Hawaiian Electric: Helping our State Achieve the Goals of the Hawaii Clean Energy Initiative


Published on

Peter Rosegg of Hawaiian Electric Company spoke about HECO, the Hawaii Clean Energy Initiative, and the challenges HECO faces in integrating renewable energy into the grid. Slides from the REIS seminar given at the University of Hawaii at Manoa on 2009-09-10.

Published in: Education, Technology, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • You will remember that in general electricity can not be stored. But one way to hold on to renewable energy for when it is most needed is called Pumped Storage Hydro. Shell WindEnergy believes they can add a PSH facility to the wind farm at Ulupalakua Ranch to make the wind energy even more dependable and more valuable.
  • Hawaiian Electric: Helping our State Achieve the Goals of the Hawaii Clean Energy Initiative

    1. 1. Hawaiian Electric Company Hawaii Clean Energy Initiative Building a Sustainable Hawaii Seminar in Renewable Energy and Island Sustainability September 10, 2009
    2. 2. Hawaii’s Energy Today <ul><li>Dependent on imported fossil fuel, mostly oil, for 90 percent of our primary energy </li></ul><ul><li>Security Challenges </li></ul><ul><li>Economic Challenges </li></ul><ul><li>Environmental Challenges </li></ul>
    3. 3. Our Task Reduce our dependence on imported oil How Can We Do This? While we maintain. . . Security Comfort & Convenience Mobility And still do not want to pay more than we have to?
    4. 4. Hawaii Clean Energy Initiative <ul><li>What Does It Mean? </li></ul><ul><li>For Our Customers </li></ul><ul><li>For the Utility </li></ul><ul><li>For Hawaii </li></ul>Road map to a preferred energy future
    5. 5. Goals of HCEI <ul><li>Achieve 70% clean energy by 2030 </li></ul><ul><ul><li>30% energy efficiency </li></ul></ul><ul><ul><li>40% renewable energy </li></ul></ul><ul><li>Hawaii as model of clean energy economy </li></ul><ul><li>Diversify supply to increase security </li></ul><ul><li>Economic opportunity at all levels </li></ul><ul><li>Foster innovation in technology, finance, organization & policy </li></ul><ul><li>Create clean energy economy workforce </li></ul>
    6. 6. HECO Energy Efficiency <ul><li>Energy$olutions for Home & for Business </li></ul><ul><li>13 years -- $97 million in rebates/incentives </li></ul><ul><li>Over $500 million savings for customers </li></ul><ul><li>Reduced demand = 169 MW </li></ul><ul><li>Oil use avoided = 1.6 million barrels/year </li></ul><ul><li>CO 2 emissions avoided = 864 m tons/year </li></ul><ul><li>Highlights:   •   > 1.8 million CFL bulbs   •   > 50,000 solar water heaters   •   > 39,000 Energy Star ® appliance rebates </li></ul>
    7. 7. Hawaii Energy Efficiency Program <ul><li>July 1, 2009 taken over by (Science Applications International Corporation) </li></ul><ul><li>Fortune 500 ® scientific, engineering & technology company </li></ul><ul><li>45,000 employees; 400 in Hawaii </li></ul><ul><li>Customers:Department of Defense,  </li></ul><ul><li>intelligence, Department of Homeland Security, select commercial markets </li></ul><ul><li>Annual revenues $10.1 B in FY 2008 </li></ul>
    8. 8. Hawaii Energy Efficiency Program <ul><li>Energy efficiency & renewable energy </li></ul><ul><li>Funded by utility rate payers </li></ul><ul><li>Financial incentives, market outreach, education, behavior change </li></ul><ul><li>All market sectors: </li></ul><ul><ul><li>Residential </li></ul></ul><ul><ul><li>Commercial </li></ul></ul><ul><ul><li>Industrial </li></ul></ul><ul><ul><li>Government </li></ul></ul>
