Geothermal power aims to resume this year
by Kristen Okinaka | Jan. 29, 2020
In the aftermath of the Kilauea volcano eruption in May 2018, the Puna community continues to recover and rebuild.
Lava damaged or destroyed more than 900 utility poles and other electrical equipment. About 935 customers lost power and more than 700 homes were destroyed in Leilani Estates, Lanipuna Gardens and Kapoho. For months, major roadways and communities were covered by lava — some still are.
But our community is resilient. Since the eruption, Mother Nature created new land, black sand beaches, and thermal ponds. Major highways reopened and displaced residents returned home or found a new one. Electrical service was restored in most communities. By the end the year, geothermal energy will once again feed power to the electric grid.
Puna Geothermal Venture (PGV), which began operations in 1992, has been out of service since the eruption. Although the facility was not damaged, a switching station and two transmission lines that connect PGV to the grid were destroyed. At the time, the independent power producer supplied 31 percent of the electricity on Hawaii Island.
Hawaiian Electric’s Hawaii Island subsidiary filed an application with the Public Utilities Commission (PUC) to rebuild two transmission lines that would reconnect PGV to the grid. Assuming the transmission line construction is approved, and other repairs are completed on schedule, PGV expects to resume operations this year. The Commission has scheduled a public meeting about this application for Wednesday, Jan. 29, at the Pahoa Community Center.
Hawaiian Electric and PGV also reached agreement on an amended contract that will significantly lower electric bills on Hawaii Island, reduce greenhouse gas emissions, and expand the island’s renewable portfolio standard to nearly 70 percent. Customers like me are looking forward to the approval of the amended power purchase agreement currently under review by the PUC.
An added benefit of the new contract is the upgrade of the 38-megawatt geothermal facility to produce an additional 8 megawatts of firm, lower-cost renewable energy, further reducing bills and the use of fossil fuels to generate electricity. Once the upgrade is completed, typical residential bills are expected to drop about $7.50 a month starting in 2022 and close to $13 a month in 2023, based on current prices.
An important element of the amended contract is that the rate paid by the utility to PGV will be fixed and no longer be linked to the price of oil. By eliminating the volatility of oil prices from the rate paid to PGV, the new fixed-price contract will ensure that bills are more stable. This new pricing arrangement follows guidance provided by the PUC.
Geothermal remains an important contributor as we continue to seek new renewable generation to meet the state’s goal of 100 percent renewable energy by 2045. Getting PGV back online, and adding even more capacity, will help lower and stabilize bills for all customers on Hawaii Island.
Kristen Okinaka is a senior communications consultant for Hawaiian Electric on Hawaii Island.
