Further expansion of electricity generation at Top Energy’s Ngāwhā geothermal power station has moved a step closer, with civil works and drilling programme now underway to confirm the geothermal resource.
The work is the critical first stage of the proposed next expansion of the Ngāwhā geothermal power station, following approval of the business case by the Top Energy Consumer Trust.
If the drilling programme confirms sufficient geothermal resource, further investment approval will be sought to proceed with construction of OEC5, a new 32 MW generating station.
OEC5 would increase Ngāwhā’s total generation capacity from 57 MW to 89 MW, significantly increasing the amount of locally generated, carbon-neutral renewable electricity available from the Far North.
Top Energy Consumer Trust Chair Yvonne Sharp said continued investment in developing and expanding generation at Ngāwhā had delivered significant benefits for the people of the Far North.
“Our focus is always on decisions that provide intergenerational value for our community. This is an important investment in local generation and energy resilience, while also protecting the long-term interests of consumers in our district.
“We know many households and businesses in the Far North are feeling the pressure of rising living costs, including electricity prices.
“Over the years, Ngāwhā has played an important role in helping us manage those pressures. Cashflows from the geothermal business have been used to help keep network prices down, and today Top Energy’s lines charges remain at around the same level as they were in 2016. In addition, direct returns to consumers have increased 50% since the last power station was completed in 2020.”
Ms Sharp said additional generation from Ngāwhā would also increase the amount of electricity available to the market from the Far North and support greater retail competition in the region.
Ngāwhā currently generates enough electricity to meet 125% of the Far North’s electricity needs for 95% of the year, with surplus electricity exported south into the wider electricity system.
Over time, operating cash flows from OEC5 are expected to provide further opportunities to invest in the electricity network, moderate future network price increases, or provide returns to consumer owners.
Ms Sharp said the Trust recognised that a project of this scale carried risks but was satisfied these had been comprehensively assessed and that appropriate controls were available to manage them.
“The Trust acknowledges the work of the Boards of Top Energy Limited and Ngāwhā Generation Limited, together with Chief Executive Russell Shaw and management, in bringing the project to this point.
“We look forward to this investment supporting greater security of supply and continuing to deliver benefits for the consumers of the Far North.”
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For more information: Philippa White - 021 2418740