NZ Unveils National Strategy to Double Geothermal Energy Use by 2040

The New Zealand Government has launched a new national strategy aimed at unlocking the country's vast geothermal potential, with a goal to double geothermal energy use by 2040 and position the country as a global leader in next-generation geothermal technologies.

Resources Minister Shane Jones unveiled the strategy, titled "From the Ground Up," in Rotorua at an event attended by industry leaders, investors, stakeholders and media.

The strategy outlines a coordinated plan to accelerate geothermal development, attract new investment, support regional economies and strengthen New Zealand's renewable energy system.

"Geothermal has been used for generations to power our regions and industries," Mr Jones said. "This strategy provides momentum by clearing barriers, speeding up development, giving investors confidence and giving developers a green light to get on with it."

A Strategic Push to Expand Renewable Energy

Geothermal energy already plays a major role in New Zealand's energy mix, contributing around 18 percent of the country's electricity supply. Unlike solar or wind energy, geothermal power provides continuous baseload generation, making it a stable and reliable source of renewable electricity.

Beyond electricity generation, geothermal energy is widely used for direct heating applications, supporting industries such as:

• Timber processing and drying

• Dairy and food manufacturing

• Glasshouse horticulture

• Aquaculture operations

• Tourism and spa facilities

These applications reduce reliance on fossil fuels while lowering energy costs for regional industries.

According to the Government, expanding geothermal energy use could significantly strengthen New Zealand's energy security, emissions reduction efforts and regional economic development.

Removing Barriers to Investment

A key focus of the From the Ground Up strategy is removing regulatory and technical barriers that have slowed geothermal development.

The strategy includes measures to:

• Modernise outdated regulatory settings governing geothermal resources

• Improve access to geological and geothermal data for investors and developers

• Reduce early-stage exploration risks that often deter private investment

• Support expansion of both geothermal electricity and geoheat applications

By reducing uncertainty and improving access to information, the government hopes to accelerate exploration and make geothermal projects more attractive to investors.

"Geothermal development requires significant upfront investment and technical expertise," Mr Jones said. "This strategy gives the sector the tools and confidence needed to unlock the full potential of our geothermal resources."

Pioneering Next-Generation Geothermal Technology

The strategy also highlights New Zealand's potential to lead the world in next-generation geothermal technologies, particularly supercritical or superhot geothermal systems.

Supercritical geothermal energy is produced from extremely high-temperature and high-pressure reservoirs deep beneath the Earth's surface. These resources can generate significantly more electricity from a single well than conventional geothermal systems.

Experts say successful development of supercritical geothermal technology could dramatically increase geothermal power output while reducing land and infrastructure requirements.

"The strategy lays a pathway for New Zealand to lead the world in next-generation geothermal technologies, including supercritical and superhot geothermal projects," Mr Jones said.

Regional Powerhouses Already Driving Growth

Geothermal development has already transformed several regional economies in the central North Island.

Key geothermal hubs include:

• Ngāwhā in Northland

• Kawerau in the Bay of Plenty

• Taupō in the Waikato region

These areas host geothermal power stations, industrial heat users and tourism ventures that rely on geothermal resources.

"From Ngāwhā, Kawerau, Taupō and beyond, geothermal is already powering industry, tourism and local jobs while contributing around 18 percent of electricity to the national grid," Mr Jones said.

"With the right settings, geothermal can do even more through attracting investment, enabling new technologies and giving Māori landowners and regional businesses real opportunities to create value from the resources beneath their feet."

Strengthening Partnerships with Māori

Following consultation on a draft version of the strategy, the final document has been strengthened to better reflect the cultural, environmental and economic significance of geothermal resources for Māori communities.

The strategy acknowledges geothermal resources as a taonga (treasured resource) for tāngata whenua, committing the Government to ongoing partnerships in geothermal development, environmental protection and economic participation.

Many geothermal projects in New Zealand already involve iwi and Māori land trusts, particularly in regions where geothermal resources are located on Māori-owned land.

"Geothermal has always been a taonga for Māori," Mr Jones said. "This strategy respects that history while opening the door to shared prosperity and long-term regional benefits."

Powering New Zealand's Future Energy System

Officials say geothermal energy will play a critical role in building a more resilient and low-emissions energy system as electricity demand continues to grow.

New Zealand is expected to require significant additional electricity generation over the coming decades as transport, industry and heating systems increasingly electrify.

The Government believes geothermal energy — with its reliability and low carbon footprint — can help meet that demand while supporting regional development and technological innovation.

"This strategy is about action through unlocking investment, supporting innovation, and building a stronger, more resilient energy system," Mr Jones said.

"We're backing geothermal to help power New Zealand's next chapter of growth."