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Figure 17.2. Map of Taupo Volcanic Zone Geothermal Fields. Stars identify developed geothermal systems. Taheke, a newly explored system, is located north of Tikitere. Mighty River Power and Contact Energy, the two largest geothermal power plant operators in New Zealand, are opting to develop geothermal resources for much of their new generation, because it is the most-economic, renewable, and low-carbon-emitting option. In suitable areas, there are significant cost advantages (without the need for subsidies and feed-in tariffs), although these are now boosted by a carbon charge of NZ$25/tonne of CO2 equivalent applied to all industrial emitters. With the carbon charge, the Ministry of Economic Development expect that long-run marginal costs for the next 900 MWe of new geothermal projects will be in the range of $NZ 62-73/MWh ($US 50-60), (see Figure 17.5) which is lower than the other alternatives for new electricity production. These cost advantages are partly the result of relatively low-risk drilling (>85% success in recent years), which has been achievable because of applied research, and knowledge from historic, government-funded, exploration surveys and drilling. 183PDF Image | Geothermal Research and Tech IEA
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