Curtis_Distributed Generation_Report

Life of the Land’s

Wayfinding:

Navigating Hawai`i's Energy Future

Henry Curtis

(June 2012)

Life of the Land’s Wayfinding: Navigating Hawai`i's Energy Future p. 1

Wayfinding Conclusion

The State of Hawaiì could and should generate 90% of its electricity from
distributed renewable energy resources by 2030.

Dedication

This Report is dedicated to the nearly 20,000 Americans who die each year from
fossil fuel air emissions and to the hundreds of millions of people worldwide that
climate change will displaced.

Acknowledgments

I wish to thank Doc Berry, Peggy Lucas Bond, Kat Brady, Leighton Chong, Clint
Cowen, Cory Harden, Kim Coco Iwamoto, Bob King, Kal Kobayashi, Jim Lazar, Dick
Meyer, and Steve Morgan for their suggestions, and Sally Kaye for her thoughtful
insight and superb editing of each draft of this Report.

The Author

Henry Curtis has been Executive Director of Life of the Land (LOL) since 1995. He
has a B.A. in Economics from Queens College, City University of New York. He is a
blogger1, community organizer, videographer, director, producer, peer reviewer,
moot court judge, community facilitator, and provides expert testimony on ocean
power, biofuels, energy and externalities. He has represented LOL in over thirty
regulatory proceedings before the Public Utilities Commission (PUC). He serves on
the PUC Reliability Standards Working Group (RSWG) and the RSWG Minimum Load
& Curtailment Subgroup. He is committed to Hawaiì’s energy self-reliance and
well-being and is motivated by the values of aloha àina, malama àina and his
love for Hawaiì nei.

1
http://ililani-media.com/


Preface

Energy is the glue, the connector, the life blood of all that we do. Energy powers
the economy. Energy is required for agriculture, industry and transportation. The
First Industrial Revolution (c. 1750-1850) was powered by energy from
hydroelectric sources, coal and steam. These sources also provided local power.
The Second Industrial Revolution (c. 1870-1914) benefitted from the discovery of
electricity, the modern re-discovery of petroleum, and the invention of the internal
combustion engine. Suddenly energy could be easily moved from place to place.
Over the past hundred years fossil fuel byproducts have become part of our life:
pharmaceuticals, cosmetics, paints, polymers (such as plastics), paraffin, petroleum
jelly, detergents, ammonia, pesticides and fertilizers. The energy industry has
grown into a $3 trillion/year mega-industry.

Costs / Impacts

Externalities refer to costs and impacts not reflected in the price of products. That
is, they are costs shifted from producers to society at large. The biggest externality
of all is climate change. Another key externality is environmental justice, whereby
extraction and production facilities are often located in economically challenged
communities, minority communities, and/or rural areas and then transported to
large urban (and often more wealthy) communities to consume.

Energy Disasters

Fukushima Nuclear Power Plant melt-down (March 10, 2011)

BP Deepwater Horizon Explosion (April 20, 2010)

Iraq Oil War (2003-11)

Borneo wildfires and peat soil fires set to clear land for biofuel plantations
(1997-98)

Kuwaiti Oil Fires (January and February 1991)

Persian Gulf Oil War (1990-91)

Exxon Valdez (March 24, 1989)


Cleaning Up after the Exxon Valdez: The ecological death toll included 500,000
birds, 4,500 sea otters and fourteen whales.2

Chernobyl Nuclear Accident (April 26, 1986)

Three Mile Island Nuclear Accident (March 28, 1979)

Santa Barbara oil spill (January and February 1969) which led to the first
Earth Day

Texaco’s deliberate dumping of eighteen billion gallons of toxic oil waste
products from the Lago Agrio oil field into the Ecuadorian Amazon Rainforest
(1964-90)

Tea Pot Dome Oil Leasing Scandal (1922-23)

West Virginia Monongh Mine disaster (December 6, 1907)

2
http://faculty.buffalostate.edu/smithrd/ExxonPix/cleanup.jpg


Egregious as they were, the total emissions from “big name” disasters pale when
compared with the continuous disposal of fossil fuel waste products in the air, the
water, and on the land.

For example, the planet has 90,000 oil tankers, container ships and cruise ships
that are mostly powered by bunker fuel, which has the consistency of mud and
contains sulfur levels 3,000 times that of gasoline.

New Threats

New environmental disasters are occurring with the rapid rise in the use of
renewable energy and telecommunication systems. These often involve extracting,
separating and marketing trace (rare earth) minerals.

The third greatest 20th century war (ranked by deaths) occurred in the Democratic
Republic of Congo (DRC), a large African country, one quarter of the size of the
United States. The Second Congo War (1998-2003), also known as Africa’s “World
War,” involved armies of eight nations and over twenty armed groups fighting over
rare minerals, especially coltan (colombo-tantalite), a key element essential to
many electronic devices such as cell phones, play stations and wireless devices.

Today, China is the world’s leading producer of photovoltaic panels and wind
turbines. Wind turbines require strong magnets. The most powerful commercial
magnets are made using a Neodymium-Iron-Boron alloy (Nd2Fe14B). While
Neodymium has been used for some time in hard drives, lasers and hi-fi speakers,
its use has exploded due to increasing production of wind turbines and hybrid
vehicles. Mining Neodymium is often an extremely polluting activity. Acid is poured
over large quantities of extracted materials and the waste product is dumped on
land and in waterways.

Think Globally, Act Locally

Energy policy is too important to be left to those with vested interests in short-term
profit margins. We must all be engaged in energy policy at the local level where we
can shape policy to suit local needs.


Table of Contents page

1. Introduction 7

2. Energy Terminology 14

3. Conservation/Energy Efficiency 18

4. Continuous Energy Resources 27

5. Variable Energy Resources 42

6. Batteries/Storage 54

7. Molokaì 60

8. Lanaì 69

9. Hawaiì 75

10. Maui 86

11. Oàhu 98

12. Kauaì 113

13. Niìhau 116

14. The Military 118

15. The Future 121

Acronyms 131

Glossary 134

References 150


CHAPTER 1. INTRODUCTION

Most people past a certain age can recall the significant change the Internet
Revolution (1990) made in our lives. Email, websites, and blogs are now
centerpieces for our daily connectivity.

We are now in the middle of a wireless technology revolution, featuring Smart
Phones (iPhone, Android, Windows) and Slates (iPad, Kindle Fire, Nook Tablet).

On the near horizon is the capacity to replace yesterday’s electric grid with
tomorrow’s Smart Buildings, where conservation and energy efficiency will reduce
demand, on-site renewable energy facilities will provide energy for buildings and
electricity for vehicles, and small microgrids will be used within small communities.3

This Report explores Distributed Generation (DG), which focuses on a decentralized,
community-based model of energy self-sufficiency, utilizing local solutions.

The language and nomenclature4 in this new cutting edge field evolved from older
terms like “on-site generation,” “dispersed generation,” “embedded generation”,
“decentralized generation,” and “decentralized energy.” Today, fully distributed
generation, which some call the “greatest innovation,”5 defines itself practically as
one which results in “zero-energy buildings,”6 "energy-plus buildings,”7 "freeing
energy from the grid,”8 “obsolete electric grids,”9 “No Grid,” 10 “Gridless 11” the
“Wireless Smart Grid”12 and the “Un-Grid.”13

Is there a particular place that this revolution can or should start?

3
http://www.voltinmotion.com/en/off-grid-solar-frequently-asked-questions.html
4
A list of names or terms;; the system of principles, procedures and terms related to naming.
5
Michele Amoretti, Member, Institute of Electrical and Electronics Engineers (IEEE).
http://dsg.ce.unipr.it/userfiles/file/publications/2009/10-amorettiEurocon09.pdf
6
Also known as Zero Net Energy (ZNE) Building, Net-Zero Energy Building (NZEB), or Net Zero
Building.
7
http://en.wikipedia.org/wiki/Zero-energy_building
8
Justin Hall-Tipping,
CEO at NanoHoldingshttp://www.ted.com/talks/justin_hall_tipping_freeing_energy_from_the_grid.h
tml
9
“To Grid or Not to Grid, That is the Question”, by Dana Blankenhorn, January 20, 2011;;
http://www.renewableenergyworld.com/rea/blog/post/2011/01/to-grid-or-not-to-grid-that-is-the-
question
10
http://www.nogridusa.org/grid-economics
11
Pincas Jawetz (PJ@SustainabiliTank.com)
http://www.sustainabilitank.info/2010/04/the-future-is-gridless-building-a-new-grid-for-renewable-
energy-is-nothing-less-then-having-learned-nothing-from-the-concept-of-growth-that-grounded-the-
fossil-fuels-based-inefficient-economy/
12
“Tech Development for Sustainable Communities: A Conversation with iSchool Research Fellow
Janet Marsden (2011)” http://infospace.ischool.syr.edu/2011/04/11/tech-development-for-
sustainable-communities-a-conversation-with-ischool-research-fellow-janet-marsden/
13
Simon Bransfield-Garth, http://sierraclub.typepad.com/compass/2012/03/eight19-and-the-un-
grid.html


Some think that since Pacific atolls will be the first to disappear under the business-
as-usual, greenhouse-gas-emitting, fossil-fuel model, the transformation should
start on a Pacific Island most at risk.

Common sense dictates that the most efficient place to start in any “energy
revolution” is the place with the most abundant and varied renewable energy
portfolio, coupled with the most expensive cost of electricity – that is, Hawaiì.

Within Hawaiì, Molokaì is a perfect choice - many think that Molokaì can lead
the world in grid-less telecommunications and electricity independence.

The Vortex

In the summer of 2010, Kris Mayes, Chair of the Arizona Corporation Commission14
(2009-10) spoke about “cascading natural deregulation” at an Institute of Electrical
and Electronics Engineers (IEEE) solar convention held at the Hawaii Convention
Center.

She explained that “cascading natural deregulation” means that as the cost of
renewable systems trend downward and electric rates go up, those who can leave
the grid, will leave the grid, by building or installing on-site generation. The fixed
costs associated with energy production, transmission and distribution will then
have to be absorbed by the remaining (smaller) rate base. Thus, those who remain
will see their rates go up even more, causing more people to opt out of a
centralized grid, driving the rates for those who remain even higher. Under this
scenario, companies such as HECO would be sucked down into a bottomless vortex
and ultimately fail as a viable investor-owned corporation.

