New Zealand launches draft action plan to double geothermal energy use by 2040
Launch of New Zealand draft geothermal strategy with Hon Shane Jones during the 2025 New Zealand Geothermal Week in Taupo (source: Gladis Sondakh)
Carlo Cariaga
30 Jul 2025
As part of this year's NZGW, New Zealand has launched a draft geothermal action plan with the aim of doubling geothermal energy use by 2040.
New Zealand Resources Minister Shane Jones has launched a draft strategy that aims to double geothermal energy use in New Zealand by 2040. Consultation on the draft strategy is now open via the Ministry of Business, Innovation, and Employment.
The document, “From the Ground Up – A draft strategy to unlock New Zealand’s geothermal potential” was launched as part of this year’s New Zealand Geothermal Week held in Taupo and organized by Amplify and the New Zealand Geothermal Association (NZGA).
“Today, geothermal accounts for just under 20 per cent of our electricity generation. We are the fifth largest generator of geothermal in the world. Unlike hydro, wind or solar power, it isn’t reliant on the weather, and provides a clean, consistent and resilient power source,” said Jones in a speech during the launch event.
“Beyond electricity generation, direct geothermal energy is an enabler of industrial, commercial and agricultural activity. Currently there is over seven petajoules in direct geothermal heat use in pulp and papermaking, wood processing, dairy manufacturing and greenhouses each year.”
Towards making New Zealand a global leader in geothermal development
Despite geothermal being closely tied with the history of New Zealand, there are still several factors that are holding back its further growth. The Minister cites the lack of centralized exploration data, the lack of information for investment decision-making, and outdated regulations as some of the major factors.
To address these gaps, the draft strategy proposes a number of actions with defined timelines. The action plan goals can be classified as such:
- Improving access to geothermal data and insights
- Ensuring regulatory and systems settings are fit for purpose
- Advancing knowledge and uptake of geothermal technologies
- Enabling place-based geothermal clusters
- Driving science, research and innovation, including supercritical geothermal technology
The Minister makes special mention of the progress that New Zealand has made in the realm of supercritical geothermal. In late 2024, the Government of New Zealand announced that it has ringfenced $60 million from the Regional Infrastructure Fund to support this sector.
Some $5 million has now been drawn down from the budget for work on the detailed design and cost to drill the first of three exploratory deep wells in the Taupo Volcanic Zone. Discussions are still ongoing to narrow down the site for the first well, and drilling is expected to started in 2026.
Source: Beehive, RNZ, and NZ Herald
