New Zealand has set out to burnish its clean, green image by becoming Asia Pacific's first developed economy to stop using fossil fuels to generate power, although the pitfalls encountered by a Maori iwi, or tribe, may signal trouble ahead.

The 3,000-member Ngaati Kea Ngaati Tuara iwi in Rotorua, when switching to renewables, found local geothermal sources were not hot enough to generate electricity.

So the tribe set up small hydro units for its meeting ground and dairy farm, but the units struggle to operate during floods and to produce enough power at peak demand, said project manager Eugene Berryman-Kamp. A battery could store energy for periods of high use, but there is currently "no appetite" to invest the more than $10,000 needed, he said.