As the Rocky Mountain Institute noted:

“The electric industry once again finds itself at a crossroads, confronting it with
three basic choices: the supply-side path, the distributed path, or the status quo.[]

Distributed generation poses four primary threats to the existing distribution utility
business model. First, distributed generation results in the loss of revenue under
traditional tariff structures;; the customer simply is purchasing fewer kilowatt-hours
or fewer distribution services. Second, more substantial market capture by
distributed generation can create a new class of stranded asset within the
distribution system-grid capacity no longer needed. Third, the ability of distributed
generation to enter more rapidly than centralized generation or transmission
upgrades can partially strand new capacity additions. Fourth, the combination of
the first three threats can create a "death cycle" in which the higher prices to
remaining customers induce more of them to leave this system, creating a self-
reinforcing cycle of ever-increasing unit prices.[]

14
The equivalent of the Hawaii Public Utilities Commission.


There would be many winners from the distributed resource path. Society at large
would prosper because electric service could be provided at lower cost with higher
reliability. [] The environment will benefit from lower air pollution more than it
would with centralized generation. [] Generation companies [] would suffer major
losses, since the penetration of distributed resources acting as virtual peakers will
significantly reduce peak power prices. [] It is the fear of these losses that creates
resistance from the incumbent players to widespread adoption of distributed
power.”

The Public Utilities Commission is located in the Kekuanao'a Building on the Makai
Ewa corner of Punchbowl and King Street. (Photo by author)

The Hawai`i Vortex

Hawai`i not only has the highest utility rates in the nation, and has held that record
for decades, but also has some of the nation’s better alternative renewable sources
in solar, wind, wave and geothermal resources.


HECO15 has already started to experience this decline and has to be acutely aware
that it could escalate. In the past few years the rate of solar installations within
Hawaiì has doubled each year. The number of renewable energy developers who
have made proposals to the utility for large-scale grid-connected renewable energy
projects has gone up ten-fold. The increasing use of various energy efficiency
systems is also driving down the demand for electricity. HECO, and its subsidiaries
Maui Electric (MECO) and Hawaii Electric Light (HELCO), experienced peak energy
use in 2004. Since then the demand for electricity has been dropping.

In anticipation of this dim future, the utility wrote the Hawaiì Clean Energy
Initiative (HCEI) in 2008. The document calls for the Legislature and the Hawaii
Public Utilities Commission (PUC) to adopt policies to shield HECO from this
impending doomsday scenario. One such policy or concept is called “Decoupling.”
This mechanism states that the utility is entitled to a certain level of revenue, and
as sales drop they can automatically increase rates to keep their revenue on target.
The PUC has already approved this mechanism.

An additional centerpiece of the HCEI is the development of industrial scale
renewable power plants that would require extensive cabling to send large amounts
of power to the primary load center, Oàhu.

In February 2012 the parent company of HECO, MECO and HELCO, the Hawaiian
Electric Industries Inc. (HEI) included this in its annual 10-K report with the U.S.
Securities and Exchange Commission:

“Increasing competition and technological advances could cause HEI’s businesses to
lose customers or render their operations obsolete. ...HECO and its subsidiaries
face competition from IPPs [Independent Power Producers] and customer

electricity will occur. New technological developments, such as the commercial
development of energy storage, may render the operations of HEI’s electric utility
subsidiaries less competitive or outdated.”16

Climate Change – one more reason to leave the grid

Moving away from fossil fuel use is not simply a matter of economics, but is vital to
slowing the rate of climate change.

As LOL’s Vice President for Social Justice, Kat Brady, testified to the PUC in 2009 in
the matter of HECO’s proposed power plant at Campbell Industrial Park: “The
planet is in crisis. Global warming can no longer be ignored. The science is in and

15
Hawaii Electric Industries (HEI) owns Hawaiian Electric Company (HECO) and American Savings
Bank (ASB). HECO owns MECO and HELCO.
16

17, 2012 for the year ending December 31, 2011, at 28.


the data is conclusive that global warming and climate change is primarily due to
the burning of fossil fuels. We no longer have a choice. We must change or perish.
The earth is in crisis and this proposed project does nothing to address the fact that
global warming is real - the planet is heating up faster than predicted and the
future is uncertain.”17

It is now a settled matter that ocean levels are rising because glaciers and other
snow and ice formations are melting. While melting ice bergs do not change the
depth of the water, the oceans expand unevenly with rising temperatures. The
oceans are also becoming more acidic. Low lying coastal areas are facing coastal
erosion and salt water intrusions into drinking water aquifers. Pacific Atolls and low-
lying islands are particularly vulnerable.

“The government of Tuvalu is in a quandary as salt water intrusion threatens their
aquifers and as they witness the loss of their shorelines and their food-producing
gardens to a rising sea. Tuvaluan officials have made arrangements with Aotearoa
(New Zealand) to relocate their people. Tuvalu and its neighbor Kiribati are
rumored to have bought land in Fiji in order to relocate their populations.

But not all of the people want to leave. Some fear the loss of their culture and
would rather sink with the island than face the cultural genocide of assimilation.
The issue for Tuvalu is how to slow the heating of the planet so that their culture
will thrive in its homeland. Tuvaluans have not caused the problem, but are
suffering the very real impacts. Global warming raises moral issues and health
issues as well as scientific and environmental issues.”18

Health Impacts

Continued use of fossil fuel also contributes to health problems. A National
Academy of Science Study was conducted at the request of U.S. Congress. The
study analyzed costs not incorporated in the price of gasoline and electricity
(“Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use,”19
2010). The report found that 20,000 people die prematurely each year from fossil
fuel air pollution, and that health impacts in the U.S. ($120 billion/year) from the
use of coal and oil were nearly equal. The report also determined that renewable
motor fuel (corn-based ethanol) was slightly worse than gasoline in its
environmental impact.

17
Testimony of Kat Brady, Vice President for Social Justice, Life of the Land, Hawai`i Public Utilities
Commission, Docket No. 2005-0145, O`ahu Power Plant (“Brady LOL T-1”).
18
Brady LOL T-1.
19
http://www.nap.edu/catalog.php?record_id=12794


The report did NOT analyze the health impacts associated with global warming;;
burning oil for trains, ships and planes;; coal mining;; and coal byproducts dumped
into streams and rivers.20

Epidemiologists are studying links between pollen and the 61% increase in the
diagnosis of asthma in the last generation,21 as pollen is an important trigger and
possible cause of asthma. Since higher temperatures and elevated atmospheric
carbon dioxide concentrations can promote the growth and earlier flowering of
pollen-producing plant species, the length and intensity of the pollen season
expands along with its geographical range,22 and may increase/intensify allergic
reactions.

Ecosystems

Sea level rise in Hawai`i is anticipated to be one foot by 2050 and three feet by
2100.23

According to the U.S. Fish and Wildlife Service: “Conserving native species and
ecosystems is a challenging task that is destined to become progressively more
difficult as global climate change accelerates in the coming years. Temperature,
rainfall patterns, sea level and ocean chemistry, to name but a few, will move
beyond the range of our experience [] Climate change presents Pacific Islands with
unique challenges including rising temperatures, sea-level rise, contamination of
freshwater resources with saltwater, coastal erosion, an increase in extreme
weather events, coral reef bleaching, and ocean acidification. [] In Hawai‘i, the
seasonal and geographic distribution of rainfall and temperature has combined with
steep, mountainous terrain to produce a wide array of island-scale climate regimes.
These varying regimes in turn have supported the diversification and migration
upward of Hawai‘i's native plants and animals. Increasing amounts of human-
caused greenhouse gases will likely alter the archipelago’s terrestrial and marine
environments.”24

The role that fossil fuel use by humans plays in contributing to climate change is
abundantly clear.

Proposed Solution

20
http://www.nytimes.com/2009/10/20/science/earth/20fossil.html
21
New England journal of Medicine. http://www.nejm.org/doi/full/10.1056/nejmra054308
22
http://www.epa.gov/iaq/pdfs/johngirman.pdf;;
http://www.lung.org/associations/states/california/assets/pdfs/advocacy/global-warming-impacts-
public.pdf
23
Sea-Level Rise and Coastal Land Use in Hawai‘i: A Policy Tool Kit for State and Local Governments
by the Center for Island Climate Adaptation and Policy (ICAP), University of Hawai‘i Sea Grant College
Program
http://seagrant.soest.hawaii.edu/sites/seagrant.soest.hawaii.edu/files/publications/icap-
sealevelrisetoolkit_web-1_2.pdf
24
http://www.fws.gov/pacific/Climatechange/changepi.html;;


Some communities may focus on rapidly increasing the renewable energy
penetration level on their grids. This can be done in conjunction with Smart Grid
technology.

Other communities may opt for increased renewable energy in combination with the
importation of liquefied natural gas (LNG) a cheaper and cleaner fossil fuel.

Still other communities could decide that, rather than waiting for the inevitable
escalating rate hikes and for climate change to reach crisis levels, they should find
ways of leaving the grid now.

In the transformation process, all of these communities can save money, increase
the amount of revenue that stays and circulates within their local communities,
while creating local jobs, and decreasing the environmental, social and cultural
impacts associated with energy production, transmission and use.

Since each island has different resources and different values it only makes sound
social and economic sense to design each island system differently.


CHAPTER 2. ENERGY TERMINOLOGY

Energy can neither be created nor destroyed, but it can change forms. All energy
options in the world are derived from three sources: the sun, the earth, and the
moon. Sun energy includes solar, wind, biomass, biofuels, ocean thermal, coal,
hydroelectric, oil, ocean waves, and natural gas. Earth sources includes geothermal
and nuclear (uranium). The moon causes tides.

Substation (Photo by author)

Electricity is simply a useful form of energy, from whatever source derived, that can
be transmitted to customers via a transmission and distribution grid.

Renewable energy can be either intermittent (solar, wind, ocean wave energy,
biomass, hydro) or firm (ocean thermal, geothermal, garbage or waste to energy,
biomass, hydro).

Intermittent or variable sources are those that are available only part of the time,
so when electricity is needed the fuel source may or may not be available to
produce it. For example, solar panels will produce a lot of electricity when the sun is
overhead, some electricity at dawn and dusk, and no electricity at night.


