Shane Jones unveils plan to double geothermal energy by 2040
Among the proposals were improving access to geothermal data and ensuring regulatory settings were fit for purpose.
The draft strategy paper said 'supercritical' geothermal technology – which involves drilling deeper into the Earth's crust – could offer up to three times more energy than current geothermal energy.
The Government has ring-fenced $60 million from the Regional Infrastructure Fund to fund research into the 'super' resource.
Jones said $5m of that funding has been drawn down for work on the detailed design and cost to drill the first of three exploratory deep wells in the Taupō Volcanic Zone.
New Zealand's first, and the world's second, geothermal power station was Wairakei, near Taupō, which started generating electricity in 1958.
Wairakei is now one of 17 geothermal power plants across eight geothermal fields in New Zealand – which deliver a combined generation capacity of 1207 megawatts.
Unlike wind and solar, geothermal energy is consistently available.
In 2024, geothermal energy accounted for 8741 GWh, or 19.9%, of New Zealand's annual electricity generation.
The country's geothermal reservoirs (up to 350C and located between 1km and 3.5km deep) have long powered renewable energy.
The Taupō Volcanic Zone offered a rare opportunity to access superhot fluids at depths beyond 5km and temperatures exceeding 400C, the paper said.
Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.
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RNZ News
29 minutes ago
- RNZ News
Will Auckland's Sky World ever be returned to its former glory?
If you ask an Aucklander about Sky World Indoor Entertainment, once known as the Metro Centre, chances are they'll have a story to tell about getting lost inside the labyrinth-like interior, loitering outside Burger King or celebrating a birthday at the long-gone Planet Hollywood. But over the last decade the Queen St building has slowly decayed with numerous businesses shutting up shop and foot-traffic dropping dramatically. In 2017, RNZ reported the building remained open without a warrant of fitness for more than a year despite a "high risk" to public safety. Auckland Council confirmed the building does now have a valid warrant of fitness through to 24 August. The building spent two years on the market and as of October 2024, the owner of the building James Kwak from JNJ Holdings, said there were plans for redevelopment. Inside the maze-like structure of Sky World. Photo: MARIKA KHABAZI / RNZ Kwak has owned the building since 2011 when he paid $37 million for it. In 2026 the City Rail Link (CRL) is set to open with a stop called Te Waihorotiu Station just 50 metres from the building - it is expected to be the busiest station , catering for up to 54,000 passengers per hour. While it could be an opportunity for Sky World to attract more customers, remaining tenants inside the building said they had been "left in the dark" about any refurbishment plans. Most of the stores inside Sky World are empty, and the international food court has been demolished, leaving Event Cinemas, Metro Lanes, Game On arcade and Odyssey Sensory Maze. A Jack's Fried Chicken has opened within the past year. A false wall covers up what was once the entrance to the international food court. Photo: MARIKA KHABAZI / RNZ A worker at GameOn said they had "no idea" what was going on in terms of the building being renovated or sold. "I don't know… I would love it to be developed or sold. When I first heard about it I was looking forward to that." The food court now being empty and closed off by false walls, stopped people being able to walk through a large section of the building, the worker said, making it uninviting for customers. The worker said the building, and most of Auckland's mid-town , had taken a big hit during the Covid-19 pandemic and this was when many remaining tenants made the decision to leave. An interior entrance to GameOn arcade. Photo: MARIKA KHABAZI / RNZ "I had a big walk-through mid-town the other day, it's a bit sad. Our building is one of the worst ones." The arcade had been a tenant at Sky World in some form, since 1999, the year the building, then Force Entertainment Centre, first opened. The worker said they had been on level two, until 2018 when they moved to the upper basement. "It's not been a great experience [recently] the building was badly hurt by Covid, and it hasn't refilled." The food court has been removed. Photo: MARIKA KHABAZI / RNZ The arcade was lucky to have survived, and the worker said he believed this was only due to them having an entrance to the store from Queen St. He said he believed if the building could only be accessed from inside the complex, it would not still be in business. "I would like to see it in its former glory - the council, everyone, wants to see this part of town fixed." The manager of Odyssey Sensory Maze, which is hidden down in the basement of Sky World, said they had also been kept in the dark about renovations. The state of the building and their positioning in the basement did impact business, she said. "Customers often get lost trying to find us or leave bad reviews online because of the state of the building, which is something we can't control, it's not ideal. "Things look messy and dirty - for me, it would be nice to have some more life in it." Rubbish and debris tossed into the corners of Auckland's Sky World building. Photo: MELANIE EARLEY / RNZ Former tenant of Sky World, Brad Jacobs, the director of Coffee Club, said the final straw for many tenants was the cost of rent during the pandemic. "We used to trade well there, it was a good store prior to 2020, but when things got tough during the lockdowns we could not reach any fair rental agreement - we tried very hard, we begged even." But Jacobs said there was no support offered by the landlord. Coffee Club exited the building in March 