HECO asks regulators to approve low-cost power generation

• 11 years ago (2013-06-22)
• David Flin

North America 1021 Renewables 776

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Hawaiian Electric Co. is asking US state regulators for permission to negotiate with the developers of five renewable energy projects that want to sell electricity to the utility for one-third less than HECO’s current cost of generating power.

If the Public Utilities Commission approves the request, HECO will negotiate power purchase agreements with an average price of 15.9 cents/kWh. The five projects proposed include a mix of solar and wind technologies with a combined generating capacity of 64MW. HECO anticipates negotiating 20-year contracts for each project.

Based on preliminary estimates, HECO said that the combined effects of the five projects could reduce generation costs by $7.4 million a year compared to the current cost of generation from oil-fired plants and renewable sources.

Scott Seu, HECO’s Vice President for Energy Resources and Operations, said: “These projects represent an important first step as we are starting to see lower market prices for renewable energy. The strong response we received demonstrates the high level of competition in our market. That’s good news for customers.”