Firm electric power, also called “baseload” power, is power that is always available
because the fuel source is always available to be converted to electricity. Firm fuel
sources include coal, oil, gas, nuclear, geothermal, and ocean thermal energy
conversion (OTEC).

Note that both biomass and hydro can be intermittent or firm.

Maintaining reliable grids requires mostly baseload energy. The exact percentage
that can be renewable depends on the characteristics of the grid, the intermittency
of the energy sources, and their interplay.25

It is better to not need energy in the first place (conservation) but if it is used, to
use less of it (energy efficiency). Sometimes “energy efficiency” is used to mean
both conservation and efficiency. Energy efficiency can also mean the production of
electricity for local use, for example, solar electric panels used for household
consumption.

A solar (photovoltaic) panel converts sunlight into electricity. The efficiency rating
of a solar panel refers to the maximum percentage of sunlight converted into
electricity. The capacity factor of the solar panel refers to the average percentage
of sunlight converted into electricity. The capacity factor averages sunlight
conversion at noon, dusk and night.

25
Further analysis requires knowledge of advanced mathematics, physics and electronics.


Load

Two terms which are sometimes confused are watt and watt-hours. Watt (a unit
that measures the rate of energy conversion) refers to the size of the system, that
is, what is the maximum amount of electricity that a system can produce. Watt-
hours refer to the actual amount of electricity produced. If a one-watt system is
always turned on, it will produce 24 watt-hours of electricity per day.

A kilowatt equals 1,000 watts, and a megawatt equals one million watts.

Rooftop solar energy systems are usually in the kilowatt (kW) and kilowatt-hour
(kWh) range, while utility scale renewable energy systems are usually in the
megawatt (MW) and megawatt-hour (MWh) range.

Load is the average amount of electricity that is used over a period of time.

Peak load is the maximum amount of electricity that is used, and minimum load is
the least amount of electricity that is used.

The O`ahu grid currently has a minimum load of approximately 600 MW, a
maximum load of approximately 1,300 MW, and an average load of approximately
900 MW.

When a utility company provides information about load, it almost always refers to
peak load since that is what drives the need for additional generation and
transmission.

Waikiki’s peak load in 1998 was 8%;; that is, Waikiki’s maximum load divided by
O`ahu’s maximum load (which may not be on the same day but is in the same
year) was 8% for 1998.

Generation that is produced and used in the same general area is called Distributed
Generation (DG). Generation that is produced in one area, and is then sent on
transmission lines to another area, is called Central Generation (CG). Central
Generation requires transmission lines to be built between where the electricity is
produced and where it is consumed.


The charts below delineate system peak load by Company26 (MW), excluding
Kaua`i’s utility cooperative. The peaks on different islands occur at different times,
so the total does not refer to the amount actually being generated at one specific
time.

Utility 2008 2007 2006 2005 2004
HECO 1186 1216 1266 1230 1281
HELCO 198 203 201 197 195
MECO 206 216 218 214 218
Total 1590 1635 1685 1641 1694

HECO Peak and Minimum Loads27
Year Peak Demand (Net Minimum Load (Net
MW) MW)
2005 1230 531
2004 1281 538
2003 1242 513
2002 1204 502
2001 1191 520
2000 1164 496
1999 1120 502
1998 1131 487
1997 1176 483
1996 1157 475

26
HEI 2008 statistical supplement and utility forecast, p.19.
http://phx.corporate-
ir.net/External.File?item=UGFyZW50SUQ9MzMzNTM5fENoaWxkSUQ9MzE2MTc0fFR5cGU9MQ==&t=1
27
http://www.heco.com/vcmcontent/GenerationBid/HECO/HECOSystemOverview.pdf


CHAPTER 3. CONSERVATION & ENERGY EFFICIENCY

Before turning to island-specific potentials for distributed renewable energy, a few
facts about energy efficiency, the most cost-effective means to lower costs for all
islands, and a short discussion of firm and intermittent sources of energy, are
necessary.

Energy efficiency simply means doing the same work with less energy.

Hunter Lovins (co-founder of Rocky Mountain Institute, TIME Magazine's 2000
Millennium Hero of the Planet & the European financial community's 2008
Sustainability Pioneer) discussed energy efficiency at the Sustainable Hawaii
Conference (1997), co-sponsored by Maui Tomorrow and Maui's Grand Wailea
Resort.

Full of energy and positive outlook, Lovins is driven by a need to reduce wasteful
energy consumption -- "The key notion that makes getting off oil possible is
counter-intuitive: the best and cheapest ‘source’ of energy is not in fact supply, but
efficiency. Any effort in these directions will save money, increase America’s
national security, and help protect the environment. ... In nearly every case,
energy efficiency costs far less than the fuel or electricity it saves."28

There is a financial cost to purchasing, installing and operating energy efficiency
systems.
Averaged over the lifetime of the equipment, the cost to reduce consumption by
1 kWh is 3-4 cents. 29

Compact Fluorescent Light Bulb Light Emitting Diode (LED) Traffic
(CFL)30 Light31

28
“Making it Last” by Hunter Lovins, August 10, 2004 http://www.yesmagazine.org/issues/can-we-
live-without-oil/1018.
29
Conversation with Jim Lazar. Mr. Lazar is a Senior Advisory to the Regulatory Assistance Project
(RAP), a global, non-profit team of experts focused on the long-term economic and environmental
sustainability of the power and natural gas sectors, providing assistance to government officials on a
broad range of energy and environmental issues. For 3 decades he has maintained a consulting
practice in electric and natural gas utility ratemaking and resource planning. His clients have included
municipal and cooperative electric utilities, natural gas utilities, regulatory commissions, state
consumer advocates and public interest organizations in Hawai`i, the United States, Canada, Ireland,
New Zealand, and Australia.
30
http://akagreen.files.wordpress.com/2009/02/cfl.jpg
31
http://www.fad.co.za/Diary/diary010/traffic-lights-led.jpg


CFL’s should replace incandescent light bulbs. Toy ovens, powered by an
incandescent light bulb cook the food because practically all of the energy emerging
from the bulb is heat, not light. Buildings using incandescent lighting have to
remove this heat from rooms by using air conditioning. But by switching to CFLs, no
heat is created and the room does not need as much cooling.

A light-emitting diode (LED) is based on diode electronics. Currently they are more
expensive and require specific heat management and current specifications. The
advantages, however, include longer life, lower energy consumption and smaller
size.

Meters: Small devices can be installed between a plug and a wall outlet that
measure the flow to each device when the device is on. Phantom power loads refers
to the electricity used by a device when it is “off.” Often devices use almost as
much electricity in the off position, which is a "consumer" convenience allowing
quick starts.

The Energy Detective33 The Energy Detective
(TED) costs between
$200-300 (depending on
the features desired) plus
the cost for an electrician
to install it. TED sends
real-time data every 10
The Plug-in Energy Meter minutes to either a
& Electricity Cost customer's iGoogle gadget
Calculator32 or Google account.

32
http://www.smarthome.com/11391/Plug-in-Energy-Meter-and-Electricity-Cost-Calculator/p.aspx
33
http://www.devicedaily.com/wp-content/uploads/2009/02/energy-detective.jpg


Solar Water Heaters

Solar Screen34 Solar Water Heater35 Solar Water Heater
components36

Solar water heating, or a solar hot water system, uses water heated by the sun’s
energy. Solar heating systems are generally composed of solar thermal collectors,
along with a fluid system to move the heat from the collector to its point of usage.
The system may use electricity for pumping the fluid, and have a reservoir or tank
for heat storage and subsequent use. Since twenty to thirty percent of a home’s
typical energy use is to heat water, a solar hot water system saves a proportionate
amount both in displacing fossil fuel use and lowering monthly bills.

Daylighting

Skylights are horizontal domes or Allowing the sun to provide ambient light
rooftop windows37 for rooms can be done with skylights.38

34
http://solarscreenusa.com/yahoo_site_admin/assets/images/sun_solar.26322434_std.jpg
35
http://solar.calfinder.com/blog/wp-content/uploads/2009/10/solar-water-heater-rooftop.jpg
36

http://www.energyeducation.tx.gov/renewables/section_3/topics/solar_water_heaters/img/fig20a_sol
ar_water.gif
37
http://buildingcommissioning.files.wordpress.com/2008/01/daylighting1.jpg
38
http://farm1.static.flickr.com/83/216500844_7154d601a2_o.jpg


Rather than blocking off a building from its environment and then creating an off-
setting artificial interior lighting environment, daylighting allows an interaction
between the two.

Although most beneficial in large hotels and buildings found on more populous
islands such as O`ahu and Maui, daylighting is a simple mechanism that can be
appropriate for large as well as small structures.

Solar Shelf Solar Tube Solar Light Bulb

Light shelves39 placed below Solar Tubes capture dispersed Solar tubes
windows can be used to reflect sunlight and through reflective generate
sunlight upward to illuminate the material within the tube, diffuse light.41
ceiling, creating general transfers that light into
illumination. rooms.40

Sea Water Air Conditioning (SWAC)

SWAC Diagram42 SWAC System43

39
www.robotecture.com/endofmechanics/CONTENT/Student%20Apps/EZ/Zambrano%20EOM%20final/
template-img/light_shelves.jpg
40
http://www.inhabitat.com/2006/12/28/solar-tube/
41
www.portlandonline.com/shared/cfm/image.cfm?id=114639
42
http://www.zulenet.com
43
http://www.renewableenergyworld.com/assets/images/story/2008/7/9/1332-investors-fund-us-10-
75-m-for-honolulu-seawater-air-conditioning.jpg


Sea Water Air Conditioning (SWAC) is a great energy-efficient system. It involves
two pipes, a U-shaped ocean-water pipe and a circular fresh-water pipe, which
meet at a heat exchanger. The water in each pipe does not cross into the other
pipe, rather the heat moves from the fresh-water pipe to the ocean-water pipe. The
ocean water pipe pulls cold water from the lower depths and discharges warmer
water into a warmer layer of the ocean.

The fresh-water pipe brings cool water into buildings, where heat exchangers pull
heat out of internal pipes within individual buildings. This alleviates the need for
expensive chillers to be located within each building, where forty percent of the
commercial load is for cooling.

