What is our opportunity?
New Zealand is the fifth largest geothermal power producer globally and our expertise has shaped projects around the globe. But our unique geology offers a world-class resource with significant untapped potential.
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Why now?
Today, advances in technology offer the potential to unlock new efficiencies in existing operations and make previously overlooked fields viable. The opportunity is clear: shift from legacy to momentum – doubling geothermal energy use and expanding applications across the full heat spectrum.
The world is moving towards cleaner, more resilient energy systems. New Zealand’s electricity demand is projected to grow by 68 per cent over the next 25 years,[2] and our industrial sectors need to reduce emissions. Geothermal can help meet this challenge, providing low-emissions heat and electricity to food and timber processors, greenhouses, and even powering data centres. Because geothermal is a renewable natural resource, rooted in our land, it offers long-term energy security.
A platform for inclusive growth
Geothermal development is a powerful lever for regional and Māori economic development. Many geothermal fields are located within or near whenua Māori, offering opportunities for iwi, hapū and Māori landowners to lead and benefit from the resource.
There are significant examples of Māori-led geothermal enterprises that have transformed the resource under their feet into a powerful tool for long-term economic, social and cultural benefits. Smaller players and Māori-led development will be critical to achieving the ambitious goals of this strategy.
Protecting, retaining and growing tourism, spa and wellness and unique biodiversity initiatives can highlight the power, natural wonder and therapeutic potential of geothermal resources and further enrich local economies. Deployment of geothermal district heating schemes, commonly utilised in Europe, also present an opportunity for sustainable, affordable heating for New Zealand communities.
The potential of lower temperature geothermal resources
New Zealand’s geothermal development to date has mainly focused on electricity generation from the high-temperature geothermal systems of the TVZ and Ngāwhā. However, we also have significant lower heat geothermal opportunities, such as the Tauranga geothermal system,[3] which present underutilised opportunities to establish heating networks, decarbonise commercial operations and increase energy security.
Looking ahead
Supercritical/superhot geothermal has the potential to provide up to three times the energy output of conventional geothermal resources. Enhanced geothermal systems (EGS) are an approach to stimulating geothermal production that is increasingly used overseas, and New Zealand has much to learn from these developments. Advanced geothermal systems (AGS) may also play a role in our energy future – these systems harness the power of hot dry rock deep underground to create an artificially engineered geothermal resource without extracting any geothermal fluid. These next-generation geothermal technologies could unlock greater capacity from already-producing reservoirs and in lower temperature geothermal areas.
Footnotes
[1] Global Top 10 Geothermal Power Countries at Year-End 2025(external link) — Think Geoenergy
[2] Government Policy Statement for Electricity (October 2024) [PDF 252KB](external link) — Beehive.govt.nz
[3] More information can be found in the Preliminary Scoping Study: Geoheat Potential of the Tauranga Geothermal System (GeoExchange NZ Limited, 2024) [PDF 3MB](external link) — Bay of Plenty Regional Council