Monday, March 16, 2009

PGV Eyes Adding 8 More Geothermal Megawatts

The timing is coincidental but couldn’t be better. Puna Geothermal Ventures, which celebrated its 15th anniversary in December, is working to add 8 megawatts of generation capacity to its Big Island plant.

Today’s story in the Honolulu Advertiser arrived a few hours before today’s Business Game Plan seminar, which includes Henk Rogers’ presentation on the status of renewable energy progress in Hawaii and the challenges ahead to expand green energy here.

The story ends with this observation: The contract being negotiated by the Big Island utility and PGV’s owner “will be based on business costs, plus a reasonable profit and other factors.”

Gone will be the “avoided cost” formula, which has determined what renewable energy developers are paid based on the cost of fossil fuels the utility avoids burning to generate power on its own.  This new approach presumably is part of the new way of doing business announced with considerable fanfare in October.

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