“Air conditioning systems are energy intensive and represent 35% to 45% of
energy use in typical office and hotel buildings in Hawaii. ...SWAC is suitable for
coastal developments with large air conditioning demand and reasonable access to
deep, cold seawater. Notable areas are southern Kauai, several areas of Oahu, and
the southern 60% or more of the Big Island. A number of studies have been
conducted to evaluate the potential of SWAC in Hawaii, and there is an operating
system at the Natural Energy Laboratory of Hawaii Authority (NELHA) at Keahole
Point, Hawaii. These studies all show that there is significant potential for SWAC in
Hawaii. More recent studies show that combining SWAC with thermal energy
storage and auxiliary chillers increases the cost effectiveness and applicability of
such systems. ...SWAC systems eliminate the need for cooling towers and, as a
result, reduce potable water use, toxic chemical use, and the production of
sewage.”44

Cornell University studied this approach in a multi-year environmental review,
which was examined in depth by environmentalists and university researchers. The
University found that the total yearly heat added, via pipe, to a lake located six
miles from campus was equivalent to one hour of summer sunshine upon the lake’s
surface. That is, over the course of the year, the sun accounted for 99.9% of the
heat entering the lake, less than one tenth of one percent would have been added
as a result of the SWAC system. The SWAC system at Cornell, as well as one in
Toronto, were installed by a Hawai`i company, Makai Ocean Engineering.

Deep-water air-conditioning is appropriate for major cities located near the ocean
or near deep lakes, as it has the advantages of low cost, and great savings on both
energy and air conditioning chemicals. Utilizing the systems described above, deep-
water air-conditioning is suitable for large, midsize and small communities, as well
as universities, hospitals or hotel resorts.

Does pursuing Energy Efficiency create a Conflict of Interest for the utility?

44
Testimony of Dr. David Rezachek in Hawai`i PUC Docket 2005-145 re: Sea Water Air Conditioning.
http://www.lifeofthelandhawaii.org/Proposed-2009-plant/Rezachek.pdf


There is an inherent conflict of competing interests for a utility, designed to
maximize its profits by selling more electricity, if it is at the same time being paid
with ratepayer money to help customers reduce their energy bills through the
installation of energy efficiency devices.

Because of this conflict, the Hawai`i PUC removed energy efficiency programs from
HECO, MECO and HELCO control and assigned oversight of the programs to an
independent company.

To further confuse a confused playing field, the utility nonetheless collects money
from ratepayers through each monthly bill, and then transfers the money to
another entity that monitors the energy efficiency program. Currently Science
Applications International Corporation administers “Hawaii Energy”, the ratepayer-
funded conservation and efficiency program, under a contract with the PUC.45

The mission of Hawaii Energy is “to educate, encourage and incentivize the
ratepayers of Hawaii to invest in conservation behaviors and efficiency measures to
reduce Hawaii's dependence on imported fuels.”46

Residential incentives offered by Hawaii Energy include “solar water heating, high
efficiency water heaters, heat pumps, compact fluorescent lights (CFLs), central air
conditioning (AC) maintenance, ENERGY STAR® appliances, bounty program, whole
house and solar attic fans.”47

Hawaii Energy also provides commercial incentives for lighting, pumps, motors, air
conditioners, window films, energy studies and sub-metering (allowing a landlord,
condominium or homeowner’s association with one meter to bill tenants and lessees
for individually measured utility usage).48

Sustainable Saunders

Second to only the military, the University of Hawai`i, Manoa campus, is the largest
consumer of electricity in the state.49 In the late 1990s the entire university system
was connected to the HECO grid with only one meter, making it impossible for the
University to know which buildings on campus were wasting energy.

In 2006 a group of students, led by dynamic coordinator Shanah Trevenna, formed
a group called Help Us Bridge (HUB).50 In 2007 HUB surveyed the majority of the
occupants of Saunders Hall regarding their energy use and found that “90% of the
building’s energy was used for lighting and air conditioning, while the top two

45
http://www.hawaiienergy.com/4/about-us;; Email: hawaiienergy@saic.com;; Web:
www.hawaiienergy.com;; Facebook: www.facebook.com/hawaiienergy;; Twitter: @MyHawaiiEnergy
46
http://www.hawaiienergy.com/4/about-us
47
http://www.hawaiienergy.com/4/about-us
48
Id.
49
http://manoa.hawaii.edu/news/article.php?aId=4004
50
http://sustainable.hawaii.edu/factsheet.html


complaints by residents were that the lights were too bright and the temperature
too cold.”51

In an effort to make energy savings exciting, Trevenna wanted to have each floor
compete against one another, with part of the savings going to the winning floor,
part to the building as a whole, and part to the university. At first the University
Administration balked at creating financial arrangements, but then the energy price
spike of 2008 hit and the University’s HECO bill rose from $15M to $21M in a year.

After Trevenna was able to get a local vendor to donate a micro wind system and a
solar panel for installation on the roof of Saunders Hall, the University quickly
adopted an energy strategy,52 statistics were gathered on buildings that wasted
energy,53 and over 500 megawatt-hours of savings was documented for particular
programs: AC Shutdown Project (411 MWh saved), Incandescent Bulb Elimination
(42 MWh saved), and Delamping Project (107 MWh saved).

In 2010 the Saunders Hall floor competition started: “For the first time, a

reducing energy consumption.”54 Saunders Hall’s annual energy bill has been
reduced by $150,000.55 Part of the savings was given to the department as a
reward.

Maximum Achievable Potential Efficiency Savings56

Building Type Potential Savings
Residential New Construction 36%
Residential Retrofit 34%
Commercial New Construction 30%
Commercial Retrofit 19%

51
http://sustainable.hawaii.edu/Reports/Eco-
Tipping%20Point%20Summary%20of%20sustainable%20saunders.pdf
52

http://rs.acupcc.org/site_media/uploads/cap/381-cap.pdf
53
http://sustainablesaunders.hawaii.edu/campus_stats.html
54
http://manoa.hawaii.edu/news/article.php?aId=4004
55
http://honoluluweekly.com/feature/2011/09/spending-money-to-stay-uncomfortable/;; See also:
http://sustainablesaunders.hawaii.edu/#accomplishments
56
NREL/SR- 7A40-52442, p. 8: “Maximum Achievable Potential Efficiency Case” as described in
Assessment of Energy Efficiency and Demand Response Potential, a 2004 report prepared by Global
Energy Partners for HECO.


Hawai`i Energy Efficiency Penetration

Hawaii Electricity Consumption: Total and Per Capita57

HECO collected ratepayer money to finance energy efficiency programs from 1996-
2009. Thereafter HECO continued to collect, but the funds are spent by Hawaii
Energy, the independent energy efficiency utility noted earlier that is under contract
with the Hawai`i PUC.

According to Hawaii Energy’s Annual Plan (2011),58 the penetration, or level of
achieved energy efficiency, has underperformed for two key reasons. First,
consumer confidence has dropped significantly since the 2008 economic recession,
which is reflected in a lack of willingness by consumers to participate in energy
efficiency programs, such a purchasing new appliances. Second, in the early years

57
DBEDT: Status and Progress of Clean Energy Initiatives and Analysis of the Environmental
Response, Energy and Food Security Tax Report (January 3, 2012), Pursuant to Act 73, Session Laws
of Hawaii 2010. http://hawaii.gov/dbedt/main/about/annual/2012-reports/2012-clean-energy-
initiative.pdf
58
http://www.hawaiienergy.com/media/assets/HawaiiEnergy2011AnnualPlan2011-07-05v4FINAL.pdf


(1996-2005) the consumers who were considered the easiest to reach were
enrolled in the program. Now the target is hard-to-reach (HTR) customers,
including renters and small businesses. Thus, the program is seeing diminished
energy savings returns for each incentive dollar invested.

Efforts to reduce residential demand focus on two key areas: Solar Water Heaters
(SWH) on residential roofs and Compact Florescent Lights (CFL). CFL’s account for
approximately 50% of total savings.

Hawaii Energy’s 2011 Plan also notes that the energy efficiency implementation
program is experiencing uneven penetration among the islands.

Energy efficiency penetration (2009)59

Island Percent
Oahu 9.3
Maui 9.3
Kauai 7.1
Big Island 6.2
Average 8.8

A June 2012 report by the American Council for an Energy-Efficient Economy
(ACEEE) looks at large-scale energy efficiencies.

The report “A Defining Framework for Intelligent Efficiency”60 notes that about 22%
of the U.S. energy consumption could be avoided by using "intelligent efficiency."
This requires continuing the installation of individual energy efficiency devices, but
also going the next step, by looking at the efficiency of large complex systems such
as “entire cities, transportation systems, and other networks.” The energy savings
and productivity gains would add hundreds of billions of dollars to the economy.

59
DBEDT Renewable Energy in Hawaii (June 2011).
http://hawaii.gov/dbedt/info/economic/data_reports/reports-studies/2011-renewable-energy.pdf
60
Written y Neal Elliott, Maggie Molina and Dan Trombley, American Council for an Energy-Efficient
Economy (ACEEE). Report Number E125


CHAPTER 4. CONTINUOUS ENERGY RESOURCES

Continuous (baseload) or “firm” energy resources are available all of the time - they
can operate a system “24/7.” This is critical in Hawai`i since the peak load
occurs after sunset.61 Baseload energy can also be used to firm up intermittent
loads.

Fossil Fuels

There are three types of fossil fuels: coal, petroleum oil and natural gas.

Coal Delivery & Storage System at the AES 180 MW Coal Plant, Kalaeloa, O`ahu
(Photo by author)

Crude natural gas, often just called “gas,” exists in large underground deposits.
Natural gas can be refined into various products including natural gas/methane
(CH4), carbon dioxide, water vapor, and various other hydrocarbons.

61
Conversation with Jim Lazar, a Senior Advisory to the Regulatory Assistance Project (RAP)


The cleanest of these “dirty” fuels is natural gas (CH4). It is the cleanest in terms
of both its extraction and its use. Hawai`i relies on the “dirtier” types of fossil
fuels, namely coal and oil.

Natural gas and petroleum fuels provides an effective way to maintain steady
electricity load (supply). That is, the output of gas turbines can change rapidly to
offset fluctuations in the electricity produced by intermittent renewable energy
(solar and wind) generators.

