For the first time in more than a decade, the Public Utilities Commission has accepted an updated Hawaiian Electric Co. plan detailing how it will reach the state’s goal of 100 percent renewable energy. Following years of utility foot-dragging and PUC scoldings — such as assertions that HECO’s vision was more focused on profits rather than customers — the ambitious new draft comes as a welcome relief.
What’s more, the Power Supply Improvement Plan (PSIP) update intends to significantly increase our renewable energy use in the near term, which will put the state on pace to meet its goal five years early. Here’s hoping that this time around (HECO’s third shot in recent years at proposing an acceptable update), the plan’s vision locks in place a new paradigm that will touch off much-needed changes for our economy, environment and energy security.
Two years ago, Gov. David Ige signed into law a bill that directs the state’s utilities to generate 100 percent of their electricity sales from renewable energy resources by 2045. Hawaii’s electricity generation is now dominated by fossil fuels, which emit carbon dioxide when burned and contribute to environmental problems such as global warming. And due to the continued costs tied to importing most of the energy used throughout the state, ratepayers shoulder the highest prices nationwide — more than twice the U.S. average.
With the clean energy law in place — a lofty mandate for the most petroleum-dependent state in the nation — Hawaii must continue its transition to a fuller, homegrown renewable portfolio for the electricity sector. We’ll get there by increasing renewable power generation and lowering electrical consumption until the lines meet.
A key to the PSIP near-term objective calls for acquiring nearly 400 megawatts of new renewable energy resources by 2021 — collectively, the largest new generation procurement ever undertaken in the state. (The acquisition would equal about one-third of the capacity of the three generating plants that HECO operates on Oahu.)
The PUC, which oversees and regulates public utilities for reliable service and reasonable rates, applauds the goal. But it also rightly urges the state’s dominant electric utility to move quickly on a “transparent, timely and successful procurement process” and capture federal investment tax credits before they expire.
Jeff Mikulina, executive director of Blue Planet Foundation, a clean energy-focused nonprofit said: “It is literally hundreds of millions of potential savings for customers, if these projects get procured and built quickly.” However, that’s also the sticking point as the utility lacks an effective, speedy procurement track record. HECO must endeavor to make the most of emerging developer interest in meeting Hawaii’s needs.
Other near-term targets include resolving ongoing rooftop solar issues, further improving grid reliability to accommodate renewable energy, and development of a community solar program. Such a program is worthwhile in that it could serve as a sort of ratepayer equalizer in that it enables everyone — renters and high-rise dwellers, included — to reap renewable energy benefits.
To reach the 100 percent mark, utilities statewide will likely expand solar, wind and biofuel projects. HECO expects private solar systems to more than double by 2030 to 165,000 from the 79,000 now in use across its territories. Such an aim would help the state rebound from costly losses linked to Hawaii’s move in October 2015 to end its net metering policy.
With the PUC signing off on the latest PSIP strategy, there’s no turning back. After 2022, coal won’t be burned to generate electricity on Oahu. While that fossil fuel may be now be the most reliable and cheapest source of power, encouraging advances in technology are making renewables more competitive. The utility cooperative on Kauai, KIUC, for example, is pursuing solar plus storage projects that will provide solar at night at prices that can beat fossil fuels. Its first project with Tesla provides 13 megawatts of power and 52 megawatt-hours of energy at a price of 13.9 cents per kilowatt-hour.
If HECO can make good on its PSIP, its three sister utilities — Hawaiian Electric Co. on Oahu, Maui Electric Co. and Hawaii Electric Light Co. on Hawaii island — will exceed the state’s renewable-energy milestones, reaching 48 percent by the end of 2020; 72 percent, by the end of 2030; and hitting 100 percent by the end of 2040.
Over the past several years, the utility has stepped up transparency and collaboration efforts. The conversation has shifted. Today electricity utilities, ratepayers and other stakeholders agree that achieving 100 percent renewable energy for Hawaii is possible and beneficial.
