After 5 years, the Geothermal: the Next Generation programme is coming to a close.
Here, we summarise the Regulatory Considerations component of the research. This research analysed and considered aspects of the regulatory planning framework as it applies to geothermal resource protection, use and development.
The aim of this work is to identify regulatory barriers and challenges to developing superhot geothermal resources in New Zealand, and to recommend changes to enhance the future potential contribution of geothermal to New Zealand’s energy future. These recommendations (for consideration by policy makers, regulators, developers, and others) take account of the significant future potential for geothermal energy, the existing regulatory framework, advances in research, modelling and geothermal practice, and the importance of placing geothermal values at the centre of decision-making.
Key findings:
1. Improved processes to champion geothermal within policy frameworks
The role of geothermal needs to be championed through the resource management reform process. This is essential to ensure that the values of geothermal resources generally, including superhot, are recognised and appropriately managed. This requires balancing the need for the protection of important geothermal values and enabling resource use and development where appropriate.
Existing geothermal systems classifications in regional planning documents are likely to hinder the ability of developing superhot resources where they are located outside of known ‘development’ geothermal systems.
Modifying existing consents may be a more streamlined pathway to enable superhot geothermal exploratory drilling than seeking new consents for a greenfield site.
Effective engagement and partnership with mana whenua is fundamental to sustainable geothermal resource use in NZ. Recognising Māori rights and interests, particularly their role as kaitiaki (guardians), should be prioritised in future resource management legislation, moving beyond the current focus of the RMA on consultation with iwi authorities.
2. Improvements to the national regulatory policy framework to specifically recognise geothermal
Development of a National Policy Statement (NPS) and accompanying National Environmental Standard (NES) that specifically recognise geothermal resources to streamline regulations, provide consistent national guidance, and reflect the significance of geothermal resources to Māori.
3. Reconsider the approach to geothermal system delineation and classification
Reconsideration of the approach to the delineation and classification of known system boundaries and the subsequent rules that apply. These changes would reduce the need to require a formal change in system status to enable production from a proven resource.
There are a range of alternatives for delineating geothermal system boundaries and managing activities within these systems that could achieve a better outcome for the protection and management of the resources.
Enhancing our understanding of the connectivity between deep superhot geothermal resources, shallow systems, aquifers, and surface features is important for future resource use and regulatory approvals. More detailed modelling studies, exploratory drilling and well testing will further develop our understanding and validate / modify connectivity models and understanding.
NZ currently employs conventional and low temperature geothermal. In future and with investment and research, there is significant opportunity from additional geothermal technologies to contribute to achieving our net-zero targets in and beyond 2050.
4. Government investment to reduce risk & encourage investment
High costs and the absence of short-term returns pose challenges for superhot geothermal exploration. No superhot wells have been drilled in NZ, leaving a data gap for investors. Past geothermal developments in Aotearoa New Zealand benefited from substantial government investment, reducing risk and encouraging private sector involvement. A similar government-backed approach would be a significant driver for superhot geothermal exploration and likely be a precursor to attracting future investment in superhot geothermal development.
5. Share a positive narrative about geothermal development
Past geothermal development practices have caused adverse effects. But modern practices, including reinjection, independent oversight from peer review panels and adaptive management of environmental effects, enhance sustainability and reduce environmental risks. Sharing information about the potential benefits of superhot geothermal energy will empower communities to engage meaningfully in future policy discussions and consent processes.
Growing recognition of geothermal energy's role in meeting energy demands and carbon-neutral goals is emerging from the Climate Change Commission and government ministers. However, geothermal has yet to be fully acknowledged in government policy.
6. International collaboration to facilitate advancement
While NZ has not yet drilled into superhot geothermal conditions, international research into these deep geothermal systems is ongoing. Global collaboration and knowledge sharing can help avoid duplication of effort, facilitate advancements and may assist in attracting international investment in superhot geothermal in Aotearoa New Zealand.
