CleanTechnica•about 1 month ago
Hawaiʻi’s LNG Business Case Was Overly Optimistic & Built On A Broken Spreadsheet
Key Takeaway
A fundamental flaw in economic analysis can derail an entire energy strategy, highlighting the critical need for robust and transparent business cases in power generation planning.
AI Summary
- •Hawaiʻi's LNG business case was critically flawed, omitting the cost of the LNG fuel itself, leading to a significant underestimation of actual power costs.
- •This revelation undermines the economic viability of LNG-based power, making it less competitive than previously projected and likely increasing energy costs for large consumers and the grid.
- •The findings, highlighted by the Sierra Club, will force a major re-evaluation of Hawaiʻi's energy policy, potentially accelerating the transition away from fossil fuels.
- •For developers and IPPs, this indicates increased financial risk and scrutiny for future LNG projects in Hawaiʻi and similar markets, shifting investment focus towards more economically sound alternatives.
Topics
ccgtemissionsfinancingpolicyppasolarstoragewind
Article Content
The revelation that the spreadsheet behind Hawaiʻi’s headline LNG savings case appears not to include the cost of the LNG itself is the kind of finding that changes the center of gravity of an entire policy debate. The Sierra Club of Hawaiʻi press release on March 12, built around comments ... [continued] The post Hawaiʻi’s LNG Business Case Was Overly Optimistic & Built On A Broken Spreadsheet appeared first on CleanTechnica .