In 2004 the Hawaii Energy Policy Forum released a report on liquefied natural gas
(LNG) that identified some of the complexities and issues surrounding its use in
Hawai`i:

“LNG is natural gas that has been cooled to -256 °F, at which point it liquefies and
occupies 1/600th the volume that it does in its gaseous state. LNG is not
pressurized or flammable in its liquefied state. ...

In recent years, [] the LNG market has undergone a dramatic transformation.
Production costs have declined and the large number of new supply projects has
transformed the LNG market into a buyer’s market, where buyers have much more
flexibility in contract terms and prices are significantly lower. Of course, a change of
this magnitude is likely to be disruptive to the existing energy infrastructure, but
LNG clearly deserves a close look as Hawaii considers its future energy strategy. ...

Looking forward to 2020, using LNG instead of maintaining current fuel plans
would reduce the global warming potential of Oahu power generation by
approximately 25 percent[]. It should be noted, however, that LNG production and
transport consumes more energy than oil production and transport, so the true
reduction is closer to 15 percent when the entire production chain is taken into
account.

If Hawaii was developing its energy infrastructure from scratch, LNG would
likely be the ideal fuel, especially given the available options. It would allow the
State to limit its dependence on oil, it is clean burning, and it could serve as a
useful ‘bridge’ fuel ...

Liquefied natural gas (LNG) consists almost entirely of methane, and it is the
cleanest burning of all fossil fuels. The main byproducts of combustion of natural
gas are carbon dioxide and water vapor. At the other end of the spectrum, coal and
fuel oil both emit relatively high quantities of pollutants, including nitrogen oxides
(NOx) and sulfur dioxides (SO2). Combustion of these fuels may also release
particulate matter into the environment.” 62

62
“On Evaluating Liquefied Natural Gas (LNG) Options for the State of Hawaii” (Final Report, January
2004) Prepared by Dr. Fereidun Fesharaki (Principal Investigator);; Dr. Jeff Brown (Project
Coordinator);; Mr. Shahriar Fesharaki;; Ms. Tomoko Hosoe;; Mr. Jon Shimabukuro, for the Hawaii
Energy Policy Project University of Hawai‘i at Manoa.
http://www.hawaiienergypolicy.hawaii.edu/papers/Hawaii_LNG.pdf


Emission Levels from Combustion of Various Fossil Fuels
(pounds per billion BTU of energy input)

Pollutant Natural Gas Oil Coal
Carbon Dioxide 117,000 164,000 208,000
Carbon Monoxide 40 33 208
Nitrogen Oxides 92 448 457
Sulfur Dioxide 1 1,122 2,591
Particulates 7 84 2,744
Mercury 0 0.007 0.016

In 2007, the Energy Policy Forum released a second report:63

“There is a large amount of “stranded” gas in the Asia-Pacific region which could
supply Hawaii, including domestic gas from Alaska. If Hawaii chooses to sign a
long-term contract, it is essentially claiming proven gas reserves for its own use for
20-30 years, which is the typical time frame for a long-term contract.”

Compressed Natural Gas (CNG) offers another option for importing and using
Natural Gas within Hawai`i. However, for a given unit of energy, CNG takes up
more storage space than gasoline. Therefore it is not often used in long-range
transportation.

Fuel Cells powered by Natural Gas

Fuel cells powered by natural gas can be used to stabilize fluctuations in power
generation by intermittent energy sources, and to provide additional baseload
power.

Fuel cells are now available to the public. Cutting edge technology is being rolled
out by companies such as Clear Edge Power, United Technologies, and Bloom
Energy, as new natural gas reserves are being discovered.64

“Bloom Energy, a Silicon Valley based start-up has created quite a stir in the energy
industry. It is about to launch its Bloom Box - a fuel cell-based energy technology
which will generate relatively affordable and clean energy. Top companies like
Google, eBay, Lockheed Martin, WalMart, and Bank of America are already testing
the device.”65

63
Evaluating Natural Gas Import Options for the State of Hawaii (April 2007) Prepared for The Hawaii
Energy Policy Forum, The Hawaii Natural Energy Institute & The Office of Hawaiian Affairs by FACTS
Inc. Honolulu, Hawaii https://www.eere-pmc.energy.gov/states/Hawaii_Docs/FGE-
Evaluating_Natural_Gas_Import_Options_for_Hawaii-Revised.pdf
64
http://www.nogridusa.org/fuel-cells
65
http://tekchat.blogspot.com/2010/02/bloom-box-disruptive-energy-device-by.html


Bloom Energy Servers are about as tall as an adult and can use virtually any
hydrocarbon fuel. Bloom Energy will revolutionize the power generation industry by
cutting out the middle-man (the grid).66

The Gas Company has a gas grid in urban Honolulu, smaller grids in other urban
areas around the state, and a fleet of gas trucks to bring gas to individual
customers. A similar infrastructure might be needed for Natural Gas.

Natural Gas Impacts

The use of Natural Gas, like all other energy options - both renewable and non-
renewable - has positive and negative economic, environmental, social, cultural and
climate impacts.

For example, “fracking” or hydraulic fracturing, is increasingly used to extract
Natural Gas. This involves sending pressurized water and chemicals into a bore hole
to break up rocks, a technique that can contaminate a water table and cause
earthquakes. Some natural gas extraction sites recover gas without fracking.

Spending money on creating a Natural Gas infrastructure means not spending that
money on something else (avoided cost). The danger is that once Natural Gas is
designated as a “bridging technology” and society learns to rely on its use as part
of the energy solution, then it may become more difficult to consider other
alternatives.

The Jones Act (Section 27 of the Merchant Marine Act of 1920 that regulates
maritime commerce) might prevent Hawai`i from being able to import natural gas
at a reasonable price. The Jones Act requires that all goods transported by water
between American ports be shipped in American built, owned, operated and
manned vessels.

On March 13, 2012 Nobel Laureate Joseph Stiglitz67 spoke at UH Manoa on man-
made barriers that restrict lower energy prices in Hawai`i: “There are three that
obviously seem to glare at an outsider as he looks around. One of them is the lack
of competition on inter-island transport [] The second is high electricity prices. []
The third distortion that affects Hawaii a great deal is the Jones Act. [] This is the
law that requires American ships to carry cargo between American ports. [] You

66

http://www.dailytech.com/Bloom+Energy+Unveils+Energy+Servers+Looks+to+Revolutionize+Power
+Industry/article17770.htm
67
Joseph Eugene Stiglitz is an American economist and a professor at Columbia University. He is a
recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the John Bates Clark Medal
(1979). He served in the Clinton Administration as the chair of the President's Council of Economic
Advisors (1995 – 1997). At the World Bank, he served as Senior Vice President and Chief Economist
(1997 – 2000), in the time when unprecedented protest against international economic organizations
started, most prominently with the Seattle WTO meeting of 1999. He was fired by the World Bank for
expressing dissent with its policies. He was a lead author for the Intergovernmental Panel on Climate
Change. http://en.wikipedia.org/wiki/Joseph_Stiglitz


can’t use trans-shipment. You can’t go from Asia, drop off something in Hawai`i,
pick up something in Hawaii and transmit it to the United States. And so it really
increases the cost of shipping. So while your advantage is your location, it’s also
your disadvantage. It imposes a disproportionate burden on Hawai`i. [] it is an
outrageous restriction on trade in a country that says it believes in free markets.”68

Michael Hansen, President Hawaii Shippers Council, noted that, “The kind of
oceangoing ship required to carry natural gas is a highly-specialized tanker known
as an LNG carrier, which carries the liquefied natural gas (LNG) at very cold
temperatures and at very high pressures. Large scale use of natural gas in Hawaii,
such as to fire power plants, would require the use of large oceangoing LNG carriers
to bring in the fuel. There are no Jones Act ships available to transport the LNG
from the contiguous United States or Alaska to Hawaii. No deep draft LNG carrier
has been built in a U.S. shipyard for at least 30 years. [] In the mid-2000’s, a
major California-based natural gas distributer, Sempra LNG, investigated building
Jones Act LNG carriers in the U.S. to carry natural gas from Alaska to the U.S. West
Coast. They concluded that the major shipbuilding yards in the U.S. could not build
LNG carriers soon enough to meet their long term resource development schedule,
and, if the ships were ever built in a U.S. yard, their capital cost would be so great
as to make the project unworkable. [] Alternatively, there are extensive new
natural gas fields being developed in offshore Western Australia and in Indonesia.
[] There is a significant costing issue associated with this supply.”69

Geothermal

Geothermal70 (earth heat) has been known and used by people around the world for
at least 10,000 years in many places, including areas currently known as Russia,
Iceland, Hungary, New Zealand, the United States, and Italy. In many places
around the globe reservoirs of steam and hot water are trapped near the surface in
areas of past volcanic activity and are brought to the surface by geysers, steam
vents and hot springs. National Parks such as Yellowstone have evolved around
geysers that draw millions of visitors annually. Hot Springs, Arkansas is named for
spring-fed geothermal baths.

The first use of geothermal power for electricity occurred in Italy in the very early
years of the 20th century. Today Iceland receives most of its power from
geothermal heat and electricity plants.

68
http://www.youtube.com/watch?v=BDUJ2yC4R_c (Time: 53:00-1:04:04).
69
“No Natural Gas for Hawaii with the Jones Act,” Hawaii Free Press, April 16, 2012.
http://www.hawaiifreepress.com/ArticlesMain/tabid/56/articleType/ArticleView/articleId/6546/No-
Natural-Gas-for-Hawaii-with-Jones-Act-Ships.aspx
70
For additional information, See: Melody Kapilialoha MacKenzie,
www2.hawaii.edu/~nhlawctr/article4-1.htm;; http://thefraserdomain.typepad.com/energy/geothermal;;
http://www.punageothermalventure.com/PGV;; http://www.msnbc.msn.com/id/24471365/


The siting of geothermal facilities can have major environmental impacts, as drilling
wells can disturb underground geological formations. Open-cycle geothermal
facilities emit waste gases into the air, while closed-cycle geothermal facilities re-
inject the waste back into the earth via injection wells, making the extent of any
damage difficult to identify and/or analyze.

The operation of closed-cycle geothermal facilities usually has comparatively low
environmental and greenhouse gas impacts.

