State regulators have authorized Hawaiian Electric Co. to waive competitive bidding requirements as it moves ahead with plans to buy low-cost solar power from three utility-scale photovoltaic projects proposed on Oahu.
The three projects are among nine that HECO wants to put on the fast track to allow developers to take advantage of federal tax credits that are due to expire at the end of 2016.
The nine projects have a total generating capacity of 240 megawatts, or enough power to serve the energy needs of about 60,000 households. The nine projects would more than double the 221 megawatts of solar generating capacity that has been installed on Oahu since PV panels first began appearing on rooftops a decade ago.
HECO submitted its waiver request to the state Public Utilities Commission for the first three projects in June. The utility submitted waiver requests for the remaining six projects in November, but the PUC has yet to rule on that request.
The PUC emphasized in the ruling that its approval of the competitive bidding waiver should not be construed as approval of the projects themselves. However, the commission did say that it "appreciates HECO’s efforts to obtain more competitive pricing for renewable energy which will inure to the benefit of the utility’s customers."
The first three projects have a combined generating capacity of 33 megawatts. The power would be priced below 17 cents a kilowatt-hour over the 20-year term of the agreement, according to the PUC. That compares with the approximately 22.5 cents per kilowatt-hour HECO pays to generate electricity from all sources combined, the main one being oil.
HECO told the PUC it expects the solar projects to reduce its generation costs by $3.1 million a year, or $62.5 million over the 20-year period. That equates to a reduction of 29 cents a month for a typical household using 600 kilowatt-hours a month, according to HECO.
Neither HECO nor the PUC has disclosed the names of any of the developers. The locations of the projects also have been kept confidential. A HECO spokesman said those details would be made public once the utility formally submits the power purchase agreements to the PUC for approval.
However, at least five of the projects have become publicly known because of community outreach undertaken by the developers.
Two of the developers, Eurus Energy America Corp. and NextEra Energy, have met with the chairwoman of the Waianae Neighborhood Board to brief her on two projects planned for the Waianae Coast. First Wind Solar Group has met with officials of two neighborhood boards in Central Oahu to provide them with details on two waiver projects planned for the area. In addition, First Wind Solar has met with the North Shore Neighborhood Board to discuss plans for a PV facility near the existing Kawailoa wind energy project.
