2022 Annual Aotearoa New Zealand geothermal review

Abstract

During 2022 geothermal electricity generation increased by 1% to a new record of 8,060 GWh. This output supplied 18.5% of New Zealand’s electricity. Due to the impact on hydro generation from favourable hydrologic conditions, total renewable generation increased to 87% of national electricity supply.
Net installed geothermal capacity remained steady at 1033 MWe for 20 stations on 8 fields. Over the next five years, geothermal electricity generation will likely increase by 24% to over 10 TWh per annum with the addition of new plants: Tauhara II (174 MWe), Te Huka 2 (50 MWe) and Nga Tamariki (37 MWe).
The industry’s weighted average CO2e emissions rate remained steady at 63 tonnes of CO2e per MWh. In response to global imperatives to decarbonise and steadily increasing carbon prices (peak of NZ $88.5/tonne in November 2022), power producers progressed pilot schemes for reinjecting CO2, CH4, and other non-condensable-gasses. These schemes at Nga Tamariki, Ngawha, and Te Huka power stations are able to reinject between 25% to 100% of emissions.
Although developers did not commission new high-temperature, direct-use facilities during the year, projects to increase heat use by (13 GWh) are in execution phase with commissioning expected in late 2023.
Operators drilled six deep conventional wells and five shallow wells during the year.
NZ Universities continued to support the industry. Enrolments at the NZ Geothermal Institute look set to bounce back from the COVID low of six in 2021.