Geothermal heat pump (GHP)
technology exploits the nearly
constant temperature of soil and
groundwater near the Earth’s
surface to provide highly efficient
space heating, space cooling, and
water heating services.

Geothermal Heat Pumps71

The Massachusetts Institute of Technology conducted an extensive study, released
in 2006, that explored the future impacts of Enhanced Geothermal Systems (EGS)
on the United States in the 21st Century.72 The study concluded that by almost any
measure, “the accessible U.S. EGS resource base is enormous – greater than 13
million quads or 130,000 times the current annual consumption of primary energy
in the United States.”73 The study focused only on what exists within the top 10
kilometers, while recognizing that drill bits today can dig down 30 kilometers.

Geothermal Impacts

Historically, the major impact from using open cycle geothermal is the emission of
waste stream into the air. A potential, and major, impact today is the effort by
geothermal proponents to secure exemptions from the environmental review
process and public notification requirements;; this is currently stirring up the “pot”
of community resentment.
71
http://home-heating-system.waterheatingsystem.co.uk/images/home-heating-system-accessories-
1.jpg
72
http://geothermal.inel.gov/publications/future_of_geothermal_energy.pdf
73
Id., pages 1-15.


Ocean Thermal Energy Conversion

OTEC can be thought of as a reverse refrigerator. While refrigerators use electricity
to create temperature differentials, OTEC systems use temperature differentials to
create electricity. Both can use the same working fluid located within a closed semi-
circular piping system.

Ocean Thermal Resources74

Ocean Thermal Energy Conversion (OTEC) systems create usable energy through
the differential in temperature between two ocean layers. Large temperature
differentials between layers of the ocean occur in the tropics in areas without
continental shelves. There are only a few hundred sites around the world where
there are sharp differences in temperature layers close to the coastline and near
electric transmission grids. Most of these are islands, including Hawai`i.

Professor Gerard Nihous, Department of Ocean and Resources Engineering, Hawaii
National Marine Renewable Energy Center, has estimated that 50,000 MW of OTEC
can be installed worldwide without disturbing the ocean’s dynamic energy system. 75

74
http://zebu.uoregon.edu/1996/ph162/images/oceant.gif
75
A Preliminary Assessment of Ocean Thermal Energy Conversion Resources.
http://hinmrec.hnei.hawaii.edu/ongoing-projects/otec-thermal-resource/
See also http://hinmrec.hnei.hawaii.edu/wp-content/uploads/2010/01/Updated-Extractable-Ocean-
Thermal-Resources-2007.pdf


Closed Cycle OTEC76

76
http://www.nrel.gov/otec/images/illust_closed_cycle.gif


Concentrated Solar Power

Although usually considered an intermittent source of power, Concentrated Solar
Power (CSP) systems can store heat and produce electricity hours after the sun has
set, making it a source of “firm” power. CSP systems are built using aluminum and
glass, but not silicon, which is sometimes scarce and costly. Unlike the more
traditional flat photovoltaic panels, CSP systems use a parabolic mirror to capture
the rays of the sun and focus it on a pipe, heating its liquid contents into a gas to
fire a gas turbine. One negative impact of using thermal storage is the amount of
water needed for cooling purposes.

The first commercial CSP plants were built in California in the mid to late 1980s.
CSP dropped out of the picture as fossil fuel prices fell, but in the 21 st century
renewed interest has developed in Europe and the U.S.

“CSP is being widely commercialized and the CSP market has seen about 740 MW
of generating capacity added between 2007 and the end of 2010. [] A further 1.5
GW of parabolic-trough and power-tower plants were under construction in the US,
and contracts signed for at least another 6.2 GW. [] The global market has been
dominated by parabolic-trough plants, which account for 90 percent of CSP
plants.”77

Torresol Energy’s Gemasolar, located in Fuentes de Andalucia, Seville, Spain, is the
world’s first solar power plant that runs an uninterrupted 24 hours. It has a
maximum output of 19.9 MW, and has 15 hours of thermal energy storage.

Continued research, development, and commercialization of CSP systems may lead
to a point at which CSP units can prove to be a cost-effective replacement for
Natural Gas.78

Luz CSP Facility, California79 Gemasolar CSP Facility, Spain80

77
http://en.wikipedia.org/wiki/Concentrated_solar_power
78
International Energy Agency (IEA) Technology Roadmap Concentrating Solar Power (2010)
http://www.iea.org/papers/2010/csp_roadmap.pdf


Micro-CSP

SOPOGY (SOlar POwer enerGY), a Honolulu-based company founded in 2002,
focuses on building small-scale concentrated solar power systems. Sopogy offers
rooftop CSP, with a trough that flips over to protect itself from adverse weather
conditions. The SopoHelios measures twelve by seven feet and weighs 168
pounds.81 The system can be ground or roof-mounted.

The amount of electricity and thermal energy storage that can be produced on each
roof is highly dependent upon the available flat roof space and the strength of the
roof.

SopoHelios82

79
This line-concentrator power plant, with troughs built by Luz, is one of nine plants that have a
combined output of 354 megawatts - the largest being 80 megawatts - operated by Kramer Junction
Power. It is located in the Mojave Desert in Kramer Junction, California, and was built in the 1980s.
During operation, oil in the receiver tubes collects the concentrated solar energy as heat and is
pumped to a power block located at the power plant for generating electricity.
80
http://www.torresolenergy.com/EPORTAL_DOCS/GENERAL/SENERV2/DOC-
cw4e8863a4e96cd/gemasolar-2011-12.JPG
81
http://sopogy.com/pdf/contentmgmt/p-sh-111012.pdf
82
http://sopogy.com/images/contentmgmt/SopoHelios480px.jpg


CSP technology families83

Line Focus Collectors track the Point Focus Collectors track
sun along a single axis. the sun along two axes and
focus the solar energy at a
single point receiver.

Stationary Linear Fresnel Reflectors84 Towers85
devices
are simpler to
install and
maintain

Mobile Parabolic Troughs86 Parabolic Dishes87
receivers and
focusing
devices move
to follow the
sun.

According to "Sustainable and Sensible Energy" by FRMethods (2011),
“Hawaii’s abundant sunshine and the storage capabilities of Concentrated Solar
Power (CSP) allow for a power source that behaves very close to a baseload (firm,
not intermittent) power. [] The flexibility in design of a CSP system allows for a
fraction of the land use when compared with wind, and its application doesn’t
irreparably damage the integrity of the land.

Clean: Concentrated Solar Power is 100% renewable and emission free. Proven:
Commercially used for over 25 years. Reliable: Abundant sunshine and storage

83
International Energy Agency (IEA) Technology Roadmap Concentrating Solar Power (2010)
http://www.iea.org/papers/2010/csp_roadmap.pdf
84
http://blogs.business2.com/greenwombat/images/2007/09/10/ausra_mirrors_tilted.jpg
85
http://www1.eere.energy.gov/solar/sunshot/images/photo_csp_tower_development-
solartwo_barstow_2000_low.jpg
86
http://www.renewablepowernews.com/wp-content/uploads/skytrough1.jpg
87
http://www.thegreentechnologyblog.com/wp-content/uploads/2D-parabolic-dish-solar-thermal-
plant1.jpg


allows technology to behave like baseload power. Footprint: Land use is 1/8th of
what is required for wind.”

Hydropower

The most common forms of hydropower are Pumped Storage Hydro (PSH) and run-
of-the-stream / in-line hydro (in which part of the stream is diverted into a pipe
with a turbine at the downward end just before the water re-enters the stream). In-
line hydro can be used anywhere there is water flowing through a pipe, including
storm water pipes, sewage pipes, and drinking water pipes.

In the early decades of the 20th century hydropower provided almost half of the
electricity produced in the U.S. Since then hydropower production has increased,
while at the same time there has been an explosion in the use of oil, coal, natural
gas and nuclear power. Today hydropower accounts for 10% of the nation’s energy
production.

Commercial hydroelectric plants are based on two major technologies: reaction
turbines (submerged wheels) and impulse turbines (surface buckets or blades).88

The major advantage of hydroelectric power is its ability to quickly respond to
changes in load and to electric grid disturbances.

Puueo Hydroelectric Plant, Hilo89

The amount of electricity that can be generated by a hydroelectric plant is related
to the height of the impounded water and the flow (volume) of water. (Photo by
author)

88
http://www.usbr.gov/power/edu/pamphlet.pdf
89
Photo by author.


Water System Power Plants

Strange as it might sound, water in existing pipe systems can be converted into
baseload renewable electricity. As noted above, existing drinking water, waste
water and irrigation water systems can generate electricity without significantly
affecting their operational characteristics,90 although there may be some minor
impacts for storm water and sewage water systems, and water accumulation and
contaminants must be analyzed.91

In-stream “Pressure Reduction” Turbine Power Plants convert excess pressure into
electricity. They are common in Europe,92 and some exist within the U.S.93

In-stream “Water Flow” Turbine Power Plants can also convert water flows into
electricity. Discarded water from toilets, sinks and showers, can hit turbine blades
as it falls down the pipes, powering a generator.94 Water flows as low as two gallons
per minute or drops as low as two feet can produce net electricity.

All hydropower facilities in the U.S. are under the jurisdiction of the Federal Energy
Regulatory Commission (FERC). However, small (< 15 MW) hydropower systems
utilizing existing water pipes are exempt from federal oversight.

