Contact Energy completed a 30-day reliability run for its new Tauhara geothermal plant.

The Tauhara plant, which operated continuously at around 152 MW during the test, is now undergoing final commissioning activities. It was tested at its target capacity of 174 MW.

Contact Energy plans to run the plant at 130-135 MW for the next two months to address vibrations in a section of the steam separation plant. Another geothermal project, the 51.4 MW Te Huka 3 plant, is also on track to become operational in the fourth quarter of 2024.

Contact Energy also plans to decide on a new 100 MW binary plant at Wairakei by the fourth quarter, with a construction target of mid-2027.

Contact Energy expects a boost in its normalised EBITDAF for FY25 to $770 million. It also anticipates an annual dividend uplift of 4 cents per share, phased over FY24 and FY25.