December 2, 2024

Team Profile:
Regulatory considerations for the future of superhot geothermal development in the TVZ
contributor(s)

photo credit:
Margaret Low (GNS Science)

Are the existing regulatory frameworks under the Resource Management Act set up to effectively manage future superhot geothermal development in New Zealand? A recently published report, and conference paper, explores this question.

Superhot geothermal, with potentially zero CO2 emissions, presents an opportunity to more than double current geothermal electricity generation from 2037.  This study considered the nationally significant potential for Aotearoa New Zealand from superhot geothermal resources, and whether the existing regulatory framework under the Resource Management Act 1991 is set up to effectively manage superhot geothermal development.

Our aim is to assist in the development of future legislation change, national direction and the development of regional planning frameworks.

In consideration of the significant future potential for geothermal energy, the existing regulatory framework, advances in research, modelling and geothermal practice, and the critical need to place geothermal values at the centre of decision-making, this report presents a series of recommendations for consideration by developers, policy makers, regulators and others interested in realising our geothermal potential.

The key recommendations are:

1.       Partnership and engagement

There are significant values associated with geothermal resources that must be central to further geothermal resource utilisation. Effective engagement and partnership with mana whenua is fundamental to sustainable geothermal resource use in New Zealand. Recognising Māori rights and interests, particularly their role as kaitiaki (guardians), should be prioritised in future resource management legislation, moving beyond the current focus on iwi authorities.

2.       Policy and regulatory revisions

While the regulatory framework was not specifically designed to accommodate these resources and does not fully reflect modern practices and technologies, it does not explicitly prevent superhot geothermal development. Improvements are however required to reduce regulatory barriers while protecting important values.

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, it has yet to be fully acknowledged in government policy. National Policy Statements (NPS) and National Environmental Standards (NES) that provide specifically for geothermal resources should be developed as tools to streamline regulations and provide consistent national guidance. These tools should reflect the significance of geothermal resources to Māori.

Geothermal system boundary delineation is important to ensure protection of valuable surface features by directing that geothermal development is inappropriate in some areas, but this approach may not be necessary for areas with potential for sustainable geothermal resource use. Alternative methods for delineating system boundaries should be explored to account for modern approaches to modelling, monitoring, and system management.

3.       Interconnectivity research

Enhancing our understanding of the connectivity between deep superhot geothermal resources, shallow systems, aquifers, and surface features is vital for future resource use and regulatory approvals. More detailed modelling studies, exploratory drilling and well testing will further develop our understanding and validate these connectivity models.

4.       Investment in exploration

High costs and uncertain short-term returns pose challenges for superhot geothermal exploration, and 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 be a precursor to attracting future investment in superhot geothermal development.

5.       Public engagement

Past geothermal development practices have caused adverse impacts. Shaping a positive narrative around future geothermal energy use is crucial. Modern practices, including reinjection, independent oversight and adaptive management, 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.

6.       Global collaboration

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.

Download report: Regulatory considerations for the future of superhot geothermal development in the TVZ

Download NZGW 2024 paper: Unlocking our potential: a superhot geothermal future for Aotearoa New Zealand

Download NZGW 2024 slide deck: Unlocking our potential: a superhot geothermal future for Aotearoa New Zealand

read more

categories

Governance & Regulation

tags

geothermal: the next generation (GNG)
legislation
regulation
geothermal drilling
supercritical resources
consenting
statutory framework

Further Updates

December 15, 2021

Team Profile:

NZ Geothermal Updates
December 8, 2021

Team Profile:

Full Steam Ahead