Dive Brief:
- Negotiations have stalled between Hawaiian Electric and the developer of an ocean thermal energy conversion project that could have delivered 100 MW to Oahu and would have been the first project of its size globally.
- Maryland-based developer OTEC International told Pacific Business News that changes in the utility's demand profile and leadership have “put the project on the backburner,” though interest still remains.
- The company began negotiating with HECO in 2008 to ink a power purchase agreement and develop the facility, but OTEC said it is now focused on projects in the Caribbean.
Dive Insight:
A thermal energy conversion project planned for the Leeward Oahu coast has been scrapped, possibly the victim of Hawaii's fast move towards solar power. OTEC International had been developing the project for several years but interest lagged amidst changes at the island's largest utility.
“We are very interested in doing a project in Hawaii, but we really have had to pause while other issues were addressed," OTEC President Eileen O'Rourke told Pacific Business Journal.
HECO officials also confirmed to the news outlet, “we have not heard from [OTEC International] in quite a while.”
During the seven years the company and HECO were negotiating a power purchase agreement and considering the project, Alan Oshima took the lead at HECO and more recently NextEra Energy has been in talks to purchase the utility.
Hawaii has aggressive renewables targets, and Gov. David Ige recently signed a bill committing the state to sourcing 100% of its power from renewable sources by 2045. Research from Stanford has found the state can meet that target, but it will need to bank heavily on both rooftop and large-scale solar power.
Hawaii's new renewables mandate, effective July 1, sets interim targets of 30% by 2020, 40% by 2030, and 70% by 2040 interim.
