Power station work gets under way

Construction began today on a new geothermal power station near Taupo.

Mighty River Power, joint venture partner Tauhara North No2 Trust and construction firm Sumitomo marked the start of construction at a ceremony this morning. The 132MW station, near the existing 34MW power station, is part of a Mighty River Power plan to generating 500MW of geothermal-derived electricity by 2012.

As well as its Rotokawa joint ventures, Mighty River Power is a 25 per cent shareholder in the Tuaropaki Power Company's 112MW Mokai station, is nearing completion of a new 90MW geothermal station at Kawerau, and is planning exploration on the Nga Tamariki field later this year.

Mighty River Power chief executive Doug Heffernan said as the only renewable fuel not subject to climate variations, geothermal had a key part to play in ensuring security of supply.

"Geothermal generation perfectly complements our hydro generation portfolio and the wind-power initiatives we are exploring," Mr Heffernan said.

"Its high capacity factor also makes it a more efficient use of transmission capacity."

All Mighty River Powers geothermal projects are run as joint ventures between the company and landowners, and the continued strengthening of the partnerships between Maori and Mighty River Power was a key ingredient in the company's development strategy.

Makere Rangitoheriri, chairman of Tauhara North No2 Trust, said the joint venture gave Maori a significant stake in the long-term benefits. It would enable the trust to extend its health and education initiatives.

- © Fairfax NZ News