CUC will not meet green energy mandate this year

The Commonwealth Utilities Corp. will not be able to get any of its power from a renewable energy source by the end of the year, as required by public law.

“We really have got to be realistic. Our financial condition is such that we can’t be a catalyst right now just to go out and get renewable energy,” said Antonio Muña, executive director of CUC.

Under Public Law 15-87, renewable energy must comprise 10 percent of the power CUC generates by the end of 2008. The renewable energy portfolio standard will double every two years until it reaches 80 percent by 2014.

In September, CUC had to cancel efforts to obtain renewable energy sources due to flaws found by the Office of the Public Auditor in the procurement process.

The utility company needs to go back and revisit the idea of renewable energy, Muña said, because it can be a win-win situation. It not only helps the environment, it helps affordability as well, he said.

Unfortunately, Muña said, in accordance with Public Law 16-17 privatizing CUC, contractors conducting the bid evaluation must be U.S.-certified. But CUC has worked with the Legislature to redefine the requirements of the contractor. Once the law is passed, CUC can begin looking into the privatization process.

According to PL 15-87, CUC may aggregate the renewable portfolio in order to meet the requirements. Also, if it is determined that CUC cannot reach the portfolio standards in a cost-effective manner or because of unforeseeable circumstances beyond its control, the utility company can be relieved of some or all of the responsibility of meeting the standards.

Gov. Benigno Fitial has expressed continued interest in exploring the possibility of developing geothermal energy on Pagan, in order to offer more affordable power rates to CNMI residents.

The U.S. Department of the Interior has offered the CNMI a $220,000 grant to study whether it is feasible to build a geothermal plant in one of the islands north of Saipan, most probably Pagan. Fitial has appointed his alternative energy adviser, former USGS volcano expert James Quick, to lead the ongoing effort.

The Pacific islands have the highest renewable energy potential per capita, and renewable energy is the most cost-effective source for many areas in the Pacific, an expert on renewable energy said last month at the Pacific Climate Roundtable in Apia, Samoa.

Geothermal energy has a lot of potential, but initial assessments are extensive and can costs millions of dollars, compared to other renewable sources with assessments in the thousands, said Solomone Fifita from the Pacific Island Greenhouse Gas Abatement through Removable Energy, PIGGAREP.

“For geothermal, costs can number up to the millions. You need an interested investor to confirm there is geothermal energy there,” he said.

Eleven countries in the Pacific are taking part in PIGGAREP, which aims by June 2012 to remove the barriers to widespread utilization of renewable energy. The Global Environment Facility provided $5.23 million for the project. The CNMI is not one of the areas taking part, although depending on funding sources the Commonwealth can be eligible, Fifita said.

Several Pacific Island countries have set renewable energy targets. By 2011, Fiji hopes to have renewable energy in their power utility company. Samoa hopes to have 20 percent of its power production from a renewable source by 2030, and by 2010 Tonga hopes 40 to 50 percent of its energy will be from a renewable source.