Hawaii Electric Light Co.’s selection of Ormat Nevada Inc. to build the next geothermal power plant in Puna received a positive recommendation this month from an independent observer.
The Boston Pacific Co., which is overseeing the geothermal selection process, wrote in a May 19 letter to the state Public Utilities Commission that it approves of the selection of Ormat into the “final award group” since it meets the pricing threshold of 12 cents per kilowatt hour and other criteria.
Of the five companies to submit best and final offers, Ormat was the only one HELCO selected for the final group, and the utility is currently negotiating a proposed contract with the company for a 25-megawatt facility known as the Moana Geothermal Project.
Ormat Nevada is a subsidiary of Ormat Technologies, which owns Puna Geothermal Venture, the only existing geothermal power plant in the state.
The exact location of MGP has not been disclosed, though an Ormat spokesman has said it would be built on Kilauea’s East Rift Zone in Puna. The 38-megawatt PGV also is located on the rift zone outside Pahoa.
One other bid met the pricing threshold, according to Boston Pacific.
“Out of the two eligible (best and final offer) bids, the Moana Geothermal Project had the highest overall score based on the (request for proposals’) methodology for price and non-price criteria,” Boston Pacific said.
If operated as planned, the power plant would “represent a cost-effective resource for Hawaii,” the company added.
If built, the Puna region would produce 63 mgw of geothermal power. HELCO has said the additional power would help it reduce its dependence on fossil fuels to produce energy.
Boston Pacific had been critical of HELCO’s geothermal RFP process for what it called deficiencies in resource planning.
“As we understand it, there has been no consistent integrated resource planning to support the assumption of the RFP,” the company said.
HELCO’s power supply improvement plan, intended to address such issues, is pending before the Public Utilities Commission.
“Such planning issues can lower bidder confidence in the RFP process no matter how well an RFP is designed or executed,” Boston Pacific said.
HELCO first sought up to 50 mgw of additional geothermal power through the process, but cut that in half after none of the bidders proposed projects in West Hawaii.