Hawaiian Electric Company Hopes to Reduce Rates Through Renewable Energy Projects

The Hawaiian Electric Company is working with state regulators to bring in five new renewable energy projects to the state.  The developers of these projects will produce a combined 64-megawatts of energy, or about 5 percent of Oahu's needs.  The agreement would call for these projects to sell the energy generated to the Hawaiian Electric Company for an average price of 15.9 cents per kilowatt-hour, which would be approximately 33% less than what it currently costs HECO to produce the equivalent power.  It is believed that the five projects combined could save the company $7.4 million a year.

HECO Vice President for energy resources and operations, Scott Seu, stated, "These projects represent an important first step as we are starting to see lower market prices for renewable energy.  The strong response we received (from developers) demonstrates the high level of competition in our market. That's good news for customers."

The Public Utilities Commission is currently reviewing the developers and their projects.  The names of the developers and their projects will not be announced until they are proved by the PUC.

Source: Honolulu Star Advertiser, 6-20-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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