The Public Utilities Commission (PUC) approved a Hawaiian Electric biofuel power plant project on Oahu, disregarding a deferment request by the state’s chief energy officer, Mark Glick. The project aims to address the urgent reliability needs of the island’s electric grid.
The PUC imposed a cost recovery cap of $847 million, with a limited inflation adjustment, to minimize the financial burden on ratepayers. Initially estimated at this amount, Hawaiian Electric revised the cost to $1.16 billion. Under the cap, typical residential customers using 500 kilowatt-hours a month can expect their monthly bills to increase by up to $3.62.
The redevelopment will replace six outdated generation units at the Waiau Power Plant with new, more efficient turbines capable of producing 253 megawatts. The project will unfold over three phases from 2029 to 2033.
The PUC’s conditions require the new units to run on at least 51% renewable fuel by 2032, increasing to 75% by 2040, and 100% by 2045. This is part of Hawaii’s goal to generate all electricity from renewable sources by 2045.
Glick had proposed delaying the PUC’s decision, advocating for consideration of a Japanese company JERA’s power plant proposal, claiming it would generate electricity at a lower cost. The alternative $2 billion, 500-megawatt plant would initially use liquefied natural gas and potentially save customers $41.67 monthly while fully transitioning to renewable fuels by 2045. However, Glick’s proposal faced criticism for attempting to disrupt the competitive bidding process.