Ormat decides not to build more geothermal

[ironyak]

Interestingly, the law would make the changes retroactive just enough so that it would nullify the County's night-time drilling ban and possibly get PGV out of its pending lawsuit from PPA. Can't say that Inouye doesn't go out of her way to make (certain) constituents happy.

http://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=2535&year=2016

[kalakoa]

It's a trend, apparently;

http://www.hawaiitribune-herald.com/news...s-hu-honua

http://www.westhawaiitoday.com/news/loca...l-projects

I must have missed the part where oil will stay cheap forever, and all the various "protectors" have a great roadmap for economic growth and prosperity to replace all the project shutdowns and job losses. Because the aina.

[Shonuff]

I guess all of you lamenting the demise of the old electric power paradigm will really miss those powerlines and the energy that was wasted to keep them active at all times.

[opihikao]

FYI:

Report: PGV’s Power Output Down

By TOM CALLIS Hawaii Tribune-Herald


Is the state’s only geothermal power plant losing steam?

Production at Puna Geothermal Venture, which contracts with Hawaii Electric Light Co. to provide up to 38 megawatts of renewable energy, averaged only 24.7 megawatts during the state’s last fiscal year, according to a report to the Legislature.

The Department of Land and Natural Resources provides the document as part of an annual update on the distribution of geothermal royalties and the prospect of creating an interisland power cable. Regarding the latter, there has been no progress, the report says.

But noteworthy is the production level at PGV, which brought its sixth production well online near the end of that fiscal year, running from July 1, 2014, to June 30, 2015. The report says PGV completed maintenance and repairs on two wells during that time period, which likely affected energy output.

With the new well online, the plant on Kilauea’s East Rift Zone outside Pahoa still remains below capacity.

Mike Kaleikini, senior director of Hawaii affairs for Ormat Technologies, which operates PGV, said the plant is now producing 30 megawatts.

“There’s still more work to be done overall,” he said, when asked how the plant will increase production, and whether more wells will be needed.

“We got some plans in the works,” Kaleikini added, without providing specifics. “We don’t have any firm plans.”

He said PGV intends to host a community meeting later this month to discuss the status of the plant and future prospects.

Kaleikini said Ormat remains committed to the location.

“We’ve been here over 20 years,” he said. “We are in it for the long haul.”

A “resource assessment” also will be completed shortly that could shed light on the production issues, he said.

“It will give us a firm handle … tell us exactly what’s happening,” Kaleikini said.

The last assessment occurred as part of the plant’s 8-megawatt expansion, with help from the American Recovery and Reinvestment Act of 2009.

Ormat is facing a lawsuit in federal court alleging that it defrauded the federal government of $13.8 million in stimulus funds for the expansion, which increased its capacity to 38 megawatts. The company denies the claim.

HELCO President Jay Ignacio said PGV doesn’t get penalized for the low output, but that does result in lost revenue for the plant.

The utility has to rely more on fossil fuel generation when renewable energy production is lower, he said.

Ignacio said a meeting is also in the works with PGV officials to discuss ways for the plant to return to full capacity.

According to the DLNR report, PGV paid $1.7 million in geothermal royalties last fiscal year. Of that, Hawaii County received $535,708 and $357,139 went to the Office of Hawaiian Affairs.

The remaining 50 percent went to the state.

On average, geothermal provides more than 20 percent of Hawaii Island’s electricity, DLNR said.

Email Tom Callis at tcallis@hawaiitribune-herald.com.


http://hawaiitribune-herald.com/news/loc...utput-down


Thoughts?

(I have the utmost respect for Mike Kaleikini. He is straightforward and candid. He does care. He is not the problem, if there is one.)

JMO.

[pahoated]

PGV is not a part of HELCO, it is a contractor to HELCO. When HELCO made the contract with PGV, the net feed rate for PGV was over 32 cents/kw-hr. That is what HELCO had to pay PGV to get electricity from them. Now, burning bulk oil is down to 16 cents/kw-hr and HELCO owns those plants. The Puna plant easily supplies the max load needs of Puna plus feeds the rest to Hilo. The geothermal power is mostly to eventually replace the Hilo oil plant. It means a lot more profit for HELCO to run its oil-fired plants during these pre-peak oil years. It makes economic sense to convert a few of the main oil-fired plants to natural gas turbines which will better regulate varying loads. In the short term, slowing down on contracting higher cost alternative energy power producers means a lot more coin in Ignacio's pocket.

"Aloha also means goodbye. Aloha!"

[pahoated]

SB 2535 passed and will be awaiting the governor's signature when this legislature ends. It makes the state the sole authority of all geothermal resources development. Once this bill gets signed, the county will have to remove the entire Geothermal section out of the county code. Ruderman tried to introduce his usual pack of geothermal agenda and they all went to committee, where they will die. He also spoke against this bill for over 20 minutes.

"SB 2535
Clarifies that the regulation of geothermal resources development and geothermal resources exploration is reserved to the State unless delegated to the counties by statute. Requires the lessee of a mining lease to comply with all water and air pollution control laws, relating to building, grading, and flood control codes. Requires the rules of the board of land and natural resources regarding mining operations, geothermal resource development, and geothermal resource exploration, including drilling conditions and restrictions, to be uniform throughout the State."

"Aloha also means goodbye. Aloha!"

[kalakoa]

Requires the lessee of a mining lease to comply with ...

I wonder if this applies to the mining operations in HOVE which recently argued County permit issues?

[ironyak]

What's ironic is that the bill was originally written to be retroactive to nullify the county's night-time drilling ban (and provide an out for PGV in their current lawsuit with PPA), but now the bill won't take effect until 2050 if passed. PGV better hope to solve their lawsuit or every new well drilled for the next 34 years could be quite expensive.

[Guest]

Hard to believe this project or bioenergy facility has now been terminated, it was just at the top of the states list 6 months ago.

http://www.washingtontimes.com/news/2015...-top-spot/

Wind and solar could play a larger alternative energy role in our near future. Especially now that Ormats future geothermal plans and this once promisingly growing project have now been temporarily terminated.

[leilanidude]

No alternative energy system will survive in Hawaii due to the ridiculous number of taxes, fees, royalties, regulations and permits, despite the state's determination to make renewable energy a priority.