    9. 9. Load Control <ul><li>Hawaiian Electric continues Energy Scout Load Control Program </li></ul><ul><ul><li>39,000 residential customers </li></ul></ul><ul><ul><li>44 commercial customers </li></ul></ul><ul><li>Providing 52 MW peak interruptible load </li></ul>
    10. 10. In Your Home or Business <ul><li>Smart Meters </li></ul><ul><li>More Solar Water Heating & PV </li></ul><ul><ul><li>SolarSaver (pay as you save) </li></ul></ul><ul><ul><li>PV Host (rent your roof) </li></ul></ul><ul><ul><li>Net energy metering (NEM) </li></ul></ul><ul><li>More Energy Efficiency (EE) </li></ul><ul><ul><li>EE portfolio standard </li></ul></ul><ul><ul><li>Continued promotions & rebates </li></ul></ul>
    11. 11. For the Utility <ul><li>New model for business and regulation </li></ul><ul><li>Focus on service and efficiency, not sales </li></ul><ul><li>Opportunities </li></ul><ul><ul><li>Retire least efficient oil-fired units </li></ul></ul><ul><ul><li>Upgrade to smart grid for 21st century </li></ul></ul>
    12. 12. <ul><li>Utility committed to aggressive new RE goals by 2030 </li></ul><ul><ul><li>1,100 MW of new RE energy </li></ul></ul><ul><ul><li>40 percent/2030 RPS </li></ul></ul><ul><li>Pledge to smooth purchase power agreement process </li></ul><ul><li>Feed-in Tariff (FIT) to make it easier to develop & sell renewable energy to utilities </li></ul>RE Developers & Energy Business
    13. 13. For Hawaii <ul><li>Greater energy security </li></ul><ul><li>Reduced GHG emissions </li></ul><ul><li>More money stays home creating economic opportunities & jobs: </li></ul><ul><ul><li>Undersea cable </li></ul></ul><ul><ul><li>Wind farms </li></ul></ul><ul><ul><li>Solar </li></ul></ul><ul><ul><li>installations </li></ul></ul><ul><ul><li>Agricultural energy </li></ul></ul><ul><ul><li>New RE plant construction </li></ul></ul>
    14. 14. How Can We Do It? <ul><li>Large & mid-size wind projects </li></ul><ul><li>Biofuels </li></ul><ul><ul><li>Waste-to-energy </li></ul></ul><ul><ul><li>Biomass; land crops & algae </li></ul></ul><ul><ul><li>for liquid fuels </li></ul></ul><ul><li>Solar power </li></ul><ul><ul><li>Customer sited & utility scale </li></ul></ul><ul><ul><li>…more </li></ul></ul>
    15. 15. How Can We Do It? <ul><li>Geothermal </li></ul><ul><li>Ocean power </li></ul><ul><ul><li>Seawater A/C </li></ul></ul><ul><ul><li>Wave Energy </li></ul></ul><ul><ul><li>OTEC </li></ul></ul><ul><li>Next big thing? </li></ul>
    16. 16. ‘Interisland Wind’ <ul><li>Wind farms on Lanai & Molokai </li></ul><ul><ul><ul><ul><ul><li>Castle & Cooke & First Wind Hawaii each agree to initial 200 MW projects </li></ul></ul></ul></ul></ul><ul><li>Hawaiian Electric planning facilities & operations to integrate 400 MW of wind power on Oahu </li></ul><ul><li>State of Hawaii to plan, permit & contract building of inter-island cable </li></ul><ul><ul><ul><li>Similar submarine cables in service (Cross Island Cable, many others) </li></ul></ul></ul>
    17. 17. Transportation solutions <ul><li>Initiatives must include: </li></ul><ul><ul><li>mass transit – all modes </li></ul></ul><ul><ul><li>more fuel-efficient vehicles </li></ul></ul><ul><ul><li>cleaner alternative fuels </li></ul></ul><ul><ul><li>more personal mobility (walk, bike) </li></ul></ul><ul><li>Rapid adoption of </li></ul><ul><li>Plug-in Electric Vehicles </li></ul>
