NextEra Energy, a Florida-based company that agreed to purchase Hawaiian Electric Industries for $4.3 billion, is finding a lot to like about the Big Island.
NextEra Energy, a Florida-based company that agreed to purchase Hawaiian Electric Industries for $4.3 billion, is finding a lot to like about the Big Island.
The company has placed a major emphasis on expanding renewable energy in the state since announcing the deal last week.
And, according to Eric Gleason, president of NextEra Energy Transmission, one of the company’s subsidiaries, there’s no better place to do that than the Big Island.
“Honestly, what gets my attention is the prolific, diverse, world-class renewable resources of all types (on the island),” he said. “If there is an island in the state that gets to 100 percent renewables first, it ought to be the Big Island.”
But how it could eventually get there remains to be seen.
Gleason said NextEra Energy hasn’t decided which renewable projects it will pursue, though wind, biomass, solar and geothermal all remain on the table.
He said the company’s plan is to displace the use of oil-burning power plants while also lowering costs for customers, goals also shared by HEI, the current owner of Hawaii Electric Light Co.
“The overall goals we support are cleaner energy, more affordable energy, and to get there as quickly as possible,” Gleason said.
He said he is confident renewable energy will contribute to lower energy costs, noting that the cost of producing power is about 17 cents per kilowatt on the Big Island.
That’s mainly attributed to the cost of oil.
“The price to beat for renewables is 17 cents,” Gleason said. “As long as you can integrate costs effectively … you can save customers money.”
Use of batteries to store energy from intermittent sources such as solar and wind power could help the island move away from the use of oil, he said, but isle residents shouldn’t expect fossil fuels to be eliminated entirely anytime soon.
For instance, liquefied natural gas could be used as a cleaner alternative to oil, Gleason said.
“Our view is the way technology is today that some level of fossil fuels could give the degree of (firm power) that’s going to be required,” he said. “Maybe not forever. That’s why we support HELCO’s plan that they filed that includes some fossil fuel use in the system.”
Geothermal is another source of firm, or constant, power HELCO has pursued.
Jay Ignacio, HELCO president, said the company is asking for final and best offers from those seeking a contract for expanding geothermal power on the island by 25 mgw or more.
He said the purchase won’t impact that process, though NextEra Energy will be consulted if a deal is made before the sale is finalized.
Gleason said an undersea cable to connect the state’s electrical grids could be pursued but the company doesn’t have any plans to do so at the moment.
“I think a cable to the Big Island is feasible, but whether or not things happen ultimately depends on whether it’s in the public interest,” he said.
Email Tom Callis at tcallis@hawaiitribune-herald.com.