[1][2] Geothermal energy constitutes New Zealand's second-largest renewable electricity source, with the North Island estimated to have a potential of 1,000 MW for power generation.
Exploration in the South Island has revealed geothermal prospects beneath the Alpine Fault, yet the Institute of Geological and Nuclear Science (GNS) suggests these resources are likely minor, suited more for small-scale direct use than for extensive electricity generation.
[3] It has also been described as the currently (2000s and 2010s) most attractive new source of energy for New Zealand, as petrochemical fuel prices rise and easy hydro power sites have been tapped - it has been estimated that another 1000MW of geothermal resource can be used for generating electricity.
However, more systems (some of them potentially exploitable) are scattered all over the country, from the Hauraki Plains to the Bay of Plenty to numerous hot springs in the South Island, most of them associated with faults and other tectonic features.
[citation needed] For over six decades, geothermal energy has been a key component of New Zealand's electricity landscape, with the majority of its facilities situated in the Taupō Volcanic Zone.
Looking ahead, it is projected that by 2030, the electricity generated from geothermal sources in New Zealand will reach approximately 10.3 terawatt-hours (TWh).
As part of EDIN,[10] New Zealand is involved in international research projects to evaluate and increase geothermal power generation domestically as well as in 18 Pacific Island nations.