Photo source: Contact Energy
Contact Energy’s new geothermal power station at Tauhara formally opens on Friday.
Located near Taupō, the Tauhara geothermal power plant is set to have a total capacity of 174 megawatts (MW) once fully operational.
Prior to its official opening, the Tauhara geothermal power station faced numerous delays, rising costs, and engineering challenges.
When the project was first announced in 2021, Contact Energy projected that construction would be completed by 2023 at an estimated cost of $580 million. However, construction commenced during the COVID-19 pandemic and extended over three and a half years. The total cost ballooned to $924 million, but on a good note, the plant’s capacity increased from the initially planned 152 MW.
Challenges have also included necessary modifications to the steam separation plant and repairs of underperforming steam-field valves and liquid handling systems. Recently, the station has been dealing with vibration issues but is expected to soon reach its full operational capacity.
A geothermal power station offers a nearly constant base load, except during maintenance outages and unforeseen breakdowns. This helps alleviate pressure on New Zealand’s hydro lakes and thermal plants, which are essential for balancing the variable output from wind and solar energy sources.
The addition of the Tauhara geothermal power station to New Zealand’s energy portfolio has bolstered geothermal energy’s contribution, meeting nearly 20% of the country’s electricity demand during the autumn months. Currently, it supplies approximately 3.5% of New Zealand’s total electricity needs.
The plant began delivering renewable energy to the grid in May 2024 and has been operating steadily at 152 MW since late June.
“Geothermal energy plays a crucial role in creating a reliable supply of electricity. It’s also where New Zealand leads the way with technology and ingenuity, so it’s exciting to expand our fleet of geothermal assets as well as to have two more geothermal power stations on the way,” Contact Energy’s chief executive officer, Mike Fuge, said.
The Tauhara power station was inaugurated just a week after Contact Energy revealed plans to construct the 101 MW Te Mihi Stage 2 geothermal plant, marking the initial phase in replacing its ageing 1950s Wairakei geothermal facility.
Additionally, Contact’s seventh geothermal power station, Te Huka 3, is nearing the completion of its commissioning process and is expected to produce sufficient renewable electricity to power 60,000 homes. This rollout timing is designed to facilitate the transition of skilled personnel from one project to the next.
Prime Minister Christopher Luxon has emphasised the significant role that geothermal energy plays in New Zealand’s energy landscape. He also noted that there is growing international interest in New Zealand’s expertise in geothermal energy. Delegations from Malaysia and Indonesia are expected to visit the country to explore this further.