The document discusses Hawaii's transition from a fossil fuel-dependent energy system to a renewable energy-based one, highlighting the state's heavy reliance on imported crude oil and the high electricity costs associated with it. It outlines Hawaii's aggressive clean energy goals, including reaching 70% clean energy by 2030, and the various initiatives and policies in place to support this transition, such as the Hawaii Clean Energy Initiative and advanced grid technologies. Challenges such as integrating renewable energy, managing grid stability, and addressing the economic impacts of transitioning to renewables are also examined.

1. Hawaiian Islands Energy Systems
Transitioning to Renewable Energy
Isolated Power Systems, Connect 2015
Richard Rocheleau
Hawaii Natural Energy Institute
School of Ocean and Earth Science and Technology
University of Hawaii at Manoa
18 November, 2015

2. 2 2

3. Hawaii Today
Primary energy: 90% fossil fuel, most of it crude oil refined
Electricity: 80% fossil fuel, most of it refined crude oil
ELECTRICITY 32%
JET FUEL 34%
GASOLINE/ 27%
MARINE FUEL
OTHER 7%
3

4. Crude Oil Supplies to Hawaii
100% of the
crude oil for
the State is
imported
Hawaii Department of
Business, Economic
Development &
Tourism
4
Approximately 75% of oil from foreign countries
Energy Insecurity

5. Oil Drives Electricity Costs and Volatility
Source: Hawaiian Electric Company
Hawaii ranks #1 in U.S.
electric energy costs:
46.4 cents/kWh Molokai
46.3 cents/kWh Lanai
42.2 cents/kWh Hawaii
37.8 cents/kWh Maui
34.6 cents/kWh Oahu
(Avg. residential rates for 2013)
11 - 12 cents/kWh U.S. avg.
High Cost of Service
5
Fuel costs make up more than 70 percent of
the typical bill

6. A Paradigm Shift Is Required
 Energy insecurity > Energy security
 Economic drain > Economic engine
 Price volatility > Price stability
 Environmental harm > Environmental
compatibility
6
How do we change our energy system at reasonable cost
without reducing reliability and stability of the system?

7. Opportunity for Sustainability
in Hawaii is Abundant
7Renewable Energy as the Driver for New Energy System

8. Hawaii has Aggressive Clean Energy Goals
• Highest RPS target in the
United States (45% by 2030)
• State and federal tax incentives
• Net metering
• Feed in tariffs
Strong Policies
8
Hawaii Clean Energy Initiative (HCEI)
The State of Hawaii, US DOE, and local utility launched HCEI in January
2008 to transform Hawaii to a 70% clean energy economy by 2030:
• Increasing Hawaii’s economic and energy security
• Fostering and demonstrating Hawaii’s innovation
• Developing Hawaii’s workforce of the future
• Becoming a clean energy model for the U.S. and the world
2008
2009
- 2015 Policy Evolution Reflecting
Market Realities
• New RPS targets – 100% by 2045
• Changes to net metering
• Community solar
• Changes to tax incentives

9. Isolated Grids Complicates Renewable Integration
1300MW
80MW
5MW
270MW
197MW
• Resources not aligned with
population
• Wind and solar dominating
development (nameplate capacity)
5MW
• Grid capacity from 5 to 1300MW
• Over 70% of electricity use is on
Oahu
Issues
• System: Reserves, curtailment, reliability, stability
• Distribution: Power quality, voltage transients
• Cost: Increased system complexity and operations
System and distributed resources have to work together
4

10. Hawaii Natural Energy Institute (HNEI)
• Organized Research Unit in School of Ocean and Earth Science
and Technology, largest graduate education and research
organization at University of Hawaii
• 2007 - Established in statute to work with state government
organizations to reduce dependence of fossil fuels
• Diverse staff (90)- engineers, scientists, lawyers, postdocs,
students
• Primary funding from
• Dept of Defense
• US Dept of Energy
• State of Hawaii

