Is the state’s only geothermal power plant losing steam?
Production at Puna Geothermal Venture, which contracts with Hawaii Electric Light Co. to provide up to 38 megawatts of renewable energy, averaged only 24.7 megawatts during the state’s last fiscal year, according to a report to the Legislature.
The Department of Land and Natural Resources provides the document as part of an annual update on the distribution of geothermal royalties and the prospect of creating an interisland power cable. Regarding the latter, there has been no progress, the report says.
But noteworthy is the production level at PGV, which brought its sixth production well online near the end of that fiscal year, running from July 1, 2014, to June 30, 2015. The report says PGV completed maintenance and repairs on two wells during that time period, which likely affected energy output.
With the new well online, the plant on Kilauea’s East Rift Zone outside Pahoa still remains below capacity.
Mike Kaleikini, senior director of Hawaii affairs for Ormat Technologies, which operates PGV, said the plant is now producing 30 megawatts.
“There’s still more work to be done overall,” he said, when asked how the plant will increase production, and whether more wells will be needed.
“We got some plans in the works,” Kaleikini added, without providing specifics. “We don’t have any firm plans.”
He said PGV intends to host a community meeting later this month to discuss the status of the plant and future prospects.
Kaleikini said Ormat remains committed to the location.
“We’ve been here over 20 years,” he said. “We are in it for the long haul.”
A “resource assessment” also will be completed shortly that could shed light on the production issues, he said.
“It will give us a firm handle … tell us exactly what’s happening,” Kaleikini said.
The last assessment occurred as part of the plant’s 8-megawatt expansion, with help from the American Recovery and Reinvestment Act of 2009.
Ormat is facing a lawsuit in federal court alleging that it defrauded the federal government of $13.8 million in stimulus funds for the expansion, which increased its capacity to 38 megawatts. The company denies the claim.
HELCO President Jay Ignacio said PGV doesn’t get penalized for the low output, but that does result in lost revenue for the plant.
The utility has to rely more on fossil fuel generation when renewable energy production is lower, he said.
Ignacio said a meeting is also in the works with PGV officials to discuss ways for the plant to return to full capacity.
According to the DLNR report, PGV paid $1.7 million in geothermal royalties last fiscal year. Of that, Hawaii County received $535,708 and $357,139 went to the Office of Hawaiian Affairs.
The remaining 50 percent went to the state.
On average, geothermal provides more than 20 percent of Hawaii Island’s electricity, DLNR said.
Email Tom Callis at tcallis@hawaiitribune-herald.com.