2021, and Jacobs said by that stage most of the other food places had already closed. "The whole thing was ridiculous, bizarre, I still don't know what the landlord was trying to achieve. "By then we could see the writing on the wall - the city was falling apart, and it was not the place to be." The entrance to Sky World is down a series of steps next to Aotea Square. Photo: MARIKA KHABAZI / RNZ For Sky World to thrive again, Jacobs believed it would need a clear vision. "Everyone has a story about that building, I remember I used to hang around the Borders bookstore and go to the movies, but the design is past its used by date now. "It will be sad if it just sits like that for another ten years." Speaking to people passing through Sky World on a week day, one woman said she still visited to watch a movie or go bowling. She remembered the food court was thriving when she was a child and hoped the complex could be rebuilt in some way. "It's quite sad seeing it so empty." Bumping into another person is now a rarity at Sky World. Photo: MARIKA KHABAZI / RNZ Another passer-by said he had been involved with the opening of Planet Hollywood, an international movie-themed restaurant chain, when the complex was built. He remembered actor Robin Williams came down for the opening and the premier of his movie Bicentennial Man at the IMAX cinema which caused a serious buzz. "It just deteriorated over the years … it's an awkward building to get around. It's confusing with the sky ways going in every which way, it's hard to find which level you're exactly on. "I just use it to cross through to the other side now." Another woman passing by described it as a "ghost town", while another queried whether it was closed altogether. One of the three architects behind the design of the building agreed it was past its used by date. What the exterior of Sky World looked like in the early 2000s. Photo: ASHLEY ALLEN / SUPPLIED Ashley Allen said he had been inspired by the film Blade Runner when he designed the building 25 years ago with Jamie Simpkin and Peter Diprose. "The brief was to create a space that becomes a dynamic escape from city living and working life. The intention was this building would be without doubt memorable and the hub for entertainment for all in Auckland City. "I have a sadness that the generation of children who enjoyed this space now as adults see its demise due to minimal maintenance, minimal refurbishments or any new innovations". He said the building was designed to be maze-like, to give people a sense of escapism and make it feel as though they had entered another world. "I wanted people to get lost and discover things within the building. I liked the playfulness of it, the rocket lift, the bridges almost to nowhere." Bookstore Borders was inside Sky World until 2012. Photo: ASHLEY ALLEN / SUPPLIED The building had gone down hill dramatically, Allen said, and every building needed to be refurbished and re-energised throughout its life. "You need to put money into it. Successful buildings need to be constantly refreshed and it's so unfortunate the owner seems to not want to spend any money on it - it's very sad." An entertainment centre needed to be refreshed every four to five years, Allen said, as technology moved on. "Entertainment is not a static approach - what's needed to entertain a 12-year-old today is not the same as what was needed 15 years ago." He did not believe it would take much to make the building successful again, but it would need someone to agree to spend the money. The exterior of Sky World as it stands today. Photo: MARIKA KHABAZI / RNZ "It needs a new owner; it needs to be refurbished to get good tenants back in there or it needs to be demolished and rebuild with higher density." Allen said he did not want to see the building demolished, but he found it hard to see it in its current state. "It feels like someone is abusing your child - I'd do anything I possibly could to help the current owner out or help a new one fix it. "I just want someone to refurbish it. I'm keen for Auckland to have an entertainment hub again. All it takes is one person to start refurbishing and then people will join in." Heart of the City's Viv Beck would not comment directly on the state of Sky World, but said in general, next year's opening of the CRL would be great for the mid-town area. There are numerous empty buildings in Auckland's CBD. Photo: MARIKA KHABAZI / RNZ "It's certainly an opportunity… it has been challenging for businesses operating there with the ongoing construction." Beck said they were thinking about how to bring people back to the area, and she was optimistic about the long-term. "I see next year as a milestone. I think the concept of an entertainment centre is still relevant, but it needs to be an immersive experience with new technology. The concept is something that people still want." Attempts by RNZ to reach the owner of the building James Kwak or his company JNJ Holidings have been unsuccessful. You can still catch a movie inside Sky World. Photo: MARIKA KHABAZI / RNZ The number listed on a 2022 renovation plan belonged to a man who said he had "no idea" why his number was listed. Voice messages left for numbers which were listed for lease enquiries on signs inside the building went unanswered, as did emails to Kwak and his company. A number listed as accounts on the company's office led to a man who said he had not worked at the company for two years and he requested RNZ "stop calling". The building's manager Tristan Kim, confirmed to RNZ the email had been received and said he would get back in touch with RNZ about whether there were any renovations underway. "I'm at a restaurant with my son - I'll call you back." By time of publication, he had not responded. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
NZ Herald
an hour ago
- NZ Herald
Surcharge ban a win for consumers but will it save them money?
