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Hawaii: Lessons Learned from Transformation to Clean Energy

Tri‐Western Regions MeetingNational Association of State Energy Officials

June 5, 2013

Maurice H. Kaya, P.E.Senior Advisor, Renewable Energy, NASEO

Project Director, PICHTR

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The Hawaii Clean Energy Initiative• Strategic Partnership between Hawaii and 

USDOE signed in 2008

• Provide 70% of energy from efficiency and renewable energy within a generation

• Major transformation of markets

• Regulatory reform

• New Business Models to Emerge

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U.S. Department of Energy (DOE) & the State created the Hawaii Clean Energy Initiative to change this paradigm

0%10%20%30%40%50%60%70%80%90%

100%

2006 2010 2014 2018 2022 2026 2030

Goal: 70% clean energy by 2030

Business as usual

Percent clean energy – electricity and transportation

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Hawaii Clean Energy Scenario AnalysisWe believe our 70 percent clean energy goal for electricity sector is achievable through aggressive energy-efficiency goals, high deployment of wind and solar resources, and an interisland cable connection

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Hawaii is Blessed with Great Resources

0 2000 4000 6000 8000

Biomass

Wind

Geothermal

Hydro

Solar

MSW

Ocean

Annual Use, GWh

Hawaii Renewable Energy Potential (GWh)Kauai Demand

RE Potential

Oahu Demand

RE Potential

Molokai Demand

RE Potential

Lanai Demand

RE Potential

Maui Demand

RE Potential

Hawaii Demand

RE Potential

Oahu has the most energy demand, but most renewable energy sources areon the neighbor islands

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HCEI--Taking Clean Energy to Scale

Hawaii Challenge: 70% Clean Energy by 2030

40% RPS Largely variable RE generation (Solar & Wind)Requires connecting 4 individual island grid 

systems into one synchronized grid system through undersea cables

30% EEPS +20% from existing building retrofits 

• requires large % of deep retrofits • Requires high % of market adoption

High efficiency / Net Zero energy building codesReduce 70% of petroleum used for Ground Transportation

15% Electric Vehicle (EV) penetrationLarge infrastructure need

Develop locally produced renewable fuelsBalance natural resources and land use

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Legislative & Regulatory Accomplishments

• RE Infrastructure Program Docket

• Maui County PV/Wind Permit Guide, DSA 18.0 

• New home solar hot water heating mandate (HRS 196‐6.5)

• Act: RPS revised to 25% by 2020, 30% by 2030; created EEPS (4300 GWh reduction by 2030); allowed EPC contracting

• Act: subdivision exemptions for RE

• Comp. Bidding Framework Docket

• Act: Created $1.05 “Barrel Tax” for HCEI and food

• Act: Gas Co to submit RPS reports

• Decoupling Docket

• Act: Customer sited generation is not “public utility”

• Act: RE includes customer site gen.

• Act: Modifies REFSP   to allow biofuel 500Kgal/yr

• Act: Extends subdiv. exemption

• Act: Allows solar on better Ag lands

2008

2009

2010

20112012• Bill: Cable regulation

• Bill: Creates HERA 

• Bill: RE allowed for Ag ops

• Bill: Extends end. species taking law

• Act: EV law revision

• Act: PUC to consider diverse fossil fuels

• Act: Removes geothermal subzones

• HRS 201N refined

• C&CH Solar Permit ruling: 2012/INT‐1

• Hawaii County Ord. for RE permitting

Open Dockets:• Intragovernmental Wheeling (opened in 2007)• HECO Feed‐in Tariff (opened in 2008)• HECO Rule 14H  (opened in 2010)• Implementation of Reliability Standards (opened in 2011)• Integrated Resource Planning (opened in 2012)

