The competition for access to geothermal resources is currently heating up in the Taupo-Rotorua region. In the first of a three-article series, Damian Stone explores this phenomenon and what it means for the local economy.
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Geothermal energy currently accounts for approximately 10 per cent of New Zealand's electricity generation capacity.
In 2010
alone, at least 160 megawatts of new geothermal electricity generation was commissioned - more than enough to meet the electricity needs of Tauranga, Rotorua, Hamilton and Taupo combined.
Technological advances mean geothermal energy is now a viable long-term source of electricity generation in New Zealand. Industry predictions estimate 20 per cent of New Zealand's electricity needs will be met by geothermal generation by 2020. Most of that generation will be based within the volcanic interior plateau, which represents a significant opportunity for the Taupo-Rotorua region.
There are a limited number of known geothermal fields within the region suitable for geothermal electricity development. The land under which those fields are located can now be used to produce electricity, as well as the more traditional uses such as forestry and farming.
For landowners, this is a golden opportunity.
Much of that land is Maori-owned and has been for centuries. As a result of this long association with the geothermal resource, Maori have particular interests in it.
Maori have traditionally used the geothermal resource for a range of purposes. They cook with it, bathe in it, dye clothes with it and use it for medicinal purposes.
Iwi are taking a more active role in developing this resource through electricity generation. For example, the Nga Awa Purua Power Station, commissioned in 2010, is the largest single turbine geothermal generation facility in the world and is the result of a joint venture between the Tauhara North No2 Trust and Mighty River Power.
There are many more projects between Maori and generating companies in the pipeline and there is potential for more.
Most of New Zealand's geothermal generation will be centred in the Taupo-Rotorua region, so the local economy will also reap rewards. A significant amount of this development is undertaken on Maori-owned land, whose owners largely reside in the area, and much of the ongoing benefits will be retained within the local economy.
Damian Stone is a partner at Kahui Legal, a Wellington law firm providing legal advice on geothermal and commercial issues to businesses, individuals and iwi in the Rotorua/Taupo region.
