The New Zealand government has set a target of 90 percent of electricity generation from renewable sources by 2025, and has imposed a 10-year ban on new non-renewable power stations, in a bid to reduce carbon emissions.

However, poor rainfall has seen hydro lakes fall to just above half of their average storage levels, leading to a jump in electricity generation from gas, coal and oil.

Hydro accounted for 52 percent of generation in the March quarter, down from 61.1 percent in the same period last year.

Gas generation was 24.7 percent, up from 20 percent, while coal generation increased to 10.1 percent from 7.4 percent.

Total electricity generation rose 3 percent to 10,130 Gigawatt hours (GWh).

The state-owned Whirinaki diesel-powered station, a designated back-up emergency station, generated 26 GWH in the quarter, after not being used in the three months to March 2007.

The depleted hydro lakes have seen businesses cut production to save power and a conservation campaign aimed at domestic consumers.

The country's single largest power consumer, Rio Tinto's aluminium smelter at Tiwai Point, has cut output by 10 percent.

Contact Energy has recommissioned part of its gas-fired New Plymouth power station, which was mothballed last year after the discovery of asbestos, to meet demand.

The MED report also showed that the higher level of thermal generation saw the country's emissions from electricity increase by about a third in the quarter to 1,845 kilotons of carbon.

The government has said it is working on contingency measures if the hydro lakes do not receive enough rain, without detailing specific measures. (Reporting by Adrian Bathgate)