In early 2020, the Puna Geothermal Venture (PGV) and HELCO signed an amended PPA to cover a planned expansion of the capacity of the Puna geothermal power plant from 38 MW to 46 MW. This earlier amendment also extended the PPA term by 30 years.
However, delays, global supply chain issues, and recent increases in energy-related costs meant that PGV can no longer abide by the original terms of the amended PPA, particularly the date at which the additional capacity can be supplied to HELCO. Thus, the new amendment delays that supply date for additional power and increases the annual capacity payment from HELCO to PGV from USD 19.5 million to USD 28.2 million.
The PPA also includes a clawback clause in case the actual costs of the work being done at Puna is less than anticipated costs. However, no additional capacity payments will be made if the actual costs exceed the projections.
HELCO stated that this new PPA will result in a decrease in the electric bill of residential customers. For the average user consuming 500 kWh per month, the savings is estimated to be USD 23.62. “Despite the increased price, the Project will significantly reduce customer bills while providing much-needed rate stability to customers through fixed energy pricing that is not tied to fossil fuel prices and will provide other benefits in terms of GHG reduction and contributions towards RPS.”
