Tag Archives: Photovoltaic

Island Photovoltaic Permits in Dramatic Decline

Richard Ha writes:

Marco Mangelsdorf, who owns ProVision Solar in Hilo, is one of the most credible commentators I know of in the energy industry. The fact that he owns a solar company has never affected his intelligent analyses. He has no bias but just calls it like it is. I respect his integrity explicitly.

He recently sent me this information about November photovoltaic (PVV) permits, and I got his permission to reprint it here:

[November was the] nineteenth straight month of year-over-year decline. I believe a case can be made that the island’s PV industry may be in a state of terminal decline as far as roof-top PV. It’s hard to see factors that would lead to a sustainable upswing at least in the next several years. With the federal tax credit scheduled to disappear for residential PV as of January 1, 2017 and go down from 30 percent to 10 percent for commercial PV, grid penetration issues and NextEra’s apparent preference for utility-scale PV over distributed generation, the skies seem unlikely to brighten in the near-term for the local PV industry. And forget any immediate relief coming from some magic bullet in the form of energy storage. Ain’t gonna happen no matter how much some commentators predict it along with a mass exodus from the grid. Said pundits have likely never spent any time, let along months or years, living off the grid and the considerable energy, time, resources and conscientiousness that off grid living entails. 

November 2014 PV permits—520, a drop of 50 percent over last year. (November 2013 PV permits—1,040.) 

January-November 2014—5,914, a drop of 51 percent from the same period last year.  (January-November 2013 PV permits—12,163.)  

The number one PV permit puller on the island, Vivint Solar, has seen their numbers take a substantial dive in October and November. Their monthly average January-September 2014 = 92 PV permits.  In October, they obtained nine permits while they pulled 15 last month.  

January-November 2014  

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A Visit to Kauai Island Utility Cooperative

I was invited to visit the Kauai Island Utility Cooperative (KIUC) by its Board Chairman Phil Tacbian. He and Dennis Esaki, who is Vice President of the founding Board, gave me an orientation.

Kauai Island Utility Cooperative (KIUC) is a not-for-profit generation, transmission and distribution cooperative owned and controlled by the members it serves. Headquartered in Lihue, Kauai, Hawaii, the cooperative currently serves more than 32,000 electric accounts throughout Kauai. Committed to reinventing how Kauai is powered, KIUC is aggressively pursuing diversification of its energy portfolio to include a growing percentage of hydropower, photovoltaic, bio-fuel, and biomass.

It was my first visit and I had a very favorable impression of their corporate culture. This is a model that aligns the interest of the people with the interest of the utility. It’s evident that the employees are proud of their organization. They are coming up on their 10th anniversary celebration.

I toured the Kapaia Power Station. It includes a General Electric LM2500PH steam-injected combustion turbine. The unit can burn either naphtha or No. 2 fuel oil. Steam is injected at approximately 10,000#/hr for NOx control and 56,000#/hr for power augmentation. It appeared to me to be unique in its use of steam injection to enhance power generation. A small part of the CO2 was transported next door to an open raceway algae farm.

Back in 2002, KIUC agreed to pay Citizens Communications of Connecticut $215 million for Kauai Electric’s assets. The National Rural Utilities Cooperative Finance Corporation (CFC) had approved loans to KIUC for up to the total purchase price, plus they had a $25 million secured line of credit and a $60 million disaster recovery line of credit, which was from FEMA following Hurricane Iniki, which had happened 10 years earlier.

The combination of having a very willing seller, plus a line of credit from FEMA, was very helpful.

It did not appear there was much funding for infrastructure upgrades.

It’s clear to me that it took countless hours of volunteer time, plus careful analysis and implementation, to bring KIUC to this place it is at 10 years later. It was certainly not easy then, nor now, and the work continues. I was very impressed.