ocean energy

New Zealand gives preliminary approval to $1 billion geothermal project

Contact Energy Ltd., New Zealand’s largest publicly traded utility, has received preliminary approval for its proposed Tauhara II geothermal generation development on the nation’s central North Island. The $1 billion (€719.7 million) project would create New Zealand’s largest geothermal power station. A final decision is expected before the end of the year.

Gerry Brownlee, New Zealand’s Energy and Resources Minister, welcomed the decision by an Environmental Protection Authority board of inquiry, describing it as big step toward achieving the nation’s target of 90 per cent renewable energy by 2025.

"Not only will Tauhara II be an important economic development for the Taupo region, but geothermal energy is an important part of New Zealand's electricity generation mix – it provides year-round supply and is not subject to the vagaries of weather," Brownlee said.

“Geothermal electricity developments like Tauhara II are a good example of achieving both economic and environmental gains," he added.

The station, which is to be built on 5.5km of farmland northeast of Taupo, is expected to produce 250 MW of electricity, enough to meet the needs of about 270,000 homes, according to Contact Energy.

Based in Wellington (New Zealand), the company is also seeking approval for a large wind farm in Waikato on the North Island.

David Baldwin, Contact Energy’s Managing Director, said he was “delighted” with the board’s preliminary decision to grant consents for the Tauhara II project.

Required consents for the project include a new switchyard and the realignment and modification of a section of the existing 220kV Wairakei to Whirinaki, and a permit to take and use up to 213 kilotonnes per day of geothermal water and associated energy and heat.

Multiple well drilling and water discharge permits are also required.

Under the amended Resource Management Act, the new EPA board of inquiry consent process sets a deadline of nine months for a decision from time of notification.

Renewable generation accounted for 73 per cent of electricity generation in New Zealand in 2009 -- the highest level of renewable generation since 2004.

For additional information:

New Zealand Environmental Protection Authority

Contact Energy Ltd.

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