Hawai’i Electric Light Selects Ormat as New Geothermal Provider
Ormat has been selected by Hawai’i Electric Light as its newest geothermal provider. The company, who was chosen following a competitive bidding process, will contribute 25 MW of geothermal energy for the Big Island.
Now that a provider has been selected, the utility company will begin contract negotiations with Ormat and submit the agreement to the Public Utilities Commission for approval.
“We have continued to pursue ways to increase our use of renewable energy and lower costs to our customers, while also ensuring reliable service,” said Jay Ignacio, Hawai’i Electric Light president. “Ormat was selected based on numerous criteria, including attractive pricing, technical design and capability, financial soundness, as well as commitment to resolving all environmental issues and to working with our Hawai’i Island communities.
Geothermal technologies provide renewable, controlled dispatchable energy and firm capacity that allows Hawai’i Electric Light to schedule and control output from the geothermal plant to its island-wide grid.
The support of energy sources, like geothermal, assist Hawai’i Electric Light with the integration of intermittent renewable resources, like wind and solar, while reliable service is maintained for Big Island customers.
In early November 2012, a draft of the Geothermal RFP was issued. During the same time, PUC selected an independent observer, Boston Pacific Company, to monitor and advise during the bidding process to make sure it was fair and followed the PUC framework for competitive bidding.
Hawai’i Electric Light says that over 47 percent of energy on the Big Island is generated from renewable resources, including hydro, wind, distributed solar, and geothermal.