Hawaii’s Only Coal-Fired Power Plant Being Asked To Add Biomass To Mix

The only coal-fired power plant in Hawaii, which is the single largest generating plant on Oahu, is under financial stress because there is no financial reserve, according to the Hawaiian Electric Co.’s new energy plan released this week. Hawaiian Electric is also asking AES Hawaii to convert some of the energy being produced at the […]

The only coal-fired power plant in Hawaii, which is the single largest generating plant on Oahu, is under financial stress because there is no financial reserve, according to the Hawaiian Electric Co.’s new energy plan released this week.

Hawaiian Electric is also asking AES Hawaii to convert some of the energy being produced at the plant in Campbell Industrial Park to biomass from coal.

Given the potential financial impact of an interruption of service associated with a financial default of AES Hawaii, HECO said it has been negotiating in good faith with the company to explore the possibility of an amendment to the power purchase agreement that would make financial sense to AES Hawaii and ratepayers.

As part of the ongoing negotiations for the change in the power purchase agreement, the state’s largest electric utility has asked AES Hawaii to convert some or all of the energy produced at the facility from coal to biomass, possibly from black pellets made from wood.

“Hawaiian Electric believes that AES [Hawaii] could provide superior optionality for the Oahu power system to optimize between cost and Renewable Portfolio Standard should AES [Hawaii] have the capability to operate on coal and biomass,” the utility said.

From Pacific Business News: http://www.bizjournals.com/pacific/news/2014/08/28/hawaiis-only-coal-fired-power-plant-being-asked-to.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+bizj_national+%28Bizjournals+National+Feed%29

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