New Zealand is the only non-European country to rank inside the top 10 on the most recent annual world energy performance index.
Parliamentarians from across the political divide are welcoming the placing, with Energy Minister Megan Woods saying the ranking is a "strong endorsement of New Zealand's energy system and the approach our country is taking."
According to the World Energy Council's Energy Trilemma index, New Zealand energy performance is the best in the Asia-Pacific region.
New Zealand came in eighth, up one place on last year, between Norway (9th) and Germany (7th).
The Index ranks 130 countries on how well they are achieving a balance between energy security, energy equity and environmental sustainability.
Denmark topped the list – the West-African nation of Niger was at the bottom.
The report said New Zealand is well known for its Government's policies on renewables, with New Zealand aiming to achieve 100 per cent renewable electricity by 2035.
Although New Zealand's overall rank increased, its rank for sustainability and equity has dropped due to the relative improved performance of other countries.
New Zealand's top 10 ranking has been welcomed by MPs, with National's Energy Spokesman Jonathan Young saying it's a pleasing result.
"However, with demand expected to increase substantially, the current Government's goal of 100 per cent renewable electricity generation by 2035 means we will have to carefully manage the risk to our energy security with such reliance on intermittent energy sources."
He said the overbuild of renewable generation assets, to compensate for intermittency, has to potential to drive up costs.
The Greens Energy Spokesman Gareth Hughes said while the top 10 placing is "a bit of a 'pat on the back' for the sector," most consumers will care more about their rising power bills than rising rankings on the World Energy Council Trilemma.
"Our sustainability rank dropped because other countries have seen more rapid improvement and it is important New Zealand doesn't rest on its renewable electricity laurels and continues to push for cleaner energy and greater energy efficiency."
Woods said the Government is working to ensure New Zealand's energy system is affordable, secure and sustainable.
BusinessNZ Energy Council Chairman David Caygill said New Zealand is among the world leaders in energy digitalisation and should leverage this advantage as the country faces the challenge of meeting the nation's Paris climate change commitments.
"It is encouraging to see New Zealand policy and business leaders using this tool to better manage the energy sector's complexity. For example, just recently the Trilemma has been used to shape the electricity price review."