Geothermal Energy in New Zealand

Submission on the Kawerau Geothermal Power Station Energy Development

[ Last Updated 20 January 2006 ]

New Zealand's geothermal resource base is large, and is currently the second largest renewable energy source contributing to the national energy supply. About 6% of total electricity generation and 34% of primary renewable energy supply is associated with geothermal energy.¹

In 2005 the Ministry commissioned a study, Availability and Costs of Renewable Sources of Energy for Generating Electricity and Heat, which identifies that geothermal energy has the potential to contribute significantly to meeting New Zealand's energy needs. Kawerau is specifically identified as an area with potential for geothermal development. The table below shows the large potential of geothermal for supply of renewable energy, compared with hydro and wind, at less than 16 cents per kilowatt-hour (c/kWh) for electricity and less than $25 per gigajoule for heat.

Potential Resource Available (usable energy at source) at less than 16c/kWh (Electricity)/$25/GJ (Heat), (PJ/y)
Resource	2015			2025
Resource	High Confidence	Medium Confidence	Low Confidence	High Confidence	Medium Confidence	Low Confidence
Geothermal	64	82	325	81	101	325
Hydro	18	32	56	18	32	56
Wind	24	45	61	26	48	65

NB. High confidence resources are those that are well proven and readily able to be permitted and developed. Achievable development rate has been taken into account. High confidence resources represent an 80-90% confidence that the uptake will occur. Medium confidence estimates represent a median estimate of uptake. Generally these are associated with a more liberal consenting environment. Low confidence estimates represent resources that can be developed but difficulties are expected in terms of permitting and access. They represent a 10-20% confidence that the uptake will occur. Confidence levels are cumulative e.g. the medium confidence resource available will include both the high and medium confidence bands.

Geothermal energy is an environmentally responsible alternative to energy derived from fossil fuels because it is a low carbon emitting source relative to fossil fuel sources. Carbon dioxide emissions could be significantly reduced if the potential of geothermal energy was fully exploited. By contributing to the reduction of greenhouse gases, the Kawerau Geothermal Power Station would assist New Zealand in meeting its commitments under the Kyoto Protocol.

¹East Harbour Management Services, Availabilities and Costs of Renewable Sources of Energy for Generating Electricity and Heat, June 2005