The Honolulu Board of Water Supply (BWS) is the municipal water utility on O`ahu.
The BWS system consists of ninety-four active potable water sources, 170
reservoirs, and over 2,000 miles of pipeline. The BWS system delivers 150 million
gallons of potable water a day to customers. It also operates a smaller, 7.5 million
gallons per day, recycled water system for irrigation and industrial purposes in
Ewa.95

The Hawai‘i Island Department of Water Supply (DWS) operates twenty-four water
systems from sixty-seven sources. Except in South Hilo and Kona, the individual
water systems are not interconnected.96

90
Drinking water hydropower systems require the use of stainless steel equipment and mineral oil as
the lubricant.
91
Micropower Pros and Cons: http://www.alternative-energy-news.info/micro-hydro-power-pros-and-
cons/;; Energy recovery in existing infrastructures with small hydropower plants: Multipurpose
schemes – Overview and examples. European Small Hydropower Association (ESHA).
http://www.esha.be/fileadmin/esha_files/documents/SHAPES/Multipurpose%20schemes%20brochure
%20SHAPES.pdf;; Energy Systems and Design Ltd.: http://www.microhydropower.com/wp-
content/uploads/2011/08/LH1000-Manual2010.pdf
92
http://www.eawag.ch/medien/publ/fb/doc/Eawag_factsheeet_water_energy.pdf;;
http://www.wien.gv.at/english/environment/watersupply/energy.html
93
Utah: http://www.deseretnews.com/article/700105791/Logan-prepares-to-tap-water-line-hydro-
power.html;; Portland: http://www.earthtechling.com/2011/10/in-pipe-hydropower-deal-for-portland/
94
http://cdn.intechopen.com/pdfs/31401/InTech-
Integration_of_small_hydro_turbines_into_existing_water_infrastructures.pdf;; HyDro Power: Turning
Toilet Wastewater Into Electricity by Maria Popova (2010). http://bigthink.com/ideas/21043
95
BWS Annual Report (2010 – 2011) pp. 1, 4. http://www.boardofwatersupply.com/files/FINAL%20-
%202011%20BWS%20Annual%20Report_PHOTOS.pdf
96
http://www.hawaiidws.org/


The Maui Department of Water Supply (DWS) provides potable water in five areas:
Central Maui, Upcountry Maui, West Maui, East Maui, and Molokaì.97

There are several potable drinking water systems on Molokaì: the Maui County
Department of Water Supply (DWS) in eastern Molokaì;; the State Department of
Hawaiian Home Lands (DHHL), and the Hawaii Department of Agriculture (DOA).98
Molokai Ranch/Molokaì Properties Limited (MPL) operates three PUC-licensed
water companies in western Molokaì: Wai'ola O Molokaì, Molokaì Public Utilities
Inc. (MPU), and Mosco.99

The Lanaì Department of Water Supply (DWS) is a privately-owned water utility,
regulated by the PUC.100

This is a potential and largely untapped hydro-power-generating resource within
Hawaiì.

Biofuels

While there are numerous types of renewable energy than can create electricity,
there are only a few options for transportation.

Ground transportation can be powered by gasoline, biofuel, hydrogen or electricity.
Air transportation can be powered by jet fuel (fossil fuel) or biofuel. Marine
transportation can be powered by coal, oil, nuclear and biofuel. In the short term
biofuels should be used for all transportation needs. In the longer term electricity
can replace biofuels for ground and marine transportation, reserving biofuels for
aviation.

Using waste oil, such as used french-fry grease, to generate biodiesel, is an
effective way of reusing a waste product. Having small fields of sustainably grown
crops to produce biodiesel for limited local use is also an alternative to traditional
fossil fuel use. Both methods can produce small amounts of biodiesel that can be
used in heavy machinery and heavy industrial transportation vehicles. Ideally, the
crops grown should be able to survive without irrigation (a major source of energy
use) and not grown with fossil fuel-based fertilizers and pesticides;; nitrogen
fertilizers are a very potent greenhouse gas.

The leading biofuel producer in Hawaiì is Pacific Biodiesel. In 1996 Pacific
Biodiesel started operating the first modern commercial biodiesel plant in the
United States. Pacific Biodiesel started by re-using waste material at the central
Maui landfill. The company then began creating sustainable biodiesel facilities that
worked hand-in-hand with local farmers and local investors.

97
http://www.co.maui.hi.us/index.aspx?NID=772;; http://www.co.maui.hi.us/index.aspx?NID=126
98
http://hi.water.usgs.gov/studies/molokai/
99
State agency bars plan to shut down Molokai utilities By Edwin Tanji, The Maui News. (June 7,
2008): http://the.honoluluadvertiser.com/article/2008/Jun/07/br/hawaii80607042.html
100
http://www.co.maui.hi.us/index.aspx?nid=1772


Pacific Biodiesel’s newest facility is located in Keaau, on Hawai`i Island, has a
capacity of 8,000 gallons per day and will utilize zero-waste, super-efficient
processing technology. Pacific Biodiesel has recently been reorganized, and is now
called Pacific Biodiesel Technologies. The company currently manages biodiesel
plants in Hawaii, Oregon and Texas.

Pacific Biodiesel believes that “a small environmental footprint is an essential aspect
of a sustainable biodiesel facility.101 Pacific Biodiesel facilities “are designed to be
the most flexible in the industry, accepting multiple feedstocks, and providing
maximum scalability ... [and use] advanced waterless technologies.”102

In 2006 Pacific Biodiesel’s co-founder Kelly King, along with activist Annie Nelson
and actress/film maker Daryl Hannah, founded the Sustainable Biodiesel Alliance
(SBA).103

The Gas Company104 is developing a biofuel pilot plant in West O`ahu to produce
one million gallons a year of renewable fuel from fish oil.105

Crop Conversions106

Crop Gallons/Acre
Algae 1500-3000
Palm Oil 500
Coconut 230
Soy 60-100
Sunflower 80
Hemp 26

101
http://www.biodiesel.com/index.php/technologies/biodiesel_process_technology
102
http://www.biodiesel.com/index.php/technologies
103
http://test.sustainablebiodieselalliance.com/~sustai18/dev/about.shtml
104
http://www.hawaiigas.com/
105
http://www.hawaiirenewable.com/wp-content/uploads/2011/12/Renewable-fuel-project-uses-fish-
oil-to-make-natural-gas-Hawaii-News-Honolulu-Star-Advertiser.pdf
106
http://en.wikipedia.org/wiki/Biodiesel


CHAPTER 5. VARIABLE ENERGY RESOURCES

Unlike firm baseload power, variable (intermittent) resources are available some of
the time but not all of the time. When they are available, over the course of a day
or year, the resource fluctuates in output from zero to its maximum.

Ocean Wave Energy

Wave Energy Systems should not be confused with waves crashing down along
reefs and the coastline. Rather, they get their energy from the wave action of
water rising and falling in the open ocean. Waves are generally far more predictable
and consistent than wind, or even sun, which can be blocked by clouds. Thus wave
energy systems are one of the most baseload or firm of the variable (intermittent)
energy systems. A full scale wave energy system was built and tested off the coast
of Australia in 2010 (although a powerful storm subsequently destroyed the unit).

The system best-suited for Hawaii is the Oceanlinx Oscillating Water Column, which
can generate net energy from a six-inch ocean swell, has only one moving part,
located above the water line, and uses no oils or toxic fluids. The International
Academy of Science chose the Oceanlinx system as one of the Top 10 Most
Outstanding Technologies of 2006. In general, the Oceanlinx system has the lowest
cost per energy output of any wave energy system. There are plans to deploy a
small Oceanlinx system off the coast of Maui.

The Oceanlinx Blow-Hole (Oscillating Water Column)
Wave Energy System107 consists of a compartment
with water at the bottom and air on top. When a
wave arrives, the water level rises and air or
air/water is forced out of the blowhole. When the
wave recedes, air is sucked back into the blowhole.
A two-way turbine spins in the same direction as
the air goes in and out, generating electricity.

Oceanlinx and MECO have been in negotiation for years. The utility “talks the talk”
on finding alternatives to fossil fuels, but has dragged out the negotiations. In 2009
the Federal Energy Regulatory Commission, which oversees all hydroelectric
facilities, issued a preliminary permit to Oceanlinx.108

Wave Analysis (2012)

According to the U.S. Department of Energy (January 27, 2012)109 in Tapping into
Wave and Tidal Ocean Power: 15% Water Power by 2030, “The wave and tidal
resource assessments, combined with preliminary results from ongoing DOE

107
http://www.worldchanging.com/archives/003776.html
108
Star Advertiser, Feb 12, 2012.
109
Mapping and Assessment of the United States Ocean Wace Energy Resource , EPRI Technical
Report 2011 http://www1.eere.energy.gov/water/pdfs/mappingandassessment.pdf


assessments of ocean current, ocean thermal, and hydropower opportunities,
indicate that water power can potentially provide 15% of our nation’s electricity by
2030. The West Coast, including Alaska and Hawaii, has especially high potential for
wave energy development.”110

Waves are different in Hawaiì than along the U.S. mainland coastlines, since the
Hawaiì region experiences a greater variety of orientations and prevailing wave
directions.

The total available wave energy resources along the U.S. outer continental shelf (at
an offshore depth of 200 meters) is estimated to be 2,640 billion kWh/yr.;; close to
130 billion kWh/yr. is located in and around Hawaiì. However, only part of the
available wave energy is considered to be a recoverable resource (that is, it can be
captured for electricity use). The recoverable resources for the U.S. is about 1,170
billion kWh/yr., of which 80 billion kWh/yr. are in Hawaii. This is eight times the
statewide energy demand of 10 billion kWh/yr.

Wave Analysis (2004)

According to EPRI’s Offshore Wave Power in the US: Environmental Issues
(2004),111 “Like any electrical generating facility, a wave power plant will affect the
environment in which it is installed and operates. [] We conclude that, given proper
care in site planning and early dialogue with local stakeholders, offshore wave
power promises to be one of the most environmentally benign electrical generation
technologies. We recommend that early demonstration and commercial offshore
wave power plants include rigorous monitoring of the environmental effects of
plants and similarly rigorous monitoring of a nearby undeveloped site in its natural
state (before and after controlled impact studies).''112

In the summer of 2007 HECO hosted several meetings on ocean energy. HECO
wrote a Draft Report that rejected ocean energy. The Final Report was re-written by
the group and included a preface written by LOL's Assistant Executive Director Kat
Brady. The Ocean Energy Development Guidelines113 (July 2007) were approved by
all present except those who represented agencies and weren’t able to adopt a
position within the group.114

110
Section 4: Results for Available Wave Energy Resource Table 4-4 Hawaii Available Wave Energy
Resource by Major Island, p. 4-3 http://www.doe.gov/articles/tapping-wave-and-tidal-ocean-power-
15-water-power-2030
111
Principal Investigator: George Hagerman. Contributors: Roger Bedard (EPRI) December 21, 2004.
www.epri.com/oceanenergy/attachments/wave/reports/007_Wave_Envr_Issues_Rpt
112
The EPRI 2004 Estimate for Hawaii of 300 TWh/yr and the current Estimate for the Outer Shelf of
130 TWh/yr are not comparable. EPRI's 2004 estimate for Hawaii was along the northern boundary of
the U.S. as far west as the Midway Islands. The present estimate extends only as far west as Kauai,
and encompassed the entire circumference of the islands (not just their northern exposure).
113
http://hawaii.gov/dcca/dca/web_references/other_sites/ocean-energy-development-guidelines-
final-word.pdf
114
The members of the group are list in
http://www.hawaiisenergyfuture.com/Images/Ocean_Energy.pdf


Ocean Energy Development Guidelines Preface:

E Komo Mai

(Welcome),

Mahalo for considering Hawaiì as a site for your ocean energy project.

