Ormat has withdrawn from contract negotiations to provide 25 megawatts of additional geothermal energy on Hawaii Island, Hawaii Electric Light Co. said Wednesday.
Ormat has withdrawn from contract negotiations to provide 25 megawatts of additional geothermal energy on Hawaii Island, Hawaii Electric Light Co. said Wednesday.
The negotiations were part of a Request for Proposal process, a competitive bidding framework initiated to add lower cost, firm, renewable geothermal energy to the island’s energy portfolio.
HELCO had selected the company on Feb. 24, 2015, following a review of the bids submitted. The company said the selection was made based on Ormat’s ability to meet price levels and performance standards, and began contract negotiations.
The contract negotiations with Ormat were for the 25 -megawatt facility known as the Moana Geothermal Project. The exact location of MGP had not been disclosed, though an Ormat spokesman has said it would be built on Kilauea’s East Rift Zone in Puna. The 38MW PGV also is located on the rift zone outside Pahoa.
HELCO first sought up to 50 MW of additional geothermal power through the process, but cut that in half after none of the bidders proposed projects in West Hawaii.
“Our primary goal for the RFP was to obtain geothermal energy that could significantly lower the overall cost to our customers while maintaining overall system reliability,” said Jay Ignacio, HELCO president. “We’re disappointed that Ormat decided not to proceed to develop the project.”
HELCO said it will continue its efforts to increase cost-effective renewable energy, and is including geothermal in its analysis of potential future resource options as part of the update to its Power Supply Improvement Plans.
Currently, more than 47 percent of electricity on Hawaii Island is generated from renewable resources, including hydro, wind, distributed solar, and geothermal, HELCO said.