Contact Energy announces a planned 51MW expansion of its Te Huka geothermal power plant and an increase in capacity at its Tauhara development currently under development.
In its annual results reports for the 12 months to June 30, 2022, New Zealand renewable energy company Contact Energy released its financial results and new investment plans.
It announced that it would build a new 51.4 MW geothermal power plant next to its existing Te Huka power station. The approved investment is NZ$300 million (approximately $189 million).
Te Huka Unit 3 is the latest investment commitment in Contact’s world-class geothermal development pipeline after Tauhara. Once both stations are operational, they will generate clean, low-carbon, renewable electricity that will operate 24/7 and will not be dependent on weather conditions.
This combined investment will increase Contact’s renewable electricity generation by 25% over what is produced today and increase New Zealand’s total renewable electricity supply by more than 5% on average per year. Earlier this year, Contact announced an 11% increase in the planned capacity of the Tauhara power plant, from 152 MW to 168 MW, following the exceptional results of the drilling campaign. It should be completed in the second half of 2023.
“While COVID-19 has impacted the progress and cost of the project, we continue to evaluate all options to provide more yield and strengthen returns. When complete, Tauhara will be a class-leading renewable development. that will serve as the basis for New Zealand’s increased renewable electricity needs over the next decade,” said Fuge.
The company expects the plant to start operating in the fourth quarter of 2024.
Source: Press release and presentation by Contact Energy
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