Geothermal overtakes gas as NZ’s second electricity source
Geothermal output – the only renewable electricty not dependent on the weather – surpassed gas-fired generation during the December quarter.
Geothermal power generation is now this country’s second most important electricity fuel source behind hydro, according to MightyRiverPower.
The company says geothermal output – the only renewable not dependent on the weather – surpassed gas-fired generation during the December quarter, having increased by more than 150% in the past decade.
However, while geothermal made up 40% of Mighty River total generation during the quarter, the company’s operating statistics for the three months to December 31 still showed a decrease in overall generation.
Mighty River’s total generation volume fell 1% compared to the previous corresponding quarter due continued weak inflows across its hydro catchment along the Waikato River.
Hydro production of 826GWh was down 159GWh (16%) on the same quarter in 2013 – almost 200GWh below the company’s average, making it the lowest second quarter hydro production since the company was formed in 1999.
However, Lake Taupo storage increased by 37% during the quarter, ending the period at 95% of average.
Meanwhile, ASX futures prices increased across all maturities, reflecting the significant reduction in contracted gas electricity generation in New Zealand, as well as lower coal commitments by Genesis Energy.
The reduction of more than 5,000GWh of thermal fuel commitments since 2013 has restored the balance of market supply and demand from an energy perspective, Mighty River says.
National demand increased by 2% during the period compared to the previous corresponding quarter, meaning electricity consumption was back up to 2011 levels.
Mighty River has poured $1.4 billion into geothermal investment, boosting geothermal output from 6.5% of national supply, to 16%.
Duncan Bridgeman
Tue, 20 Jan 2015
Tue, 20 Jan 2015
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Geothermal overtakes gas as NZ’s second electricity source
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