11. Grid Systems Technologies Advanced Research
Team
11
• Interdisciplinary team of faculty, professionals, post-doctoral fellows and
students at HNEI (includes over 100 years cumulative utility and regulatory
experience)
• Serves to integrate HNEI efforts across other technology areas: biomass and
biofuels, fuel cells and hydrogen, energy efficiency, renewable power
generation
• Expertise includes grid modeling and analysis; smart grid and micro-grid
R&D; application of grid storage; power system planning and operations;
energy policy
• Strong partnerships with Hawaii, national and international organizations
(especially Asia-Pacific)
Established team to develop, test and evaluate advanced grid architectures,
enabling policies, and new technologies and methods for effective integration
of renewable energy resources and power system optimization

12. HAWAII ISLAND INTEGRATION STUDIES
System and distribution level analysis
supporting decision making and project
development
SMART AND MICRO-
GRID DEMONSTRATIONS
• Maui Smart Grid Project
• Japan-US Smart Grid
Demonstration Project
• Smart Grid Inverter Project
• Coconut Island microgrid
• Molokai microgrid
opportunity
TECHNOLOGY VALIDATION
• Grid-scale storage
• Photovoltaics
• Small wind systems
• Advanced grid controls
• Ocean energy systems
• Demand response technology
• Energy efficiency
Inform Policy
Work-force Training
Regulatory Infrastructure
Integration
12

13. PEAKING
•Most expensive units
•Quick response to generation
shortfall
PEAKING
•Most expensive units
•Quick response to generation
shortfall
CYCLING
•Cycled on and off as necessary
•Must be committed in advance
CYCLING
•Cycled on and off as necessary
•Must be committed in advance
BASELOAD
•Usually the most economic
•Fixed operating schedules
BASELOAD
•Usually the most economic
•Fixed operating schedules
Island Grid Operation?
Thermal unit characterization
A WEEK OF TYPICAL OPERATION
MW
BASELOAD
CYCLING
PEAKING
PV WIND
13

14. Low renewable penetration
High renewable penetration
MW
MW
Curtailment when
thermal units cannot
meet reserve
requirements
A WEEK OF OPERATION
System Dispatch with Renewables
Increased cycling of
thermal units to
accommodate
intermittency
Generation-load balance
essential for frequency
control
14

15. 24 Hour Load Profile with High Renewable
Penetration (example)
210 MW
ramp in 3-
hours
440 MW
ramp in 3-
hours290 MW
ramp in 3-
hours
Leads to
curtailment
Potential Issues: Curtailment, mid-day transients (stability),
reliability of evening capacity, ramp rates
Potential Issues: Curtailment, mid-day transients (stability),
reliability of evening capacity, ramp rates
15

16. • Postulate new energy systems and analyze impact on production cost,
curtailment, stability, and reliability
• Different resource mixes (wind, central and distr PV, other)
• Alternative fuels (LNG, hydrogen, biofuels)
• Changes due to load and load-profiles (end-use efficiency, alt transportation)
• Grid configuration (independent or connected)
• Identify and analyze mitigation methods
• Advanced controls, unit cycling, reduced minimum run, improved forecasting
• Energy storage, smart grids, advanced inverter technology, microgrids,
demand response, integration with transportation
Approach to Power System Planning
Production Cost
Modeling
Power Flow
Analysis
Mitigations
Mitigating technologies help integrate renewable energy but may
not reduce overall load. Their cost and value depends on the
details of grid operation
16

17. Models for Multiple Purposes and Timescales
Production Cost
Modeling
Cost / Benefit
Analysis
Power Flow
Analysis
Mitigations
• Production Cost Modeling
• Hour-by-hour economic dispatch of all generation
• Follow grid operating rules and PPA agreements
• System Reliability model
• Adequacy of generators to meet load (most challenging at evening peak)
• Power Flow Analysis (dynamic simulation)
• Stability of grid during contingency and large ramp events (voltage and
frequency)
• Analysis of Cost and Long-term Impact on State
• Transparent analysis of cost to add renewables and upgrade grids
17