As island people we are acutely aware of climate change and its impacts, as well as
our responsibility to be good global citizens by reducing our carbon emissions and
footprint. Our people realize that to do this we must aggressively increase our use
of local resources, such as our surrounding ocean, to produce energy. Our
legislature just passed, and the Governor signed Act 234 – Hawaiì’s first bill
regulating greenhouse gases.

There are several things about Hawaiì that differentiate us from any other place on
the planet.

culture
- Native Hawaiian rights are protected under the Hawaiì State Constitution
- Our natural resources are protected under the Hawaiì State Constitution
- All beaches in Hawaiì are public – meaning everyone has equal access
- All submerged lands are held in trust for the people of Hawaiì
- Native Hawaiians are the indigenous people of these islands
- Our two official languages are Hawaiian and English
- We are the most isolated archipelago on the planet
- We are the most oil dependent state in the nation

A broad cross-section of our Oàhu community was convened to create a tool to
help you better understand our communities, our relationship with the ocean, and
the kinds of issues that are of interest to our people relating to ocean energy.

We hope that you find our efforts helpful!

Wind

The sun heats different parts of the earth (water, land, forests, glaciers, cement
pavements) at different times (day, night, summer, winter) and at different rates.
When warm air rises, colder air moves in. A wind energy system transforms the
kinetic energy of the wind’s movement into mechanical power (raising water,
grinding grain, pushing a sail) or into electrical power. There are two basic designs
of wind electric turbines: vertical-axis (''egg-beater'') style, and the horizontal-axis
(propeller-style) machines.


Wind power technology has been used for at least thirty-five centuries. “At the end
of the 19th century there were more than 30,000 windmills in Europe, used
primarily for the milling of grain and water pumping.”115

Horizontal and Vertical Wind Shanah Trevenna and the Saunders Hall
Turbines 116 (University of Hawaii, Manoa) Vertical Axis
Wind System donated by Energy
Management Group

In 1991 the Pacific Northwest Laboratory (PNL) of the Department of Energy (DOE)
estimated that of the wind power resource available in the United States, 9% of the
lower forty-eight states had "good" (class 4) or "excellent" (greater than class 4)
wind resources, and the total amount of U.S. land with "excellent" wind
characteristics, with moderate exclusions, is just over one percent of total land
area. This would support approximately 3,500 gigawatts (GW) of wind capacity,
with nearly eight megawatts (MW) of rated capacity per square kilometer. The
rated (peak) wind capacity of 3,500 GW is about five times the 713 GW of 1999
installed conventional utility and non-utility generating capacity in the United
States.117

Installed conventional utility and non-utility generating capacity in the United
States has nearly doubled since 1991, to about 1200 GW.118

The potential wind power resource of the U.S., or what could be developed without
incurring undue nuisance noise, and adverse impacts to birds, visibility or health, is
estimated to be between twice to ten times the entire electricity consumption of the
U.S.119
115
http://practicalaction.org/docs/technical_information_service/wind_electricity_generation.pdf
116
www.awea.org/faq/wwt_basics.html
117
PNL, August, 1991. Report PNL-7789;; www.thegreenpowergroup.org/wind.html
118
http://www.eei.org/whatwedo/DataAnalysis/IndustryData/Pages/default.aspx
119
Id.


The use of only wind energy in conjunction with batteries (storage) could achieve
energy self-sufficiency for all of our energy needs: i.e., heat, light, electricity and
transportation.

Ironically, fossil fuel-based utilities favor large central station wind systems because
they require the utility to keep large amounts of spinning reserve or some other
form of energy storage, thereby perpetuating their existence and insuring a
revenue stream.

That is because utilities using fossil fuel must be ready to “ramp up” to match the
load (demand) when there is a sudden drop in available wind supply. HECO is
spending $2,400,000,000 ($2.4B) over a period of six years to upgrade its
generators, in part to handle wind fluctuations. The percentage of upgrades being
made specifically to handle intermittent energy resources, out of the total cost, has
not been publicly identified.

Furthermore, these costs are not reflected in the price of purchasing wind from
independent producers, but rather are hidden in rate cases. Thus ratepayers pay for
both wind and the fossil fuel used when the wind dies down. Utilities can appear to
be “talking the talk” (sounding green) while walking the same old walk: maintaining
and enhancing fossil fuel use.

HECO’s current plans to modernize its aging 19th century technology structure
focuses primarily, but not exclusively, on generation, transmission and distribution,
so that its large scale central station distribution system can be maintained while
integrating intermittent renewable energy systems into the utility’s grids.

This costly upgrade excludes the so-called “Big Wind” proposal to take 200MW each
of intermittent wind power from the islands of Molokaì and Lanaì and send it via
a billion-dollar undersea cable to the load center in Oàhu.

Capital Expenditures Budget ($M) (2012-15)120 HECO HELCO MECO

Transmission & Distribution 536 133 145
Generation 841 25 52
Other
Total 1,800 300 300

Since as noted above, building large industrial wind facilities requires fossil fuel
plants to be reconfigured to be able to match wind’s variability, some form of firm
renewable energy or storage will always be required (that is, there will always be

120
HECO, MECO and HELCO Application, dated March 31, 2011, for Approval of Issuance of Unsecured
Obligations and Guarantee. Docket 2011-0068. Capital Expenditures Program, (2010-2015). HECO:
pdf page 53, MECO: pdf page 73, HELCO: pdf page 93.


windy days and still days), these larger facilities will also require greater manpower
and oversight.121

Installing smaller wind facilities in different wind regimes may decrease the impacts
caused by wind fluctuations. For Hawai`i this implies that small rooftop and stand-
alone wind systems might be more effective than industrial scale facilities: just as
wind gains speed as it rises over mountains, so to it gains speed as it rises over
buildings. Small wind systems could be installed on 1,000s of rooftops.

Small wind turbines A “Windsave” micro turbine Rooftop wind turbines on a
on the roof of an installed on a rooftop in building in Bosnia1 (Veneko/
office in London. 122 Scotland.123 Bergey Windpower)124

Of course, rooftops could be used for multiple renewable energy systems: solar
water heaters, photovoltaic panels or concentrated solar power, and micro-wind,
thereby maximizing each building’s on-site generation.

The major determinants in the amount of wind energy that can be harnessed are
the average speed of the wind, the consistency of the wind, and the volume swept
by the turbine blades.125

121
What's Keeping Me Up at Night - The Political Economy of Wind, Chairman Travis Kavulla, Montana
Public Service Commission (February 16, 2012). Monthly Essays. National Regulatory Research
Institute (NRRI).
NRRI was founded by the National Association of Regulatory Utility Commissioners (NARUC) in 1976.
http://communities.nrri.org/monthly-essays-
detail;;jsessionid=64140F78E5A0DF35FE04CBDF8B32083D?p_p_id=33&p_p_lifecycle=0&p_p_col_id=c
olumn-
1&p_p_col_pos=1&p_p_col_count=2&_33_struts_action=%2Fblogs%2Fview_entry&_33_redirect=351
516&_33_linkFullViewPage=351516&_33_linkListViewPage=351442&p_r_p_564233524_displayDateFr
om=&p_r_p_564233524_displayDateTo=&_33_cur=&_33_entryId=357113
122
Renewable Energy World. January / February 2007. http://www.thailand-
energy.info/News/34001132.htm
123
Ibid.
124
Ibid.
125
http://practicalaction.org/docs/technical_information_service/wind_electricity_generation.pdf;; “The

kilograms per cubic meter (kg/m3), A is the swept rotor area in square meters (m2), V is the wind
speed in meters per second (m/s) -- gives us the power in the wind, the actual power that we can
extract from the wind is significantly less than this figure suggests. The actual power will depend on


Wind Energy Impacts

All energy projects have positive and negative economic, environmental, social,
cultural and climate impacts, and industrial-scale wind plants are no exception.

Often wind sites are selected and sited in rural communities, where demand is
small, while the power generated must be transmitted at great expense over long
distances to urban centers with higher demand. The aesthetic impacts in rural areas
are often dismissed by urban residents as being NIMBY-ism126 in the face of a
perceived “greater good” for everyone.

Turbine manufacturing also relies on magnets made from trace minerals that are
mined in non-environmentally friendly ways. China is now the world leader in wind
turbine production: Inner Mongolia has “more than ninety per cent of the world’s []
reserves of rare earth metals, specifically neodymium, the element needed to make
the magnets [for] wind turbines.” The extraction and processing of neodymium in
Inner Mongolia has proven to be an environmental nightmare.127

Solar (Photovoltaic)

Earth:128 “Each day more solar energy falls to Solar Ledge: PV awnings at the
the Earth than the total amount of energy the University of Texas.130
planet’s 6.1 billion inhabitants would consume
in 27 years.”129

several factors, such as the type of machine and rotor used, the sophistication of blade design, friction
losses, and the losses in the pump or other equipment connected to the wind machine. There are also
physical limits to the amount of power that can be extracted realistically from the wind. It has been
shown theoretically that any windmill can only possibly extract a maximum of 59.3% of the power
from the wind (this is known as the Betz limit). In reality, this figure is usually around 45%
(maximum) for a large electricity producing turbine and around 30% to 40% for a wind pump.”
126
Generally meaning “not in my back yard” although opponents of industrial scale wind playfully
suggest it means “next idiot might be you.”
127
http://www.dailymail.co.uk/home/moslive/article-1350811/In-China-true-cost-Britains-clean-
green-wind-power-experiment-Pollution-disastrous-scale.html
128
http://rst.gsfc.nasa.gov/Sect16/full-20earth2.jpg
129
National Renewable Energy Laboratories. www.nrel.gov/documents/solar_energy.html


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