Ormat decides not to build more geothermal

[kalakoa]

Hawaii is hostile to all business, not just the energy sector.

[pahoated]

The net feed agreement with Ormat for the new geothermal plant (wouldn't necessarily be PGV, it is just a subsidiary) was around 15 cents per kw-hr. This would with some profit for Ormat but PGV was negotiated at 25 cents per kw-hr. Solar panels are still about 25 cents per kw-hr but if HELCO buys more of those, after the purchase and set up cost, can fill growing needs at the fraction of a new powerplant, biomass or geothermal. The power conditioning batteries are getting better, so buying a few banks for every solar farm also pays off for HELCO. In the meantime, just burning their own oil plants is about 16 cents per kw-hr from themselves.

The main trend is any outside investor trying to put in a big engineering project is doomed to fail. Happened with the macademia nut shell to graphite plant up north, $25 million, and all the oil fired electric plants are relics of the plantation era. The biomass plant up in Pepeekeo is going to be a massive disaster. They were getting too bogged down in union trouble, and the investors didn't appear to not know what they were doing technically. With HELCO not needing them to be a power supplier, and terminating with cause, means that is going to collapse soon.

"Aloha also means goodbye. Aloha!"