Pacific Business News: Nearly Completed Hu Honua Plant Continues to Await PUC Approval
Jun 13, 2020
By Megan Fernandes
The Honua Ola Bioenergy’s Hu Honua plant is still awaiting Public Utility Commission proceedings, despite the
$336 million plant being nearly completed.
In June of 2019, the state Supreme Court annulled the original amended power purchase agreement between Hawaiian Electric and Ola Honua Bioenergy, creating a setback for the plant as it goes through the regulatory process again with more consideration given to reducing greenhouse gas emissions, Pacific Business News previously reported.
The construction of Hu Honua’s 21.5-megawatt facility is nearly complete and could commence operations as early as this year. This, however, is dependent on PUC approval of the amended and restated PPA between Ola Honua Bioenergy and Hawaiian Electric, following its consideration of the reduction of GHG emissions and evidentiary hearing.
In response to Honua Ola Bioenergy representatives from Honolulu-based Yamamoto Caliboso law firm urging the PUC to hold a scheduling conference on this docket, the PUC responded in late May that there may be a delay, with an order on the docket forthcoming “as soon as reasonably possible” on the next steps.
The PUC cited a delay in the docket due to Hawaiian Electric Companies’ phase two request for proposals, and the “drastic reshaping of the economic landscape in the state over the past few months.” The PUC states that the commission needs “necessary time to reflect on the current set of renewable energy projects under consideration in its various ongoing dockets.”
The letter from the PUC stated: “This is in particular recognition of the fact that any decision the commission makes on one project for Hawaii Island will necessarily have effects on other, future commission decisions, and the fact that it is crucially important at this time to ensure that the commission’s decisions reflect the best long-term choices for the state’s recovering economy, clean energy transformation, Hawaii Island’s grid, and Hawaiian Electric [Companies’] ratepayers.” In a letter to the PUC, dated June 10, the power plant’s representative, the Yamamoto Caliboso law firm, shared the company’s concern regarding the delay.
The letter states that: “Hu Honua agrees the need to support the state’s recovering economy, clean energy transformation, Hawaii Island’s grid, and [Hawaiian Electric] ratepayers, as well as prioritize high impact activities in ready to implement clean energy development that can support and expand clean energy job opportunities and economic recovery, is especially important now more than ever.”
In mid-March the commission stated it intended to prioritize actions and requests that would aid the state in achieving near-term targets and longterm transformation of the energy system, that could promote economic recovery and would be ready to implement. During the pandemic, the commission invited proposals and new programs that could support and expand clean energy job opportunities. The Yamamoto Caliboso law firm also urged in its June 10 email that of other RFP projects, such as Hawaiian Electric’s recent solar-plus-storage projects, many will not be available to come online this year.
“Hu Honua is not a replacement for variable renewables; instead, it is a firm generation replacement for existing fossil generation,” Honua Ola Bioenergy representatives said in the letter. “Hu Honua can co-exist with other existing and future renewable energy resources … The project will have a significant role in the revitalization of Hawaii Island’s agricultural sector and will enable our state’s renewable energy goals to be achieved in parallel with agricultural activities which utilize, process and harvest commercially-grown local crops.”
Pacific Business News, Jun 13, 2020 : https://www.bizjournals.com/pacific/news/2020/06/13/the-honuaola-bioenergys-plant-awaits-puc-input.html