An illustration of the planned new Tauhara geothermal power station to be built by Contact Energy. Photo: Supplied
Contact Energy's Tauhara geothermal power station has struck problems, delaying its commissioning by six months.
The problems with underperforming steam field valves and a liquid handling system have been found during commissioning tests, and will require further design and modification of part of the plant.
"While this outcome is not what we were targeting when we entered commissioning, this is the stage of any geothermal project when such unknowns will be brought to the fore and mitigations applied," chief executive Mike Fuge said.
He said every effort would be made to minimise delays, but power generation would not occur until the third quarter of 2024, instead of the original first quarter target.
The modifications would cost up to $40 million, but the company still expected operating earnings for the year of $600m, Fuge said.
"Tauhara remains a stand-out renewable energy project and will be a fantastic long-term asset for New Zealand, generating attractive returns for Contact's shareholders."
The Tauhara field, near Taupō, will generate 174 megawatts of power and run 24 hours a day to provide base load power, at an overall cost of $920m.
The plant was already running behind schedule and over budget because of technical issues with the field and the effects of the pandemic.