Contact Energy's Te Mihi power station (file photo). Photo: Contact Energy
Contact Energy will build a new 101 megawatt geothermal plant at Wairakei for about $74 million.
Te Mihi Stage 2 was a first step in replacing its 1950's-built Wairakei geothermal power station, the company said.
It will extend the running of the Wairakei geothermal power station until mid-2027, when Te Mihi Stage 2 was expected to be online.
A second phase of development, Te Mihi Stage 3, was expected to come online by mid-2031, subject to a final investment decision.