18. Good Data is Critical
• Operating characteristics of utility generators including purchased power (heat
rates, ramping capability, minimum run constraints, controls, outage rates, etc.)
• Characteristics of transmission and distribution networks
• Utility operating rules (must run, cycling, loading order, reserve requirements, etc.)
• Forecasts (load, load shape, fuel price, etc.)
Utility data updated regularly to assure accuracy of grid model
• Wind maps validated against meteorological tower data and wind farm operations
• Hourly and sub-hourly solar data sets developed using mesoscale atmospheric
models calibrated with sensors spread over Maui and Oahu
• UH Atmospheric Sciences Dept developing multiyear assessments to evaluate
yearly resource variability
Renewable Resources – spatial and temporal models of wind and solar
NDA’s signed where necessary to obtain data while assuring that
reporting of results is not constrained
18

19. Grid Changes Enable Renewable
Integration
1
9
Increased renewable integration will require grid investment
and unit modifications
Increased renewable integration will require grid investment
and unit modifications
Oahu Only Growth
Gen-Tie Only
Maui Grid-Tie Only
Gen-Tie and Maui Grid-Tie
Source: Hawaii RPS Study
Enablers
• Flexible thermal fleet
–Faster quick starts
–Deeper turn-down
–Faster ramps
• Wind forecasting
• More spatial diversity of
wind/solar
• Grid-friendly wind and solar
• Demand response ancillary
services
• Energy storage and electric
vehicles

20. The Economics of Renewable Integration
Analysis of Production Cost Savings
2
0
Production
Cost
PPA
Cost
Annual
Savings
Baseline with
Renewables
New Thermal Units/
Energy Efficiency/
Demand Response
Savings from wind and solar may be partially or wholly offset by
necessary grid upgrades
Savings from wind and solar may be partially or wholly offset by
necessary grid upgrades

21. Initial Study of Higher Penetration
• 2016 Baseline (125 MW wind, 150 MW central solar, 400 MW
distributed solar)
• Evaluate baseline plus three scenarios providing ~ 50% total
available energy (Oahu) from wind and solar
• High solar: 1394 MW additional solar
• High wind: 902 MW additional wind
• Mixed: 722 MW additional solar, 435 MW additional wind
• Use curtailment to examine mitigation needs
21
Estimate impact of very high penetrations of wind and solar
including curtailment (Oahu only)

22. Wind and Solar Resources
High day-to-day variation
Poweroutput
WindSolar
Sorted day in the year 22
Day in the year
Sorted day in the year
Day in the year
Poweroutput

23. Base: 0 GWh High solar: 1061 GWh
Mixed: 487 GWh High wind: 519 GWh
Total annual curtailment:
Sorted day in the year
Curtailment/GWh/day
Base Solar Wind Mixed
30
15
0
%Curtailed
23
Curtailment
Based on modified grid, 50% W&S availability on Oahu
Day to day curtailment
varies widely
Solar – larger (2x wind) but more uniform day to day

24. • Solar: Large mid-day peak, none beyond midday
• Wind: Curtailment can occur at all hours
• Mixed: Reduced daytime peak, nighttime curtailment
avoided
Curtailment by Hour of Day (ave)
24Hour in the day
Curtailment/GWh
Average Hourly Curtailment

25. 25
Technology
• Battery Energy Storage – Evaluation of grid scale BESS for grid ancillary services
(ONR, USDOE); lab testing to validate lifetime expectations
• Smart Grid Inverter Project – Development and testing of advanced inverter
functionality and communications in a smart grid to manage power and power
quality at high PV penetration (ONR, USDOE, SOH)
Microgrid Demonstrations
• Molokai Renewable Microgrid – Integration of grid scale battery and distributed
generation controls to allow very high penetration of intermittent distributed
resources (ONR, MECO)
• Coconut Island Renewable Microgid – Small renewable microgrid for testing of
emerging technologies and advanced controls, in collaboration with NRL (ONR)
Smart Grid Demonstration
• Maui Smart Grid Project – Demonstration of integrated control of distributed
resources and energy storage for peak demand reduction (USDOE, ONR)
Technology Development and Demonstration

