Following the back and forth with an RFP for the development of a 25 MW geothermal project in Hawaii, there is now a new turn.
Announced in February, Ormat withdrew from contract negotiations with HELCO after winning the bid with the lowest price offered.
Now the company with the next best price wants to be declared the winner. Hu`ena Power, the development arm of Innovations Development Group is now saying that “the award of 25 MW of geothermal generation to Hu`ena would provide substantial cost savings to consumers.”
According to HELCO, “Petitioner’s proposed pricing is unreasonable and not in the interests of customers of Hawai‘i Electric Light.
Specifically, Petitioner’s proposed price is not only almost double the threshold price set forth in the Geothermal RFP, but Petitioner was not even the next lowest priced proposal submitted.”
“In fact, Petitioner’s proposal was the highest priced proposal of them all. Specifically, Petitioner’s proposed levelized price was more than 26% higher than that of the next highest proposal.”
So the story continues.