    18. 18. Electrifying transportation <ul><li>1/3 of imported oil in Hawaii used for ground transportation </li></ul><ul><li>Driving an electric vehicle (hybrid or plug-in) is cheaper ( ≈1/3 cost) and cleaner (less CO 2 ) than internal combustion engine vehicle </li></ul><ul><li>Hawaiian Electric working </li></ul><ul><ul><li>Better Place; Phoenix Motorcars; Idaho National Laboratory (hybrid conversion to plug-in hybrid) for HECO and MECO; other EV and equipment manufacturers </li></ul></ul>
    19. 19. Your Bill <ul><li>Advanced metering to give you more control </li></ul><ul><li>Time-of-use rates for off-peak savings </li></ul><ul><li>Greater savings: </li></ul><ul><ul><li>Solar, energy efficiency & conservation </li></ul></ul>
    20. 20. Bottom Line <ul><li>Bills more predictable than with oil </li></ul><ul><li>Total energy cost (electricity & transportation) lower using RE in place of oil & gasoline </li></ul><ul><li>Hawaii becomes national leader </li></ul><ul><ul><li>Increasing energy independence </li></ul></ul><ul><ul><li>Reducing fossil-fuel use </li></ul></ul><ul><ul><li>Limiting greenhouse gases </li></ul></ul>
    21. 21. Opportunity to Lead <ul><li>Island people under- stand sense of limits </li></ul><ul><li>Island people have strong environmental empathy </li></ul><ul><li>Hawaii has trade winds, strong sunlight, other RE resources </li></ul><ul><li>Hawaii can model a low-carbon and totally modern lifestyle </li></ul>
    22. 22. What We Need <ul><li>Leadership </li></ul><ul><li>Laying down our arms </li></ul><ul><li>Sense of urgency </li></ul><ul><li>Speaking the truth </li></ul>
    23. 23. Two Simple Words <ul><li>LESS </li></ul><ul><ul><li>Energy efficiency, conservation, wise use of resources </li></ul></ul><ul><li>LOCAL </li></ul><ul><ul><li>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 </li></ul></ul>
    24. 24. <ul><li>Hawaii’s Energy Future www.hawaiisenergyfuture.com </li></ul><ul><li>Hawaiian Electric Company </li></ul><ul><li>www.heco.com </li></ul><ul><li>Hawaii Clean Energy Initiative www.hawaiicleanenergyinitiative.org </li></ul>Learn More
    25. 25. Learn More – cont. <ul><li>Hawaii energy data http://hawaii.gov/dbedt/info/energy </li></ul><ul><li>Interisland Wind Project www.interislandwind.com </li></ul><ul><li>Hawaii Energy Efficiency Program www.hawaiienergy.com </li></ul><ul><li>Better Place www.betterplace.com </li></ul>
    26. 26. <ul><li>Hawaiian Electric Company Basics </li></ul>
    27. 27. Who is HECO? <ul><li>Locally owned and operated </li></ul><ul><li>Regulated by government </li></ul><ul><li>400,000 customers (Oahu, Maui County, Hawaii) </li></ul><ul><li>2,000 employees (HECO, MECO, HELCO) </li></ul><ul><ul><li>1,200 IBEW union members </li></ul></ul><ul><ul><li>800 non-union </li></ul></ul><ul><li>19,000 Hawaii shareholders </li></ul><ul><li>Over $2 billion in assets </li></ul><ul><li>Over $169 million in taxes a year (federal/state) </li></ul>
    28. 28. Who uses electricity? <ul><li>295,000 residential customers: </li></ul><ul><li>2 million Megawatt hours/year </li></ul><ul><li>33,000 commercial/ government/ military customers: </li></ul><ul><li>5.5 million MWh/year </li></ul><ul><li>Military alone: </li></ul><ul><li>1.2 million MWh/year </li></ul><ul><li>(15.4% of electricity on Oahu) </li></ul>
    29. 29. Honolulu Energy Source: Oil Firm Generation: 113 MW AES - Hawaii Energy Source: Coal Firm Generation: 180 MW Kalaeloa Partners Energy Source: Oil Firm Generation: 180 MW Electricity generation on Oahu Waiau Energy Source: Oil Firm Generation: 499 MW Kahe Energy Source: Oil Firm Generation: 651 MW H-Power Energy Source: Municipal Solid Waste Firm Generation: 46 MW
