A third of Oahu's current peak energy capacity will come someday from an underwater cable network that will transfer power from Maui County, state leaders said yesterday in an expansion of an isle renewable energy plan initially rolled out in January.

Under the Hawaii Clean Energy Initiative, the state plans to transfer 400 megawatts of wind power generated on Maui, Molokai and Lanai via cable to Oahu, effectively creating one electrical grid for the four islands, which comprise about 81 percent of the state's population. The state currently gets 13 percent of its energy from coal imports and 77 percent from outside oil sources.

Under the new plan, Hawaii would get a third of its energy from imported oil in 2030, with a ban on adding net fossil-fuel-based capacity.

That will help the state meet possible legislation mandating that 40 percent of electric power come from renewable resources by 2030 - a doubling of the renewable portfolio standard requirement rolled out in 2004, Gov. Linda Lingle said yesterday at a press conference attended by U.S. Sen. Daniel Inouye.

“;It took much political courage and much business courage to do this,”; Inouye said. “;It's not going to be easy, but we must do it. Out of all the 50 states in the union, our state is the most vulnerable. We have no fossil fuel, so we have to manufacture our own energy.”;

Major Agreement Opens The Door For Hawaii's Renewable Energy Source

 

With abundant power available from wind, sun and ocean, renewable energy experts have been very frustrated by Hawaii's continuing dependance on foreign oil.

 

[ Watch ]

 

 

 

 

  Oahu could see near-term renewable energy projects adding up to 235 megawatts of renewable energy, HECO said.

Plans for an underwater cable as well as an expansion of geothermal energy projects are also being considered for the Big Island, where utility parent Hawaiian Electric Industries Inc. operates Hawaiian Electric Light Co., but waters surrounding Kauai are too deep to connect Oahu to the power grid of the Kauai Island Utility Cooperative, said Robbie Alm, HECO senior vice president for public affairs.

The plan will integrate as much as 1,100 megawatts of additional renewable energy on HEI grids, 700 megawatts of which will be implemented within five years into HECO's current overall capacity of 1,700 megawatts. The average system peak on Oahu is 1,200 megawatts, with 500 for reserve use.

“;Buying energy from new renewable energy projects with prices that are not tied to the price of oil will also help provide more stable energy costs,”; said Constance Lau, president and chief executive officer of Hawaiian Electric Industries, which also oversees Hawaiian Electric Co. on Oahu and Maui Electric Co. on Maui, Molokai and Lanai.

Lau said she was flying to New York yesterday to discuss the plan with investors and ratings agencies. Profit for HEI's electric utility operations jumped by more than 1.5 times in the second quarter ending June 30 to $27.4 million from $10.7 million last year. Utility revenue rose 40 percent to $688.1 million.

Funding for the state-owned cable would likely come from private investment, utility ratepayers and state and federal grants and loans. No time line or cost was disclosed, but more details are expected in the spring, Lingle said. HECO would be responsible for land-based substations and infrastructure improvements for the system.

Several developers have already proposed large-scale wind farms projects on Lanai and Molokai, ranging in size of up to 400 megawatts each. HECO will provide $100,000 in funding to model the Molokai grid, while a similar program is already under way on Lanai through the state Department of Energy.

“;It will require focused and upfront investment in order to get Hawaii off its dependence on imported oil, but in the long term will lead to significant reductions in energy costs to Hawaii's consumers,”; said Ted Liu, director of the state Department of Business, Economic Development and Tourism. “;There's a lot of costs associated with doing nothing.”;

Liu said he expects a range of high-paying jobs being added to the isle market as larger companies invest in local renewable energy projects.

Under the expanded initiative, HECO customers could install solar water heating systems without having to pay money upfront, but instead pay through savings on electric bills, with a goal of 2,500 annual installations on existing homes, Lingle said. Customers will also be able to lower their rates by using electricity at off-peak times using advanced metering systems.

Catherine Awakuni, executive director of the state Division of Consumer Advocacy, said the plans will help utility ratepayers by ending a utility business model based on increasing sales rather than encouraging efficiencies in energy use.

“;Using the best information that we have today, we are balancing the rate impact to consumers against the cost of providing reliable service and a secure energy future,”; Awakuni said.

HECO and the state consumer advocate have agreed by April to explore capping rates for those unable to pay the full cost of electricity. By July, HECO will publish in advance what customers will pay in renewable power and how much of any kind of renewable power they will be purchasing.