State Moves Toward Locally Produced Renewable Energy

Richard Ha writes:

There’s been an important announcement in the newspapers about a series of renewable energy commitments by the State of Hawai‘i and the various Hawaiian Electric Companies.

Energy Agreement Among the State of Hawaii, Division of Consumer Advocacy of the Department of Commerce & Consumer Affairs, and Hawaiian Electric Companies

Summary of Key Agreements
Signatories: The Governor of the State of Hawaii; the State of Hawaii Department of Business, Economic Development and Tourism; the State of Hawaii Consumer Advocate; and the Hawaiian Electric companies.

All parties believe that the future of Hawaii requires that we move decisively and irreversibly away from imported fossil fuel for electricity and transportation and towards locally produced renewable energy and an ethic of energy efficiency.

As we move from central-station, oil-based power to a much more renewable, distributed and intermittent-powered system, we recognize the need to assure that Hawaii preserves a stable electric grid and minimizes disruption to service quality and reliability. In addition, we recognize the need for a financially sound electric utility.

Finally, we commit to a system of regulation that will transform our major utility from a traditional sales-based company to an energy-services provider that retains its obligation to serve the public with reliable energy, strives to source and integrate greener and lower-cost generation, and moves us to a more independent future.

These are some fundamental changes in direction. Hawaiian Electric agrees that the move to biofuels is not meant to preclude renewables. The utilities will move away from the least efficient oil-firing plants to renewables. Up until that statement, many felt the utilities were only concerned about their investment in oil-fired plants.

There is an understanding about the utilities changing their focus from sales to service and a forward-looking direction.

Hawaiian Electric will finance solar water heater installations.

There will be a rate cap for those least able to afford electricity. This is an effort to protect the most defenseless among us.

Regarding transportation, the parties agreed to aggressively pursue alternate fuel vehicles. Fossil fuel transportation is clearly not the answer.

Re: Net Energy Metering, there will be no cap on the number; it just cannot exceed 15 percent of the peak circuit demand. Also, excess energy will be sold back to the grid at retail rates. This is a strong incentive for people to pursue alternate energy systems.

On the strength of the above statement, I am committing to go ahead with a hydro-electric project. Net Metering with these conditions will help with food security, because it will help farmers make/save money. And, if the farmer makes money, the farmer will farm.

There are other provisions, as well, but these are the ones that stand out in my mind. The overall effect will be to encourage small energy production. I think having a lot of small producers gives a certain security in case “the boat does not come.”

Also, the money circulates in our own economy; not to mention that jobs will be created as these projects get going.

It’s a major shift in the right direction – away from fossil fuels.

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