    30. 30. Hawaiian Electric system Generation (Power plants) Trans- mission Lines Trans- mission Sub- stations Sub Trans- mission Lines Distribution Substation Distribution & Service
    31. 31. Growing electricity use 1970 - 2005 Population Growth GSP Growth Electricity/per capita Growth 75% 139% 161% Source: DBEDT Energy Resources Coordinator’s 2006 Annual Report
    32. 32. Daily peak drives planning <ul><li>Daily demand peak </li></ul><ul><li>usually from 5 to 9 pm, determines how much electric generation is needed </li></ul>Baseload: 24/7 Cycling Peak load
    33. 33. Our dependence on oil <ul><li>We depend on imported fossil fuel (mostly oil, some coal) for over 90% of all energy – jet fuel, synthetic natural gas, gasoline, and electricity </li></ul><ul><li>Oil has challenges: </li></ul><ul><ul><li>Security of supply </li></ul></ul><ul><ul><li>High cost </li></ul></ul><ul><ul><ul><ul><li>HECO’s oil price up </li></ul></ul></ul></ul><ul><ul><ul><ul><li>171% from 1996 to 2006 </li></ul></ul></ul></ul><ul><ul><li>Environmental impact </li></ul></ul><ul><ul><ul><ul><li>Clean air </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Clean water </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Global warming   </li></ul></ul></ul></ul>
    34. 34. 49% of imported crude oil is from Middle East or Islamic countries
    35. 35. Refining oil <ul><li>Light, quality products first </li></ul><ul><li>Diesel </li></ul><ul><li>Gasoline </li></ul><ul><li>Residuals (bunker and LSFO) </li></ul><ul><li>Star-Bulletin graphic </li></ul>
    36. 36. Oil is refined for many uses Each barrel is refined first for jet fuel, then gas and marine fuel. What’s left, the goop called “residual,” is used to create electricity. An “integrated” energy system
    37. 37. Two myths about renewable energy <ul><li>“ There is a ‘ Silver Bullet.’” </li></ul><ul><li>‘ OTEC is all we need.’ </li></ul><ul><li>‘ One big solar farm could power all Oahu.’ </li></ul><ul><li>‘ Nuclear energy is the answer.’ </li></ul><ul><li>“ Wind, sun are free; RE should cost less than fossil fuel energy.” </li></ul><ul><li>At first no. In the long run, as oil gets more expensive, RE prices should be more stable -- and probably cheaper. </li></ul>
    38. 38. Energy Storage <ul><li>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. </li></ul>
    39. 39. Pumped-storage hydro <ul><li>Pump water to upper reservoir during non-peak period (overnight) </li></ul><ul><li>Hydro-electric operation during peak demand period </li></ul><ul><li>Overall efficiency about 70% </li></ul><ul><li>Turns irregular ‘as available’ renewable energy into firm energy for peak periods </li></ul>
    40. 40. <ul><li>Biofuels </li></ul>
    41. 41. Biodiesel <ul><li>Higher energy yield than </li></ul><ul><li>ethanol </li></ul><ul><li>Made from vegetable or animal oil: palm, jatropha, soybeans, peanuts, canola, kukui, coconut -- ALGAE </li></ul><ul><li>Feed stock can be imported or grown locally </li></ul>
    42. 42. <ul><li>Miscellaneous </li></ul>
    43. 43. Greening our existing assets <ul><li>New Unit at Campbell Industrial Park </li></ul><ul><ul><li>110 MW peaking unit -- 2009 </li></ul></ul><ul><ul><li>RFP for 100% biofuel supply </li></ul></ul><ul><li>Longer-Term Initiatives </li></ul><ul><ul><li>Studying biofuels for steam boilers </li></ul></ul><ul><ul><li>Planning algae for biodiesel feed stock demonstration using power plant CO 2 </li></ul></ul>
    44. 44. Thank you [email_address] 808-543-7780