A state of the art geothermal power station has been opened near Taupo.

Te Mihi geothermal power station Source: 1 NEWS

Te Mihi was built over three years and cost $623 million and means Contact Energy can now cut back on using its gas-fired stations in Taranaki and Auckland.

Deputy Prime Minister Bill English opened the station in Wairakei.

Te Mihi maximises generation efficiency and minimises the cost of each megawatt of electricity produced. The station continues Wairakei's 50-year geothermal legacy and helps power more than 1,600,000 New Zealand homes.

With two 83 MW steam turbines, the plant has been built to reduce risk and maximise capacity.