Mighty River aims to be a world leader in geothermal power

State-owned Mighty River Power has committed up to US$250 million to offshore geothermal power projects in a bid to become a global leader in the field.

Chief executive Doug Heffernan told MPs this morning Mighty River was now one of the world's top 10 geothermal power companies and had internationally recognised expertise.

Mr Heffernan said Mighty River would continue to focus on opportunities in the US and Germany but also Chile, where geothermal generation could potentially grow to twice the size of the sector here.

The company had earmarked $US250 million or 10 per cent of its balance sheet to geothermal projects offshore where it believed potential returns on investment were better than in New Zealand.

Mr Heffernan said the company wanted to see a return on that investment before it committed more to offshore projects but it was his intention to make Mighty River into one of the leading global geothermal power companies.

However, further investment could be constrained by a lack of capital and organisational capacity constraints, he told Parliament's Commerce Committee.

Meanwhile, Mr Heffernan said Mighty River had cancelled its planned April price hike for retail customers in Christchurch in recognition of the hardships they were facing after last month's quake.