But will it ultimately save shoppers money? This is the question, after the Government revealed its proposed surcharge ban this week. The Retail Payment System (Ban on Surcharges) Amendment Bill is expected to be introduced by the year's end, and the change made by May. The proposed ban follows the Commerce Commission's decision to reduce bank interchange fees that businesses pay to accept credit card payments. This change is expected to save businesses about $90 million a year. Surcharges at the till allow businesses to recoup additional costs associated with providing certain payment methods, such as credit cards and contactless. New Zealanders are paying up to $150m in surcharges every year. The Government says this includes excessive surcharges of up to $65m. Commerce and Consumer Affairs Minister Scott Simpson describes them as 'a hassle and an unwelcome surprise' for shoppers at the till, and says consumers will be able to 'shop with confidence knowing how much they will pay for their purchases'. The Commerce Commission will oversee enforcement. Consumers will be entitled to a refund if a business applies a surcharge. Consumer NZ welcomes the change, describing it as 'a no-brainer'. Retail NZ chief executive Carolyn Young is pleased changes are being made but warns that retailers will continue to face costs to accept debit and credit card payments and 'these costs will likely be added to product prices in future'. Hospitality New Zealand agrees, saying the move could result in higher prices because margins are tight. There was strong criticism from Dairy and Business Owners Group chair Ankit Bansal, who argues the proposed changes unfairly target small retailers instead of fixing the real problem – the banks. 'The reality is that large retailers enjoy significantly lower banking fees, while small businesses – with no power to negotiate – are left paying inflated rates.' The Government deserves praise for tackling the wider issue of costs associated with people using certain credit cards and contactless cards in shops. The reduction in interchange fees will help businesses. The surcharge ban will be positive for consumers and mean a more transparent process. But it's a fair bet that most businesses, especially those under pressure, will be unable to absorb any extra cost. Some consumers may well ultimately end up paying higher product prices at the till to compensate. Sign up to the Daily H, a free newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
an hour ago
- RNZ News
Property investors: It's not time to break up yet
Investors buying older properties might do them up which leads to economic activity in terms of providing work for builders and trades people, Jeremy Williamson says. Photo: RNZ / REECE BAKER Calls for New Zealanders to break up with property investment and focus instead on investing in more productive assets such as growth companies are missing the point, says an economist at one property investment firm. Jeremy Williamson, head of private wealth and markets at Craigs Investment Partners, said there was momentum building for a move away from the country's "love affair with property and property investing". "New Zealand is always going to have an affinity with property investment but there are so many benefits for us as a country if we can turn the dial away from it, into more productive parts of the economy." He pointed to the returns that were possible from investing in the sharemarket. "If you put $100 into a New Zealand house 30 years ago it would be worth nearly $600. If you put it in New Zealand shares, it would be $1100." But Ed McKnight, property economist at Opes Partners, said that was ignoring the power of leverage. Because people only put a deposit in to the purchase of a property, and borrow the rest, it can mean bigger returns. "If you compare a standard property index or prices to shares, shares increase in value faster than houses. But houses can help you grow your wealth faster than shares… it comes down to the debt, the mortgage. "It's a double-edged sword. Whenever you use a mortgage to invest, whether in a house or business it makes your returns larger, which can either be good if the value increases, or it can be bad if the value decreases. "That's the reason why, if you put a 20 percent deposit into a house and your house value goes down by 20 percent you've lost your entire deposit at least on paper until the asset recovers in price. "But if you put 20 percent into a house and the value goes up 20 percent, you've doubled your money. I call it the mortgage magnifier effect. The bigger the mortgage you use, the larger your return compared to the market return. "So property doesn't go up in value as fast but it can be a better wealth builder because you can borrow against it." He said it was also not accurate to say that property was not a productive investment. While it would not grow the economy if an investor bought a house and sat on it, he said, people who were buying new were encouraging economic activity. "The builder or developer is taking an older house and building a new one, it drives the economy forward. You have people building houses and nice, new, warm dry homes for tenants. "Even if you are buying old properties, many investors do them up. That's economic activity, taking something that might be a bit run down and you're improving the quality of the New Zealand housing stock, you're spending money at Bunnings or Mitre 10, it means plumbers and electricians get jobs. It's not true to say property investors don't add anything to the economy." He said simply buying and selling existing shares did not add to the economy, either. "Because buying a share in a company doesn't mean that the money goes to the company for investment. If you buy a share in NZME, the money goes to the person I bought the share off, not the company itself. "Even in IPOs the money sometimes goes to the founders. Only a small fraction of My Food Bag's IPO was earmarked for investment. A large part went to paying out the founders. So share investments aren't always as 'productive' as the average reader might think. "Though if more people invest in shares, then there is more money available when companies do raise money for further investment. Similarly, property is more productive than non-property people give it credit for. Many investors don't just buy and sell houses. They build new ones, or do them up. This improves the housing stock in New Zealand and does contribute to higher GDP and a higher standard of living." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
