South Island
Energy

The South Island is a major centre for electricity generation, especially in the southern half of the island, and especially from hydroelectricity. In 2010, the island generated 18.01 TWh of electricity, 41.5% of New Zealand's total electricity generation. Nearly all (98.7%) of the island's electricity is generated by hydroelectricity, primarily from the Waitaki, Clutha, and Manapouri schemes, with most of the remainder coming from wind generation. While the majority of electricity is consumed within the island, a significant percentage is exported to the North Island via the HVDC Inter-Island link.

Offshore oil and gas is likely to become an increasingly important part of the South Island economy into the future. Origin Energy has formed a joint venture with Anadarko Petroleum, the second-largest independent U.S. natural gas producer, to begin drilling for oil in the Canterbury Basin off the coast of Dunedin. The 390 km, Carrack/Caravel prospect has the potential to deliver more than the equivalent of 500,000,000 barrels (79,000,000 m) of oil and gas. Market analyst, Greg Easton from Craigs Investment Partners commented that such a substantial find it could well turn Dunedin from the Edinburgh of the south to the Aberdeen of the south.

The Great South Basin off the coast of Otago and Southland at over 500,000 square kilometres (190,000 sq mi) (covering an area 1.5 times New Zealand's landmass) is one of New Zealand's largest undeveloped offshore petroleum basins with prospects for both oil and gas. In July 2007, the New Zealand Government awarded oil and gas exploration permits for four areas of the Great South Basin, situated in the volatile waters off the Southern Coast of New Zealand. The three successful permit holders are:
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