Post on 11-May-2015
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Hawaiian Electric Company
Hawaii Clean Energy Initiative Building a Sustainable Hawaii
Seminar in Renewable Energy and Island SustainabilitySeptember 10, 2009
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Hawaii’s Energy Today
Dependent on imported fossil fuel, mostly oil, for 90 percent of our primary energy
• Security Challenges• Economic Challenges• Environmental Challenges
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Our TaskReduce our dependence
on imported oilHow Can We Do This?
While we maintain. . .Security
Comfort & ConvenienceMobility
And still do not want to pay more than we have to?
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Hawaii Clean Energy Initiative
What Does It Mean? • For Our Customers • For the Utility • For Hawaii
Road map to a preferred energy future
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Goals of HCEI • Achieve 70% clean energy by 2030
– 30% energy efficiency– 40% renewable energy
• Hawaii as model of clean energy economy
• Diversify supply to increase security • Economic opportunity at all levels• Foster innovation in technology, finance,
organization & policy • Create clean energy economy workforce
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HECO Energy Efficiency• Energy$olutions for Home & for Business • 13 years -- $97 million in rebates/incentives• Over $500 million savings for customers• Reduced demand = 169 MW • Oil use avoided = 1.6 million barrels/year • CO2 emissions avoided = 864 m tons/year• Highlights:
• > 1.8 million CFL bulbs • > 50,000 solar water heaters • > 39,000 Energy Star® appliance rebates
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Hawaii Energy Efficiency Program• July 1, 2009 taken over by (Science
Applications International Corporation) • Fortune 500® scientific, engineering &
technology company• 45,000 employees; 400 in Hawaii• Customers:Department of Defense,
intelligence, Department of Homeland Security, select commercial markets
• Annual revenues $10.1 B in FY 2008
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Hawaii Energy Efficiency Program
• Energy efficiency & renewable energy
• Funded by utility rate payers• Financial incentives, market
outreach, education, behavior change
All market sectors:– Residential – Commercial– Industrial– Government
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Load Control
• Hawaiian Electric continues Energy Scout Load Control Program– 39,000 residential customers– 44 commercial customers
• Providing 52 MW peak interruptible load
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In Your Home or Business
• Smart Meters • More Solar Water Heating & PV
– SolarSaver (pay as you save)– PV Host (rent your roof)– Net energy metering (NEM)
• More Energy Efficiency (EE) – EE portfolio standard– Continued promotions & rebates
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For the Utility
• New model for business and regulation • Focus on service and efficiency, not
sales• Opportunities
– Retire least efficient oil-fired units – Upgrade to smart grid for 21st century
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• Utility committed to aggressive new RE goals by 2030– 1,100 MW of new RE energy– 40 percent/2030 RPS
• Pledge to smooth purchase power agreement process
• Feed-in Tariff (FIT) to make it easier to develop & sell renewable energy to utilities
RE Developers & Energy Business
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For Hawaii• Greater energy security• Reduced GHG emissions• More money stays home creating
economic opportunities & jobs:− Undersea
cable− Wind farms− Solar
installations − Agricultural
energy − New RE plant
construction
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How Can We Do It?
• Large & mid-size wind projects• Biofuels
–Waste-to-energy–Biomass; land crops & algae for liquid fuels
• Solar power–Customer sited
& utility scale
…more
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How Can We Do It?
• Geothermal• Ocean power
– Seawater A/C– Wave Energy– OTEC
• Next big thing?
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‘Interisland Wind’
• Wind farms on Lanai & MolokaiCastle & Cooke &
First Wind Hawaii each agree to initial 200 MW projects
• Hawaiian Electric planning facilities & operations to integrate 400 MW of wind power on Oahu •State of Hawaii to plan, permit & contract building of inter-island cable
Similar submarine cables in service (Cross Island Cable, many others)
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Transportation solutions
Initiatives must include:– mass transit – all modes– more fuel-efficient vehicles– cleaner alternative fuels– more personal mobility (walk,
bike)
• Rapid adoption ofPlug-in Electric Vehicles
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Electrifying transportation• 1/3 of imported oil in Hawaii used for ground
transportation• Driving an electric vehicle (hybrid or plug-in)
is cheaper (≈1/3 cost) and cleaner (less CO2) than internal combustion engine vehicle
• Hawaiian Electric working – Better Place; Phoenix Motorcars; Idaho National
Laboratory (hybrid conversion to plug-in hybrid) for HECO and MECO; other EV and equipment manufacturers
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Your Bill
• Advanced metering to give you more control
• Time-of-use rates for off-peak savings • Greater savings:
– Solar, energy efficiency & conservation
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Bottom Line
• Bills more predictable than with oil • Total energy cost (electricity &
transportation) lower using RE in place of oil & gasoline
• Hawaii becomes national leader– Increasing energy independence– Reducing fossil-fuel use– Limiting greenhouse gases
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Opportunity to Lead• Island people under- stand sense of
limits• Island people have strong
environmental empathy • Hawaii has trade winds, strong
sunlight, other RE resources
• Hawaii can model a low-carbon and totally modern lifestyle
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What We Need
• Leadership• Laying down our arms• Sense of urgency• Speaking the truth
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Two Simple Words
• LESS– Energy efficiency, conservation, wise use of
resources
• LOCAL– Use our local resources, all of which are
renewable and have lower carbon emissions than using coal and oil for 90 percent of our energy
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•Hawaii’s Energy Future www.hawaiisenergyfuture.com
•Hawaiian Electric Companywww.heco.com
•Hawaii Clean Energy Initiative www.hawaiicleanenergyinitiative.org
Learn More
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Learn More – cont.
