Biomass and Solar: A True Economic Comparison
Renewable energy is an issue that must be met with urgency. This issue is especially relevant in Hawaii, where the state has set the goal to reach 100% clean energy by 2045. Hawaii Island is currently making investments in renewable energy, resulting in pricing debates between biomass and solar energy.
The Honua Ola Bioenergy facility, located in Pepe’ekeo, is 99% complete, and ready to generate clean energy for Hawaii Island using biomass. This “FIRM” source of energy is necessary for Hawaii so that our state can meet the renewable energy mandate while ensuring a stable grid.
The PUC states that solar will cost the residents of Hawaii Island 0.08 to 0.12 cents/kWh, and bioenergy from Honua Ola will cost 0.22 cents/kWh. We’re here to tell you that this estimate does not account for the total cost of solar energy with batteries and ignores fundamental economic limitations.
The Financial Implications of Solar’s Limited Capacity
Solar power is a vital source of clean energy, but it is an intermittent energy source and cannot continuously generate electricity. While advancements in solar energy storage have expanded its capabilities, this limited capacity requires a firm energy source to ensure power reliability and quality.
Intermittent energy sources are non-dispatchable without some type of energy storage system, such as batteries. This limitation results in a widespread misunderstanding of the actual cost of solar energy. Many estimates are based on scenarios in which the solar panels are used at full capacity, which is rarely the case. In fact, there are no solar panels that work at 100% efficiency. This means that solar energy costs could easily double when used in a limited capacity.
It’s true that battery storage can be added to solar plants; however, the cost will increase to about 0.25-0.28 cents/kWh. However, this cannot run year-round 24/7. This system only has enough battery backup to run 24 hours straight on both the PV and the energy stored in the battery before they run out of juice. This is why its called “near-firm”, as you only get 24 hours of firm energy for a single day and not 24 hours every day.
Because of this, Solar + Battery is more expensive than Honua Ola’s biomass solution. Even with battery storage maximized, Solar + Battery plants cannot produce enough energy in a day to be available to cover a 24-hour outage. Biomass is “dispatchable” power and can generate as much or as little energy as is required. This is why it is currently the most effective renewable energy replacement for fossil fuels.
The Importance of Job Creation & Stimulating the Local Economy
Solar plants are extremely limited in their ability to stimulate the local economy. Money spent constructing and maintaining solar plants requires imported materials collected and assembled outside of the United States. In 2017, 80% of solar panel infrastructure was imported from manufacturers based in Asia, reducing the potential for American manufacturing jobs.
Once operational, solar plants generate a minimal amount of long-term employment opportunities. A majority of the jobs created are temporary, as they are only needed during the project’s construction.
Modern, carbon-neutral biomass facilities can infuse money back into the community. Instead of sourcing components from overseas, the Honua Ola Bioenergy facility is sustainably powered by local feedstock. This means job opportunities in forestry, agriculture, and transportation. In addition, Honua Ola is projected to generate yearly tax revenue of $1.8 million once operational.
Honua Ola will provide Hawaii Island residents job opportunities outside of tourism, which is needed now more than ever. The facility already employs over 40 skilled-workers and will employ 200-plus additional workers as soon as operations begin. According to a study conducted by Dr. Bruce Plasch, an expert on Hawaii’s economic issues, payroll for these employees will total an estimated $11.1 million annually. This payroll will support about 542 residents living in 227 homes statewide.
We want to do everything in our power to eliminate fossil fuels and protect Hawaii’s renewable energy future. Scientists agree that energy diversification is essential to energy security, so we must prioritize an approach that embraces all forms of renewable energy. With these priorities in mind, it should be clear to the Public Utilities Commission that it must reverse its decision and allow Honua Ola to launch operations. If this decision is not reversed, and solar projects continue to be green-lit, Hawaii Island runs the risk of destabilizing the grid.
The Honua Ola Bioenergy facility is 99% complete and prepared to start sustainably generating renewable energy for residents of Hawaii Island this year.