WELLINGTON (Reuters) - State-owned electricity generator Mighty River Power said on Thursday it planned to build a 132 Megawatt geothermal power station to meet growing demand.

A final decision on building the plant, to be located at Rotokawa near Taupo in the North Island, would depend on completing procurement contracts, said Mighty River chairman Carole Durbin.

"In providing 132 Megawatts of generation capacity, it will be the second-largest geothermal station in New Zealand," Durbin said in a statement.

The plant would cost NZ$450 million ($360 million) and take about two-and-a-half years to build.

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Mighty River Power said it would begin generating from its NZ$300 million, 90 Megawatt geothermal station at nearby Kawerau before the end of this year, producing one-third of the electricity needs for the Bay of Plenty region.

Mighty River Power competes against fellow state-owned generators and retailers, Meridian and Genesis Energy, as well as listed companies Contact Energy Ltd and TrustPower Ltd.

The New Zealand government is preparing to introduce a carbon emissions trading scheme and has set a target of 90 percent of electricity generated from renewable sources by 2025.

(NZ$1=$1.25)

(Reporting by Adrian Bathgate)