26. photos courtesy of Altairnano
Grid Scale BESS Projects (HNEI)
Haw‟i 10 MW Wind farm at Upolu Point Hawaii Island
(1MW)
• Frequency regulation and wind smoothing
Molokai Secure Renewable Microgrid (2MW)
• Operating reserves, (fault management), frequency
regulation, power smoothing, and peak shifting
Cambell Park industrial feeder with high penetration
(1MW)
• Power smoothing, voltage and VAr support, and
frequency regulation
2
• Assess performance and lifetime of the BESS
• Conduct experiments to optimize algorithms for high value grid
applications
HNEI is testing cells in the laboratory to determine
expected lifetime under real world conditions

27. Hawaii Island BESS
• Fast response 1MW, 250kW-hr,
nanostructured lithium-titanate BESS on a
150MW grid
• To date, over 3,000 MWh passed through
BESS – equivalent to 6000 full charge-
discharge cycles
• No significant degradation to date
7
Reduces frequency variability by up to 40% Wind smoothing helps meet PPA
requirements
Results have helped convince reluctant utility of value

28. 28
OBJECTIVES
 Develop and deploy advanced Smart Grid Inverters
 Utilize Inverter Management Control Software (IMCS)
 Utilize standards-based controls and communications
 Employ detailed distribution modeling and high-resolution
field data to develop advanced inverter settings
Research Project lead
• Project oversight, management and direction
• Smart Inverter application design; performance and data analytics
Inverter technology leads
• Leads for communications integration into inverter
• Develop control functionality in inverter; implement control programs sent from IMCS
Communications Technology Lead
• Mesh Communication System; IMCS
• Customer Engagement via PV Customer Portal
Co-Services lead
• Sales, marketing, installation, project management, customer service
Host utility in Washington DC
• Inverter operations for field pilot; performance evaluation
Host utility in Hawaii
• Inverter operations for field pilot; performance evaluation
Inverter Testing Facility
• Site of functional requirements and inverter testing
Co-Services lead
• Sales, marketing, installation, project management, customer service

29. Distribution Circuit PV Penetration
Grid Saturation?
29
Utility
Circuits >100% Daytime
Minimum Load
Total Circuits % of Total
HECO 127 465 27%
HELCO 28 136 21%
MECO 25 136 18%
KIUC 0 35 -
Total 180 772 23%
Circuits where generation from
distributed solar is at or above
100% of daytime minimum load
Hawaiian Electric recently announced a 250% distribution
circuit penetration target for distributed solar
(Jan. 20, 2015; Docket No. 2014-0192)

30. Test Remotely Controllable Functionality
 Voltage support functionality
• Leveraging inverter settings and setting response curves that make the smart inverter
a voltage support device (via Volt-VAR or Volt-Watt manipulation)
 Power curtailment
• Reducing power output of inverters (to different levels) via a command sent by the
utility
 Frequency support functionality
• Leveraging inverter settings and setting response curves that make the smart inverter
a frequency support device (via Frequency-Watt manipulation) .
 Remotely set trip limits (and „ride through‟ testing)
• Setting frequency and voltage trip limits remotely and / or testing of inverters to remain
online (‘ride through’) at various levels of off-frequency or off-voltage operation
• Note: While this functionality is factory settable in some inverters, it is not generally
available as a remotely settable parameter. Concern raised that it may cause an
inverter to be IEEE-1547 non-compliant and impact the UL listing status.
 Coordinated and remote “clustered control” of multiple inverters

