Geothermal power is a major part of New Zealand’s energy system and one of the reasons the country has such a high share of renewable electricity.
Overview of geothermal power in New Zealand
- Geothermal provides about 18–19% of New Zealand’s electricity
- It is the second-largest renewable source after hydropower
- Total installed capacity is over 900 MW
- The country ranks among the top geothermal producers in the world
This is unusually high—most countries use very little geothermal energy.
Why New Zealand is ideal for geothermal energy
New Zealand sits on the boundary of the Pacific and Indo-Australian tectonic plates, which creates strong geothermal activity
Key region:
- Taupō Volcanic Zone (North Island) – main geothermal hotspot with many power plants
This gives:
- High underground temperatures close to the surface
- Steam and hot water reservoirs that are easy to access
How geothermal power works (simple)
- Wells are drilled deep underground (up to ~3 km)
- Hot steam/water is brought to the surface
- Steam spins turbines → generates electricity
- Water is often re-injected to keep the system sustainable
Key advantages
- Reliable (baseload power) – works 24/7, not weather-dependent
- Low emissions – much lower than fossil fuels
- Domestic resource – reduces need for imported fuels
- High efficiency – plants can run ~95% of the time
Examples of geothermal power plants
Major plants are mostly in the North Island:
- Wairākei (one of the oldest, built in the 1950s)
- Kawerau geothermal field (multiple plants)
- Ngā Awa Pūrua, Rotokawa, Ngā Tamariki
Recent development (2026):
- A new plant called TOPP2 (49 MW) has just started operating, helping expand renewable capacity
Future potential
- New Zealand could roughly double geothermal capacity (another ~1000 MW possible)
- Expected to remain 15–19% of electricity supply by 2035
- Technology improvements aim to reduce emissions even further
Limitations
- Only works in geologically active areas
- High upfront cost and long development time
- Environmental & cultural concerns (especially for Māori land and geothermal features)
Conclusion
New Zealand is one of the global leaders in geothermal energy because of its unique geology. It provides a stable, low-emission backbone for the country’s electricity system, complementing wind and hydro power.