« Charges filed against Tribune-Herald | Main | Yet another Puna real estate story »

Energy article has a hole as big as a geothermal well

Maybe you saw this AP story on alternative energy in Hawaii -- it was in the Tribune-Herald, Star-Bulletin and Advertiser over the weekend -- and were left as frustrated as I was after reading it through.

After mentioning all the problems with unreliable sources of alternate energy such as wind, water and solar, it mentions that geothermal is a reliable source of clean energy that is already providing a substantial amount of electricity to the Big Island. But then the story skips right back to the problems with the unreliable sources without ever mentioning geothermal again. If you're like me, you were left muttering over your oatmeal because  the story never explains why we aren't developing more geothermal energy given the fact that its naturally renewable and eliminates so much imported oil.

So I had to go looking elsewhere and found the Puna Geothermal Venture site. PGV says it currently produces about 20 percent of the island's energy and plans to increase its capacity from 30 to 38 megawatts. (This U.S. Department of Energy site says PGV produces almost 25 percent of the island's energy). PGV also says its Pohoiki plant also has the potential to produce up to 200 megawatts of electricity which would well exceed the Big Island's current total demand for electricity, however the Public Utilities Commission wouldn't likely allow the island's entire energy supply to come from a single source. But with Hawaii being the most dependent state in the nation on expensive imported fuel oil, you have to wonder why PGV isn't being encouraged to expand its capacity further (insert your Big Oil conspiracy theory right here).

While looking around I also found an interesting recent report on the potential for using geothermal heat directly (not to produce electricity) to enhance the area's agricultural industry and create local jobs. This Hawaii County research and development study released in February describes a geothermal enterprise park that could be used for greenhouses, pasteurization of potting media, lumber kilns and biodiesel production as a "marginally feasible" project from an economic standpoint. At an estimated and relatively cheap cost of $12.5 million to build, I wonder too why this project isn't being pursued for Puna.

The Council could just lop a small wing off the West Hawaii civic center and come up with plenty of dough for a project such as this, which sounds like a tremendous idea for a valuable economic stimulus in lower Puna.


Posted on Monday, April 9, 2007 at 08:57PM by Registered CommenterHunter Bishop in , , , , | Comments8 Comments

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (8)

Hunter,

To throw in one more statistic, Warren Lee told me not too long ago PGV's 30 MW actually accounts for only about 11 percent of the island's 270 MW capacity today, so I think both the DOE and the PGV numbers you cite are out of date. I guess PGV's share of the total juice drops over time with the addition of other types of generating capacity, such as the Keahole expansion.

Which tends to support your argument, of course.

I don't get the impression that the PUC's concerns about over-reliance on a single source are what holds PGV back. PGV needs to strike a deal with Helco to get Helco to buy what PGV produces, and Helco says it doesn't need the extra power right now. The fairly new Hamakua and Keahole power plants together added 100 MW of capacity (I know this because I had to run a correction on that very point, arrgh), and it will take the Big Island a while to outgrow that new capacity. Meanwhile, Helco also has near-term plans to expand Keahole's capacity still more by capturing waste heat from the new turbines.

To put it another way, we don't expand PGV because Helco and the independent power company in Hamakua made investments that commit us all to another 15 years or so of getting the vast majority of our power by burning oil and naphtha. They did this with the blessings of the PUC.

I sure hope those guys know what they're doing.




April 10, 2007 | Unregistered CommenterKevin Dayton
Not Big Oil conspiracy, but Big Utility conspiracy: PGV and other alternate / sustainable suppliers don't sell their power direct to subscribers. They sell to HELCO, which owns the distribution grid (i.e., the wires). HELCO buys such energy at (I believe) $.17 / kwH and sells it to subscribers at what was (effectively) around $.33 / kwH (before the just-approved rate hike).

Additionally, a few months ago it was reported (I think in the Star-Bulleting) that PGV was interested in _doubling_ capacity but HELCO nixed such an expansion, saying that there was enough capacity on the Big Island (i.e., big fossil-fuel generators at most-expensive-in-the-country rates).

Meanwhile, HELCO drains money back to HEI under the guise of consulting costs, thus appearing on the books as financially marginal while actually being a cash-cow.
April 10, 2007 | Unregistered Commenteranonymous
Kevin is correct with his mention of the need for independent producers to obtain a power purchase agreement with HELCO. While HELCO is required by law to negotiate, there is no guarantee an agreement will be reached, especially when the utility doesn't need the additional capacity. As an example, the new owner of the old Hilo Coast Processing Co. has apparently made no progress on its PPA with HELCO even though it claims it has plans to eventually switch from coal to biomass (residents of the area are also fighting the plant's reopening tooth and nail). PGV and HELCO have been negotiating for years on an expansion beyond 38 megawatts without results.

