08-26-2013, 03:44 AM
FYI: (*Snipped -More at link)
http://www.civilbeat.com/articles/2013/0...s-remorse/
The promise of biofuels was that they would deliver a locally produced, renewable fuel source. The question is increasingly: at what cost?
As Hawaiian Electric Co. has committed in recent weeks to drive down electricity rates that are three times the national average, there are signs that biofuels may not be able to compete with other energy sources. Yet, the utility could be locked into long-term commitments to buy the fuel at a fixed cost.
What would this mean to consumers? “If electricity prices fall, I suspect we are going to get stuck,” said Robert Rapier, an energy expert and executive at renewable energy company, Merica International. By that, he means stuck paying for fuel that carries a significant premium.
HECO has signed four contracts with local biofuel companies in recent years. Three are being scrutinized by state regulators, and the fourth, for algae biofuel, seems to have stalled.
The Aina Koa Pono contract was rejected by the PUC three years ago because commissioners said the price of the fuel was too high and not in the best interest of consumers. Aina Koa Pono and HECO subsequently negotiated the price of the project down by $125 million, but the fuel from that bill would nonetheless add to customer electricity bills based on current projections for the price of oil.
The PUC could rule on that contract as early as next month, according to Kenton Eldridge, a founder of Aina Koa Pono, who declined to comment further because the matter is still before the commission.
http://www.civilbeat.com/articles/2013/0...s-remorse/
The promise of biofuels was that they would deliver a locally produced, renewable fuel source. The question is increasingly: at what cost?
As Hawaiian Electric Co. has committed in recent weeks to drive down electricity rates that are three times the national average, there are signs that biofuels may not be able to compete with other energy sources. Yet, the utility could be locked into long-term commitments to buy the fuel at a fixed cost.
What would this mean to consumers? “If electricity prices fall, I suspect we are going to get stuck,” said Robert Rapier, an energy expert and executive at renewable energy company, Merica International. By that, he means stuck paying for fuel that carries a significant premium.
HECO has signed four contracts with local biofuel companies in recent years. Three are being scrutinized by state regulators, and the fourth, for algae biofuel, seems to have stalled.
The Aina Koa Pono contract was rejected by the PUC three years ago because commissioners said the price of the fuel was too high and not in the best interest of consumers. Aina Koa Pono and HECO subsequently negotiated the price of the project down by $125 million, but the fuel from that bill would nonetheless add to customer electricity bills based on current projections for the price of oil.
The PUC could rule on that contract as early as next month, according to Kenton Eldridge, a founder of Aina Koa Pono, who declined to comment further because the matter is still before the commission.