•Hawaii energy data http://hawaii.gov/dbedt/info/energy
•Interisland Wind Project www.interislandwind.com
•Hawaii Energy Efficiency Program www.hawaiienergy.com
•Better Place www.betterplace.com
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Hawaiian Electric Company
Basics
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Who is HECO?
• Locally owned and operated• Regulated by government• 400,000 customers (Oahu, Maui County, Hawaii)
• 2,000 employees (HECO, MECO, HELCO)
– 1,200 IBEW union members– 800 non-union
• 19,000 Hawaii shareholders• Over $2 billion in assets• Over $169 million in taxes a year (federal/state)
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Who uses electricity?• 295,000 residential customers:
2 million Megawatt hours/year
• 33,000 commercial/ government/ military customers: 5.5 million MWh/year
• Military alone:1.2 million MWh/year (15.4% of electricity on Oahu)
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HonoluluEnergy Source: OilFirm Generation: 113 MW
AES - HawaiiEnergy Source: CoalFirm Generation: 180 MW
Kalaeloa PartnersEnergy Source: OilFirm Generation: 180 MW
Electricity generation on Oahu
WaiauEnergy Source: OilFirm Generation: 499 MW
KaheEnergy Source: OilFirm Generation: 651 MW
H-PowerEnergy Source: Municipal Solid WasteFirm Generation: 46 MW
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Hawaiian Electric system
Generation(Power plants)
Trans-missionLines
Trans-missionSub-stations
Sub Trans-missionLines
DistributionSubstation
Distribution & Service
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Growing electricity use 1970 - 2005
PopulationGrowth
GSP Growth
Electricity/per capitaGrowth
75%
139%161%
Source: DBEDT Energy Resources Coordinator’s 2006 Annual Report
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Daily peak drives planning
Daily demand peak
usually from 5 to 9 pm, determines how much electric generation is needed
Baseload: 24/7
Cycling
Peak load
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Our dependence on oilWe depend on imported fossil fuel (mostly oil, some coal) for over 90% of all energy – jet fuel, synthetic natural gas, gasoline, and electricity
Oil has challenges:– Security of supply– High cost
– HECO’s oil price up171% from 1996 to 2006
– Environmental impact – Clean air – Clean water– Global warming
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49% of imported crudeoil is from Middle East or Islamic countries
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Refining oil
• Light, quality products first
• Diesel• Gasoline• Residuals
(bunker and LSFO)
Star-Bulletin graphic
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Oil is refined for many uses
Each barrel is refinedfirst for jet fuel, then gasand marine fuel.
What’s left, the goopcalled “residual,” is usedto create electricity.
An “integrated” energy system
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Two myths about renewable energy
• “There is a ‘Silver Bullet.’”‘OTEC is all we need.’ ‘One big solar farm could power all Oahu.’‘Nuclear energy is the answer.’
• “Wind, sun are free; RE should cost less than fossil fuel energy.”At first no. In the long run, as oil gets more expensive, RE prices should be more stable -- and probably cheaper.
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Energy Storage
The greatest technological challenge to achieving the Hawaii Clean Energy Initiative may be finding a way to store utility volumes of renewable
electricity and move it from when it is made to when it is needed.
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Pumped-storage hydro
• Pump water to upper reservoir during non-peak period (overnight)
• Hydro-electric operation during peak demand period
• Overall efficiency about 70%
• Turns irregular ‘as available’ renewable energy into firm energy for peak periods
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Biofuels
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Biodiesel
• Higher energy yield than
ethanol
• Made from vegetable or animal oil: palm, jatropha, soybeans, peanuts, canola, kukui, coconut -- ALGAE
• Feed stock can be imported or grown locally
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Miscellaneous
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Greening our existing assets
• New Unit at Campbell Industrial Park– 110 MW peaking unit -- 2009– RFP for 100% biofuel supply
• Longer-Term Initiatives– Studying biofuels for steam boilers– Planning algae for biodiesel feed stock
demonstration using power plant CO2