• HEI/State of Hawaii Energy Agreement

• RE Portfolio Standards Docket 

• KIUC Tariff Docket 

• Act: Allows solar on Ag lands

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11.80%

13.83%

15.78%

17.72%18.75%

20.32%

2005 2006 2007 2008 2009 2010

RPS Levels (%

)Hawaii’s ProgressCompared to Other US States

1st Solar Water Heaters per Capita

1st Energy Savings Performance Contracting per Capita

2nd Cumulative Installed PV Capacity per Capita

2nd Power Purchase Agreements per Capita

3rd Clean Energy Economy Job Growth

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First in Nation Energy Savings Performance Contracting Per Capita

State Dollars per Capita ($)

Total Performance Contracting ($) Jobs Created (Job Year)

1.  Hawaii $117.09 $159,278,011 1,731 

2.  Kansas $90.81 $259,094,503 2,816 

3.  Idaho $90.27 $129,000,000 1,402 

4.  Massachusetts  $71.53 $457,696,106 4,975 

5.  Utah $66.89 $165,195,000 1,796 

National Average $31.46 $130,846,670 1,379 

Source: Performance Contracting Impacts ‐ State Comparison, December 2011 (Energy Services Coalition)

Our Private Sector is Responding

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Second in the NationCumulative Installed Photovoltaic Capacity per Capita

State Cumulative Through 2010 (WDC/person)

2010 Installations (WDC/person)

1.  Nevada 38.8 25.3

2.  Hawaii 32.9 13.6

3.  New Jersey 29.6 15.1

4.  California 27.4 6.8

5.  Colorado 24.1 12.3

National Average 7.0 2.9Source: 2010 U.S. Solar Market Trends, July 2011 (IREC)

Hawaii’s Results--PV

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Solar-Related Construction ExpendituresSolar-related construction expenditures reached 17% in 2011

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Distributed Renewable Energy SystemsAs of 2011, over 9,000 distributed renewable energy systems have been installedstatewide, totaling over 58 MW in capacity.

7 18 21 23 30 108 207567

1,168

2,189

5,266

29 kW 52 kW 65 kW 76 kW 166 kW 647 kW1,920 kW

5,863 kW

7,555 kW

12,321 kW

29,658 kW

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

0

1,000

2,000

3,000

4,000

5,000

6,000

2001 2003 2005 2007 2009 2011Incomplete

Total Cap

acity

 of Systems Installed

(kW)

Num

ber o

f Distributed

 Systems  HECO HELCO MECO KIUC

(Public Utilities Commission, Blue Planet Foundation, 2013)2011 Data incomplete, missing KIUC installations

9,000+ Distributed Renewable Energy Systems Total 

58+ MW Installed StatewideSolar PV installed in 2012 doubled combined previous year installations

Unprecedented Growth In DG

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Tangible Economic BenefitsHawaii is expected to have over 14,000 green jobs by 2012

15+% of construction expenditures are in the solar industry; solar employs >2,000

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Credit: Scott Seu, VP Resource Acquisition, HECO.

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Credit: Energy Planning and Policy Branch, DBEDT.

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Source: HECO/HELCO, August 2010.

Success in Deploying Renewable Creates New Challenges

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Compare the High Penetration Distribution Circuits in 2013: Hawaii Island (Source: www.heco.com)

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From Hawaii Electric Light Company, Oct 2012

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From Hawaii Electric Light Company, Oct 2012

2020

From Hawaii Electric Light Company, Oct 2012

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Renewable Energy Grid Integration Requires Continual Attention from SEOs

• High penetration of variable generation (wind and solar) is creating new challenges• New, unprecedented demands placed on grid operators from distributed and variable energy• Power quality and reliability a key concern for utilities• Variable resources can provide value to grid—ancillary services• Deploy energy efficiency resources more strategically—value from demand response

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Evolving Roles for State Energy Offices

• Progressive policies achieve success; requires vigilance• Evolving market conditions demand continual attention• Renewable energy grid integration requires technical attention• Work with both policymakers and regulators• Work to ensure that there is a level playing field• SUMMARY: SEOs can play a more strategic role to deploy RE and EE

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Mahalo

Questions?

Acknowledgement: Slides for parts of this presentation provided by and adapted from DBEDT, State of Hawaii, HECO, and US Department of Energy

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