I think this comment from “Skeptical once again” that came in yesterday deserves to be promoted to a regular post, so here goes….
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Here’s an interesting blog entry by Henry Curtis from Disappeared News regarding the Big Wind.
It seems that the PUC has been frustrated with what seems to be habitual sneakiness on HECO’s part.
Here is the first part of the story:
“A few years ago the Public Utilities Commission approved a new Competitive Bidding process for new electrical generation. Just beating the requirement for competitive bidding, HECO filed a Request For Proposal [RFP] in 2008 seeking renewable energy projects on O`ahu ranging from 5-100 MW each. Castle & Cooke and First Wind Hawaii each submitted proposals for large wind farms (350-400 MW) on Lana`i and Moloka`i and connecting the wind farms to O`ahu via an undersea high voltage transmission line. On December 31, 2008, HECO reached an agreement with Castle & Cooke and First Wind to bifurcate or split their proposals, accepting 200 MW from each of them. The Public Utilities Commission ruled that this whole process was highly irregular, but agreed to it in the interest of meeting State renewable energy goals. The Commission gave a deadline of March 2011 to completing the rough financial terms of the agreements.”
But that is just the first part of the PUCs frustration with HECOs apparent connivance.
“Castle & Cooke met the deadline, First Wind failed to do so. Thereupon, HECO told the PUC there was a secret part of the HECO- Castle & Cooke and First Wind agreement that allowed HECO to re-assign First Wind’s proposal to Castle & Cooke, who in tern, could give it to Pattern Energy, who in tern would be financially assisted by Biological Capital. First Wind challenged this interpretation.”
The PUC is often cast in public discourse as the rubber stamp of HECO, but the PUC’s reaction would suggest that it is quite independent of HECO and quite critical of both HECO and the Big Wind project, as the rest of the entry would suggest.
“On July 14, 2011 the PUC rejected this convoluted process. Instead the Commission proposed that competitive bidding be used to secure First Wind’s 200 MW of Moloka`i wind energy. “It should be noted that by requiring a new RFP [Request For Proposal] , the commission does not intend to favor particular energy resources or geographical locations over another. Instead, the commission seeks to encourage a greater number of renewable developers to enter into the process. Based on the foregoing, the commission hereby directs HECO to submit to the commission a new RFP according to the Framework for Competitive Bidding. The new RFP shall be for a minimum of 200 MW of renewable energy.” The Commission’s ruling added: “the commission wishes to stress that such findings are not meant to illustrate an endorsement of the inter-island renewable energy project, nor has it made a substantive determination of the project’s viability. The commission reserves the right to revisit any and all aspects of a project’s viability when HECO makes its formal Application for approval of any power purchase agreement.”
Civil Beat also has a story on this.
In other news, here’s a column in the Star Advertiser by Richard Borreca that points out how the Abercrombie administration seems to be moving itself away from its earlier various energy initiatives.
Borecca writes of the Big Wind:
“Not mentioned in Abercrombie’s plan is the so-called Big Wind project on Molokai and Lanai. It is easily the biggest, most controversial neighbor island development since the ill-fated Hawaii Superferry project during the Lingle administration. During a speech last week, Abercrombie stopped short of saying he would fight to the death for windmills on Molokai and Lanai, but he was adamant about a cable providing power from the neighbor islands to Honolulu. “I’m working so hard to get the cable. … It has to be done on an island-wide basis; we all have to share in the cost. We have to see this as something we all have to do,” Abercrombie said.”
What is interesting is that the Big Wind is not in the administration’s plans.
In fact, although Abercrombie has been a strong supporter of the inter-island cable, whenever he talks about the cable, he links it with developing geothermal energy on the Big Island.
The point here is that some of us have been assuming that the fix is in, that the status quo has been conniving to establish a centralized energy grid in the face of immanent change in trends of energy development.
What we find here, however, is evidence that the elite is largely skeptical of the Big Wind project.
Now, HECO is of course big on the Big Wind, but this information would seem to suggest that not many people within government are for it.
These articles would not only suggest fragmentation among the elite on their positions on energy policy, but also ambivalence and even confusion. It would seem that they are making it up as they go along (just like the rest of us…). There is no big conspiracy.
