Hawaiian Electric Co. said liquefied natural gas, residential rooftop solar panels and energy storage systems are some resources it plans to use to help the state reach its 100 percent renewable-energy goal, according to an interim status report filed with state regulators Tuesday.
HECO filed the report as it continued to work on its third attempt at a power supply plan. The state Public Utilities Commission required the interim report when it ordered HECO back to the drawing board in November. HECO will file the refreshed “Power Supply Improvement Plans” on April 1.
“This status report is a work in progress, and reflects our commitment to achieve our state’s 100 percent renewable portfolio standard,” said Alan Oshima, HECO president and CEO. “As we plan for how to get there, we’re focused on protecting our environment, and ensuring the reliable service and reasonable costs our customers expect and deserve. With a 30-year planning horizon, any plan developed today will naturally evolve and the flexibility to incorporate changing technology and other developments is
critical.”
HECO said it still plans on using liquefied natural gas, or LNG, as a bridge fuel, despite Gov. David Ige’s outspoken opposition to its use for power generation. HECO said quick-starting generators, like those that run on LNG, would balance the inconsistencies of solar and wind generation.
“(LNG) could provide a transitional fuel that minimizes price volatility and is much cleaner and lower in cost for customers than oil until LNG is phased out in favor of renewable options,” HECO said in a press release.
HECO said that the lowest overall cost and most significant reduction in emissions would come from replacing three older oil-fired steam generator units at the Kahe Generating Station with a new, fuel-saving combined-cycle system that would run on LNG.
NextEra Energy Inc., the company working to purchase HECO’s parent company, Hawaiian Electric Industries, helped HECO identify the best option for using LNG. NextEra’s purchase of HEI is being reviewed by the PUC and needs the state agency’s approval to close.
The interim report also listed rooftop photovoltaic systems, utility-scale solar and wind, geothermal, biomass and biofuels as resources that will help the state cut its dependence on fossil fuel. In the report, HECO said it would be open to offshore wind turbines.
To supply power during times when the sun isn’t shining or the wind isn’t blowing, HECO said it plans to use microgrids and energy storage. HECO said demand-response options, such as having customers reduce their electricity use during periods of high energy demand, also would help balance the utility’s grid.
The PUC scolded HECO in November for its “repeated failures to properly plan” a path to lower electrical rates using renewable energy.
In August 2014 HECO filed a “Power Supply Improvement Plan” with the PUC that outlined its goals for 2030. Those goals included lowering residential customer bills by “more than
20 percent,” getting 65 percent of its energy from renewable sources, using LNG as a bridge fuel and tripling rooftop solar panels.
The August 2014 plan was a second attempt by HECO, after the PUC rejected the utility’s initial power supply plan filed in June 2013. The PUC originally asked Hawaii’s largest electrical utility to come up with an action plan to achieve the state’s energy goals and integrate substantial amounts of renewable-energy resources while maintaining affordable rates.
The PUC has named 23 parties in its power-supply plans docket.