And it should be mentioned that geothermal energy has not always been as reliable as it appears at the moment. Because of production problems, PGV was unable until recently to meet its contractual requirement of 30 megawatts, which has cost the company many thousands of dollars in penalties. The problems include a partially blocked well and the fact that the supply of steam from its wells has diminished over time more quickly than expected. And that doesn't count numerous leaks and the major blowout (in 1992, I believe) that resulted in part from PGV initially underestimating the corrosiveness of Hawaii's steam resource.
April 10, 2007 | Unregistered CommenterDave Smith
The interesting commentary about HELCO and the PUC and HELCO'S not needing anymore power do to the Keahole and the Hamakua power plants coming on line recently. The PUC mandates that HELCO shall negotiate with non Helco power providers for contractual agreement to supply the power and Helco paying top dollar for the use of the power on their grid. The PUC, does not however mandate that Helco has to purchase the power, only that they negotiate in good faith.

So, enter the Hawaii County"s solid waste to energy project and any company that is selected to build and run the incinerator and the taxpayers $40 to $50 million handout. What would happen if Helco didn't give this new waste to energy plant a contract to provide power. The operator of the waste to energy plant would then charge the users of the plant (us) a much higher tipping fee. Thus the booddoggle. We the taxpayers, approve of the incinerator and pay dearly for it, then we get a rude awakening when the cost to each taxpayer is higher then previously calculated. My point is, don't be fooled by the promise of a private entity, wishing to control the waste stream for profit, then pulls the carpet out from under the paying public and reneges on the promise of a true waste to energy plant. Think about it.
April 10, 2007 | Unregistered CommenterHPP Boy
If I am not mistaken, a larger plant with more generators at PGV might mean more noise for Leilani Estates. After that blowout in 1992, many Leilani Estates residents would complain of how loud the generators were at the PGV plant. I believe the Association even got funds from PGV to buld a tennis court as a way to compensate for the noise. Yes, they put up the King Kong walls to dampen the noise but the walls may not be able to deal with more generators.
Hunter, don't you live in Leilani Estates? Actually, doesn't Leilani Estates sit right over the active East Rift Zone?
April 10, 2007 | Unregistered CommenterMalama pono
Re: geothermally produced electricity, according to the group researching alternate energy for the Puna CDP, Helco has no plan to expand geothermal use till 2025. The Puna CDP reviewing alternate energy apparently felt that geothermal was not reliable, citing that from May 2003 to May 2004, PGV produced only 5 megawatts due to well failures. So if anyone wants to push geothermal in the Puna CDP, you'd better give your input to the Puna CDP Steering Committee, which is meeting at 5:30 p.m. next Thursday, April 19, at Keaau Community Center.

I am curious about something that was in effect when I first started reporting on geothermal development way back when (during the Carter administration!). Federal law tied the cost of electricity from geothermal to the cost of a barrel of oil. Does anyone know, is that still the case?

All you lawyer types, would there be any basis for a class action suit against the PUC for its failure to uphold the public's interests over HEI? Is there any federal legislation pushing for alternate energy over fossil fuel-produced energy? If there isn't, wouldn't now be the politicly expedient time to push for such legislation?

Jes wunderin'

Frankie Stapleton

April 11, 2007 | Unregistered Commenterfkstapleton
And while we're talking about media, I wonder if anyone at the Advertiser knows that it ran this AP story twice: on Sunday, and then a slightly shortened version again on Tuesday. It wasn't the A's finest editing moments for several reasons: The Tuesday version was accompanied by a photo of PGV's Barry Mizuno with a correctly spelled last name, unlike the "Mizumo"s in the copy in both the 4/8 and 4/10 editions.

Sorry to snipe, Kevin (I know you had nothing to do with it); chalk it up to occupational hazard.
April 11, 2007 | Unregistered CommenterDave Smith
Golly, this is like a Tribune-Herald alumni gathering.

Dave, no comment on your observations. What the hell can I say?

Frankie, I don't know about federal law, but Warren Lee says Helco's contract with PGV tied the price that Helco pays for PGV power to the "avoided cost" of Helco producing the power itself. In English, Helco's price for PGV power is indeed tied to the price of oil.

Warren also told me MECO (last year, maybe?) cut a new first-of-its kind contract with a windfarm on Maui where the price MECO pays for power is NOT tied to the price of oil, so it can be done.

There is a state "renewable portfolio" law that mandates that Hawaii electric utilities get 20 percent of their power from renewable sources by (I think) 2020. There was some concern that maybe HEI could wriggle out from that requirement by increasing efficiency (subsidizing energy efficient buildings, etc.) and counting those energy savings toward the 20 percent requirement, but I'm not sure how that was resolved.

We should have an energy beat staffed by an expert. This stuff is complex and really, really important.
April 12, 2007 | Unregistered CommenterKevin Dayton

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.