Perhaps eventually we are just going to have to burn more coal. The HCEI might prove a catalyst to change, but not the one that any of us once expected.
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The problem about this kind of decisions is corporations like Big Wind hawk it to politicians’ staff and staff who ‘advise’ Abercrombie who eats it up. They don’t ever do too much examination.
There is a website floating around that Abercrombie himself needs to study http://www.FriendsofLanai.org
Thanks, Ian! I did not think my comment would see the light of day.
Much like the City’s rail project, the Big Wind might turn into a kind of “perpetual project” that never dies but never moves forward.
The question now is — “Now what?”
Many within the elite who don’t like the Big Wind do seem to like geothermal on the Big Island. That will require a cable, and that cable will be used as an excuse by HECO to pursue Big Wind, regardless of how dubious Big Wind may seem to the rest of the elite.
But it will have to be a superconducting cable since transmission losses over such a distance will be severe, and that kind of superconducting technology seems to be in its relative infancy. So developing geothermal on the Big Island will probably be for electricity consumption on the Big Island, at least in the medium term. Likewise, each island may have to develop its own renewable resources before the islands are linked together. The Big Wind might survive to be developed in the long term, but not on islands but in the channel between the islands, where the wind patterns are optimal.
Every country in the world that does not export petroleum generally derives most of its electricity from coal; that is true for the United States, and also for Europe and Asia. By law, Hawaii is limited to deriving only 10% of its electricity from coal. It might get to the point where the State legislature will just change this very politically correct law and just burn more coal. Remember, coal ain’t good, but its not that much worse than oil, and with the rest of the world mostly using coal, Hawaii’s not going to cause a dramatic rise in greenhouse gases (it’s hubris to think Hawaii has any such influence).
Here’s an idea: Electricity derived from coal in Hawaii could be charged to consumers at the same rate as electricity derived from petroleum. The enormous profits that would accrue as petroleum becomes more expensive would be given back to consumers in the form of rebates on solar panel installation. The cost to taxpayers of developing solar in Hawaii would plummet, and eventually the state could cut back on its coal use again. (Perhaps liquid natural gas will be brought in in the long term to replace coal; that too could be charged at the price of petroleum, with profits again given back as rebates for solar.) This might fast track solar development, or perhaps other forms of renewable energy.
Great post Ian. As is evident and almost palpable…the cable, big wind, geothermal discussion is starting to simmer up if not already boil. This is why the Environmental Caucus of the Democratic Party is sponsoring a series of Round Table Discussions On Hawaii’s Energy Future. Our first one held this past Monday was a great success. Our next “Power Visions” is on July 18, 6pm, is free, open to public and promises to be Hawaii energy discussion of the year – with Robbie Alm and Mark Duda, two of the most akamai energy guys in our State sharing the panel and responding to questions. http://t.co/mSM1gJY
A Community Conversation On Hawaii’s Energy Options
Series of Round Table Discussions
6pm until 8pm – Upstairs at Ward Warehouse near Kincaids – Honolulu
Sponsored by the Environmental Caucus of the Democratic Party of Hawaii
General public is welcome at this free event
…
July 18th – Power Visions: Hawaiian Electric and Hawaii Solar Industry
Robbie Alm, Hawaiian Electric Company – Renewable goals and HECO’s vision for the future
Mark Duda, Hawaii Solar industry Association – An alternative and distributed path
July 25th – Big Cable and Big Wind: The Plan, The Questions and the Concerns
Gerald Sumida, Chair HCEI – The importance of an undersea cable and Big Wind
Estrella Seese and Maria Tome, State Energy Office – Policy, Plan, Process
Robin Kaye, Friends of Lanai, Kanoho Helm I Aloha Molokai – Community concerns and impacts
Former Representative Lyla Berg
August 1 – Fuel For The Future: What’s Next?
Kelly King, Pacific Biodiesel -Benefits and Challenges of Sustainable Renewable Fuel
Robbie Cabral, Innovations Development Group – An indigenous model of geothermal development
Joshua Strickler, Public Utilities Commission – Overview and vision for future
Jeff Mikulina, Blue Planet Foundation – Wrap Up – energy security – oil depletion – climate change – a myriad of paths/options/technology