The Big Island's energy landscape is poised for a potential transformation as Honua Ola Bioenergy, formerly known as Hu Honua Bioenergy, eyes a third power purchase agreement (PPA) with Hawaiian Electric Company (HECO). According to a recent announcement, the company’s president confirmed “an agreement in principle” for a deal that would allow Honua Ola to sell electricity to HECO consumers Hawaii News Network.
This potential agreement comes after a history of legal and regulatory hurdles for the biomass plant, which aims to generate power by burning wood, including eucalyptus and invasive albizia trees Hawaii Tribune-Herald. The plant, located in Pepeekeo, has faced challenges related to environmental concerns and cost-effectiveness. However, with the “99.9% completed” facility, the company is seeking to finalize a “nonrevocable power purchase agreement” to bring the 21.5-megawatt plant online.
The implications of a successful PPA are far-reaching for Hawaii’s business community. For investors, the project represents a significant opportunity in the renewable energy sector, potentially stimulating further investment in sustainable infrastructure on the Big Island. For entrepreneurs, the availability of a new, potentially lower-cost energy source could impact operational expenses, providing a boost for local businesses. Moreover, the project aligns with the state’s commitment to achieving 100% renewable energy by 2045, contributing to long-term sustainability goals. The project aims to add a new source of locally fueled renewable electric generation, helping to shield residents and businesses from spikes in oil prices Honua Ola Clean Renewable Energy for Hawaii Community.
However, a PPA is still subject to Public Utilities Commission (PUC) approval. Previous contracts faced legal challenges related to the environmental impact and cost, as the electricity price was more than twice that of comparable solar power generation projects Hawaii Free Press. The PUC will likely consider factors such as the reduction of greenhouse gas emissions, the impact on ratepayers, and the overall public interest when evaluating the proposed agreement. The success of this third PPA hinges on navigating these regulatory and legal complexities.
Warren Lee, the president of Honua Ola, emphasized that the power generated would be “firm, renewable energy.” If the third PPA is approved, it could provide a much-needed boost to the island's energy grid, potentially leading to more stable energy prices and reduced reliance on fossil fuels. This would not only benefit residents and businesses but would also support Hawaii's broader sustainability objectives.
