Haberler

Hawaiian utility puts geothermal on hold planning modified RFP

Power lines in Hawaii (source: flickr/ Quinn Dombrowski, creative commons)
Alexander Richter 12 Mar 2014

Hawaii Electric Light Co. (HELCO) is now putting geothermal expansion plans on hold following critical voices from an independent observer, but aims to modify the RFP with revised operational and technical requirements.

In yet another rather strange development, Hawaii Electric Light Co. (HELCO) is now putting its geothermal expansion plan on hold.

This follows news on increasing critical voices on the process of a request for proposals with no outcome, as well as a very outspoken and critical letter by a State Senator from Hawaii. We reported about this last week.

Boston Pacific as external and independent observer also criticised the utility for lacking sufficient planning, saying that “HELCO should study whether there’s a need for the project and identify alternatives.”

That’s prompting HELCO to wait until a power supply improvement plan is completed before moving forward with the effort to seek up to 50 megawatts of additional geothermal power. The plan is expected to be completed by April 21.

In a comment by HELCO it was said that the general plan was that the RFP was aimed at “significantly reduce the cost of electricity to its customers while maintaining Hawaii Electric Light’s system reliability.”, which sounds strange in light of having just signed another PPA with a biomass company at a rate higher than that offered by bidders for the geothermal RFP.

HELCO plans to “modify the RFP to include a best-and-final-offer phase and revise operational and technical requirements, in addition to other changes.

In a statement to the Tribune-Herald, HELCO President Jay Ignacio said, “We are seeking low cost energy that also ensures reliability and also is sensitive to community and environmental concerns. We believe we can get that through a geothermal facility. Completing the Power Supply Improvement Plan will give us an opportunity to clarify for the PUC, the Independent Observer, and bidders what we are seeking with the RFP.”

One can only hope that things will turn around, but following the rather awkward RFP and the management thereof by HELCO, one can remain sceptical.

Source: Hawaii Tribune and Herald