NEWLY APPROVED HU HONUA BIOMASS POWER PURCHASE AGREEMENT ALIGNED WITH STATE’S RENEWABLE ENERGY GOALS

For Immediate Release: December 23, 2013

HONOLULU — The Department of Business, Economic Development and Tourism’s (DBEDT) State Energy Office commends the Hawaii Public Utilities Commission’s (PUC) approval of the Hu Honua 21.5 MW biomass power purchase agreement on Hawaii Island.

“DBEDT commends the PUC for carrying out the state’s energy policy directives in pursuit of a diversified energy portfolio,” said DBEDT Director Richard C. Lim. “This decision reflects our policy of balancing technical, economic, environmental and cultural considerations for renewable energy projects, providing cost savings and creating green jobs in Hawaii County.”

“Hu Honua will deliver a firm, dispatchable, biomass resource to Hawaii Electric Light Company’s (HELCO) renewable energy portfolio, which will not only reduce HELCO’s dependence on imported fossil fuels, but will also provide necessary grid support services,” said PUC Chair Hermina Morita. “Importantly, this project will enable HELCO to retire aging and expensive fossil fuel power plants to help lower the high cost of electricity paid by HELCO’s ratepayers.”

Located on a 25.57-acre site in Pepeekeo, Hu Honua is in the process of refurbishing the power plant originally built in 1972 for the Hilo Coast Processing Company sugar mill. The PUC’s approval of the 20-year Power Purchase Agreement includes pricing that is lower than avoided cost and de-linked from fossil fuel pricing. Its community benefits will include economic stimulus and job creation at the facility as well as in industries on Hawaii Island such as forestry, harvesting and hauling.

Added State Energy Administrator Mark Glick, “The State Energy Office welcomes the addition of this biomass project to Hawaii County’s renewable portfolio, which has the state’s highest concentration of renewables in operation on any island with more than 40 percent renewable generation.”

The state’s energy policy may be found on the State Energy Office’s website at energy.hawaii.gov. The PUC’s decision may be found on its website at https://dms.puc.hawaii.gov/dms/ (Docket No. 2012-0212).

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For more information, contact:

Noreen Kam
Communications Officer
DBEDT’s State Energy Office
Phone: (808) 587-3860

STATE AIRPORTS ENERGY PROJECT TO CONTINUE HAWAII’S EFFICIENCY MOMENTUM

For Immediate Release: December 18, 2013

HONOLULU — Under the leadership of Gov. Neil Abercrombie, the Department of Business, Economic Development, and Tourism’s (DBEDT) State Energy Office is providing technical assistance and guidance for the Department of Transportation’s newly announced energy efficiency program.

Using Energy Performance Contracting (EPC), the state’s 12 airports will be modernized with the latest in energy efficient and green technology. The project will cut energy use by 49 percent, create hundreds of local jobs, and save at least $518 million in energy costs over the next 20 years. Improvements will include the replacement of transformers, light fixtures and chilled water and air conditioning systems, as well as the addition of solar photovoltaic panels, installation of smart controls, and deferred maintenance.

“This energy savings agreement is further testimony of the leadership of Gov. Abercrombie, who constantly challenges all state agencies to lead by example and walk the walk,” said Mark Glick, State Energy Administrator. “This project reflects our focus on high impact solutions to meet our efficiency and renewable energy portfolio targets.”

EPC is an innovative approach to implementing energy and water efficiency measures using guaranteed energy savings to pay for projects. Hawaii leads the nation in EPC per capita investment and was recently honored with its second consecutive national Race to the Top award.

The project has garnered national praise from multiple energy organizations. Dan Crippen, Executive Director of the National Governors Association, noted that, “This announcement is a great example of how energy performance contracts can help governors and states achieve cost-effective energy savings in public facilities. “I am happy NGA was able to support Hawaii’s work to set the stage for significant energy savings at state airports.”

Added David Terry, Executive Director of the National Association of State Energy Officials, “This is the largest performance contract investment by a single state agency that we are aware of, and we commend the Governor and the State of Hawaii for this outstanding achievement.”

According to the Energy Savings Coalition (ESC), which tracks EPC nationwide, Hawaii will now hold the largest single EPC agreement by a state agency, with the previous contract being the Alabama prison system for $90 million. “Clean energy efforts like this demonstrate great leadership on the part of Hawaii state government,” said ESC Executive Director Jim Arwood.

A division of DBEDT, the Hawaii State Energy Office (SEO) is providing key advice and technical assistance to DOT for this program. With a successful track record of assisting government agencies with EPCs since 1996, SEO has provided technical assistance to such entities as the University of Hawaii, City & County of Honolulu, and Counties of Hawaii and Kauai.

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The Hawaii State Energy Office is leading the state’s charge toward clean energy independence. With a goal to meet and exceed Hawaii’s 70 percent clean energy targets by 2030, the State Energy Office is committed to developing and deploying high impact solutions that will maximize Hawaii’s renewable energy resources and improve efficiency and transportation standards. Through effective policies and innovative programs, the State Energy Office has positioned Hawaii as a leading proving ground for clean energy innovation, which will generate quality jobs, attract investment opportunities and accelerate economic growth. The State Energy Office is a division of the state’s Department of Business, Economic Development and Tourism. For more information, visit www.energy.hawaii.gov.

 

For more information, contact:

Noreen Kam
Communications Officer
DBEDT’s State Energy Office
Phone: (808) 587-3860

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