. The right, therefore, would lead governments that were liked and trusted by capital and businesses, big and small.
You don’t get business much bigger than BlackRock. They operate across the whole world, managing investments of an unbelievably large sum: $14 trillion as of the end of 2025. Clearly, whatever you think of BlackRock, it is important.
Chris Hipkins thought so too, since as Prime Minister, he signed a deal with them in August of 2023. The $2 billion fund was to drive investment in New Zealand’s renewable energy infrastructure: wind and solar power generation, battery storage projects, electric car charging, and that sort of thing. Labour touted the money as helping New Zealand have a more resilient and affordable energy system, while the company said the fund could be a model for the world to follow as we struggle to find ways forward in an ‘orderly, just and fair energy transition’.
Now, that deal has quietly died. The reasons for BlackRock pulling itself out are not totally clear or simple. Probably politics in the United States are part of it. Probably the messy liquidation of SolarZero, a company it had funded, didn’t help. But it is also due to the current government giving out the sense that it has neither commitment to climate action nor a clue how to go forward. Not an attractive destination for your money.
Two billion dollars is a lot of money, probably enough to buy a block of cheese, certainly enough to have made huge strides towards a more resilient, more renewable energy grid. You would be welcome to be sceptical about how the money might have been used, or how much of it would have eventually gone off-shore. But now we have lost those opportunities.
While we’ve been waiting for overseas billionaires to save us, New Zealand’s own energy companies, the “gentailers” are effectively asset-stripping our national grid.
Our latest “Generating Scarcity” report, co-published with the New Zealand Council of Trade Unions, Workers First Union and 350 Aotearoa reveals a disturbing trend:
- Excessive Payouts: Over the decade to 2023, the big four gentailers (Meridian, Mercury, Genesis, and Contact) paid out 10.8 billion in dividends while investing only 4.5 billion in infrastructure.
- Profit Over People: For every dollar spent on new renewable plants, $2.41 was paid to shareholders.
- Energy Hardship: While these companies earned record profits, 110,000 households could not afford to keep their homes warm in 2022, and an estimated 40,000 households went without power because they couldn’t pay.
Instead of begging for private investment that prioritises short-term profit, we should be looking at the $4.2 billion in excess dividends distributed since 2014—money that could have been reinvested to lower power bills and build a resilient grid.
As we look toward the 2026 election, the policy vacuum is growing. The government’s 100-day plan committed to “beginning efforts” to double renewable energy, but this lacks a concrete timeline or a workable strategy.
Without a plan, we are left with a system where imported gas is becoming a first choice rather than a last resort, and our once-groundbreaking climate laws have become “a shell”. The 2026 election must be a turning point where New Zealanders demand an energy system that serves the public good, not just corporate dividends.
Rather than leveraging our infrastructure to overseas corporations, the government should:
- Tax Windfall Profits: Levy a tax on gentailers to fund home insulation and community energy.
- Support Local Ownership: Invest in Māori-led and community-owned energy projects that keep benefits within local regions.
- Publicly Fund Infrastructure: Resourcing the grid directly ensures it remains a public necessity, not a corporate asset.
We cannot wait for the next topsy-turvy political shift or another failed deal with an overseas billionaire. We need a sustainable, reliable, and affordable energy system that puts people and the planet first.
If you agree that Aotearoa deserves a real energy plan, sign our petition to demand a 30-year Energy Strategy.
Vicki is a volunteer with 350 Aotearoa. She lives in Ōtepoti Dunedin with her family, and works at the University of Otago. She is currently writing a book about how identity and belonging have been explained by social scientists.