Hawaii Electric Light Co.’s proposal to expand geothermal energy production on Hawaii island took another step forward Friday after the utility submitted to regulators the final guidelines that prospective developers of geothermal projects will have to follow.
HELCO, a subsidiary of Hawaiian Electric Co., in November began the process to select bidders to supply up to 50 megawatts of geothermal generating capacity. That would be in addition to the 38 megawatts already provided to HELCO by Puna Geothermal Venture, the state’s sole geothermal plant.
The "request for proposals" HELCO filed Friday with the Public Utilities Commission lays out specifications for the project and what potential developers will be required to deliver. Once the final RFP is approved by the PUC, developers will have 60 days to bid. HELCO officials said they expect to select a bidder or bidders by August or September.
"This is a significant next step toward adding more renewable energy and lowering costs for our customers," said Jay Ignacio, HELCO president. "As an important part of the process, we must ensure any project thoroughly address environmental and cultural concerns from our community," Ignacio said in a news release.
The PUC received eight public comments on the draft RFP issued in November, including a six-page letter from Sen. Malama Solomon (D, Kaupulehu-Waimea-North Hilo) expressing a number of concerns about the plan. An aide to Solomon said the senator had not yet had a chance to review the lengthy document to see whether HELCO made any changes in response to her initial concerns.
In her letter, Solomon said the draft RFP, among other things, did not adequately address the need for culturally sensitive development models and did not "support or require that HECO transform or upgrade its old and outdated grid." She also said the draft RFP was written to favor a potential bid by Puna Geothermal Venture.
Other commenters included officials from Innovations Development Group and Chevron Energy Solutions, two entities that indicated they planned to submit bids. Puna Geothermal Venture did not submit any comments. PGV is owned by Nevada-based Ormat Technologies Inc., a subsidiary of Israeli-based Ormat Industries Ltd.
Geothermal has the potential to deliver electricity at rates lower than other forms of renewable energy. A single megawatt of geothermal power can provide enough power to supply the energy needs of about 650 Hawaii island homes.
One of the main advantages of geothermal compared with solar- and wind-generated energy is that the steam from the geothermal wells produces consistent power similar to that of a traditional oil-fired power plant.
Solar power is available only during daylight hours, and even then the electrical output of photovoltaic panels can vary, depending on cloud cover. Similarly, the energy produced by a wind turbine can vary with wind speed.