31. Development and Demonstration of Smart Inverters
for High-Penetration PV Applications
31

32. HNEI Microgrid and Remote Island Grid Projects
Coconut Island is an opportunity
to test advanced technologies
and microgrid control strategies
for high reliability loads in a
challenging marine environment
UH Mānoa campus is
an opportunity to
evaluate advanced
systems for energy
management,
efficiency and control
of distributed energy
resources aimed at
energy cost reduction
Moku o Lo’e Microgrid
(Coconut Island)
University of Hawaii –
Mānoa Campus Microgrid
MOLOKAI
~ 2.5 MW of Distributed
Rooftop PV
Molokai is an
opportunity to
address very high
levels of distributed
PV while
maintaining grid
reliability and
resiliency
32
500 kW Grid
5 MW Grid25 MW Grid
Molokai Island Grid

33. Moku o Lo’e DC Microgrid
(Coconut Island)
Test advanced clean energy technologies and integrated control strategies such as:
Coconut Island offers a unique opportunity
for technology and material testing:
• Scale: ~0.5 MW grid connected microgrid
• UH owned/controlled island facility
• High penetration of distributed renewable
energy resources (particularly rooftop PV)
• Marine research laboratory with critical loads
and high energy reliability needs
• Persistent coastal winds result in a highly
corrosive marine environment yielding a
micro-climate representative of harsh island
conditions
• DC distribution, motors, & lighting
• Photovoltaic systems
• Small-scale wind turbines
• Energy storage systems
• Fuel cells
• Alternative fuel vehicles (EV car/boat)
• Building controls & energy efficiency
• Load management
• Advanced communications and
microgrid control
• And more ….
33

34. Background
• University of Hawaii Institute of Marine Biology utilizes the
island to conduct marine research with life support equipment
for the marine organisms under study and other critical energy
needs
• Service interruptions result in significant efforts to get systems
running again and poses risks to active research
• Coconut Island’s peak system demand is approximately 500
kW
• Current system includes 200 kW of PV installed on rooftops at
present (per PPA with Solar City) and two diesel generators
(200 kW and 240 kW) on island for emergency back-up power
to select load centers
5

35. Project Objectives
• Reduce electricity costs
• Understand and address power quality issues
• Implementation of renewable energy technologies
• Provide reliable service to select critical loads in the event
of loss of grid power while minimizing diesel fuel use
• Demonstrate the use and value of DC distribution systems
• Demonstrate the use and value of a microgrid control
system
• Fuel cell test – PV, water source (fresh / salt), O2 usage
• Assess salt laden coastal environment impacts on
microgrid equipment
6

36. 36

37. 37
Minimize use &
Maximize efficiency

38. Molokai Sustainable Development Demonstration
5MW
 System-wide battery storage system for reliability
 Grid stabilization for high penetration distributed PV
 Managing system frequency and voltage
 PV and battery system for critical load site
 Water pumping station
‒ Secure water supply in event of power outage
 Molokai High School
‒ On-site generation to support disaster shelter
(disaster preparedness)
 Microgrid system for small and remote locations
 Support self-sufficiency utilizing microgrid controller
 Optimizing grid operation with diverse and distributed
energy resources
38
Objective: Increase use of renewables while reducing
the operating cost of electricity on the island.

39. HNEI is Key Performer for Technology Research and
Evaluation in Support of ONR‟s APTEP
39
Asia Pacific Technology and Education Partnership (APTEP)
promotes commerce and partnerships in the Asia-Pacific region
through advancements in alternative energy research, technology
development and education.
• Research and development
• Testing and evaluation of
emerging energy technologies
• Integration of renewable energy
systems
• Energy analysis
• Contribute to STEM and
workforce development

40. MAHALO
For more information, contact:
Rick Rocheleau
Hawaii Natural Energy Institute
1680 East-West Road, POST 109
Honolulu, Hawaii 96822
Office: (808) 956-8346
Mobile: (808) 389-9944
E-mail: rochelea@hawaii.edu
Website: www.hnei.hawaii.edu