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One new geothermal project (Nga-Awa-Purua, Rotokawa Geothermal Field) was able to benefit financially from the international sale of carbon credits from its 2010 first year of operation (410,000 Emissions Reduction Units sold to Deutsche Bank AG, for NZ $9.3 M at NZ$ 22.78/unit). This was based on rights of up to 791,000 units secured in 2004. The tax will provide an additional financial incentive to help boost economically marginal renewable energy projects (for both electricity generation and direct use), and reduce the use of fossil fuels. A long-term strategy is to encourage the transport industry and the public to use more electric vehicles, and to provide the additional energy needed in the form of new, economically- viable, base-load geothermal electricity generation for off-peak recharging of vehicle batteries. 17.2.3 Progress Towards National Targets The Government has set targets for 9.5 PJ/yr of additional direct use renewable energy (geothermal or wood biomass), and 90% of all electricity from renewables by 2025, along with fast uptake of electric vehicles. These were originally set in 2007, but have recently been re- affirmed. Progress towards the target in geothermal direct use is steady. For electricity, the renewable percentage of total generation has increased from about 60% to 75%, and is likely to reach 90% in less than 10 years, well before the government target date. Projecting current trends, and assuming all renewable energy projects proceed as planned, geothermal electricity has the potential to contribute about 23%, wind about 8% and hydropower about 58% of total GWh by 2016 (Figure 17.3). Coal-powered generation (with the highest CO2 emissions per MWh) is expected to decrease to near zero. Variability in seasonal hydro and wind generation means that some standby capacity and peak load capacity will still need to be maintained, and it is envisaged that fast-start gas-fired turbines will probably continue to play this role, but to a reduced extent. Figure 17.3 Comparison of NZ electricity generation per quarter by type: history since 1974 (from MED data) and overlapping predictions from the last quarter of 2009 until 2016. 186PDF Image | Geothermal Research and Tech IEA
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