Category Archives: Peak Oil

Geothermal, History, Mauna Kea, Peak Oil, Science

Law of the Splintered Paddle & Today

Richard Ha writes:

Kamehameha's Law of the Splintered Paddle has modern-day application. To those who aspire to be ali’i as they point their fingers in the air and pronounce what we must do to preserve the past: do not forget the rubbah slippah folks. 

You who want to be our ali‘i, our leaders – I don't see you leading us forward, but only back. You want to keep everything the way it used to be, while we are marching into crisis.

The rubbah slippah folks have the right to disagree with the (self-proclaimed) ali’i if those "ali‘i" do not take care of the people.

Read this historical note, from Wikipedia about the "removal of chiefs" due to the mistreatment of common people intolerant of bad government:

It has been noted that Kānāwai Māmalahoe [the Law of the Splintered Paddle] was not an invention of Kamehameha I, but rather an articulation of concepts regarding governmental legitimacy that have been held in Hawaiʻi for many prior generations. Countless stories abound in Hawaiian folklore of the removal of chiefs – generally, but not always, through popular execution – as a result of mistreatment of the common people, who have traditionally been intolerant of bad government. As a shrewd politician and leader as well as a skilled warrior, Kamehameha used these concepts to turn what could have been a point of major popular criticism to his political advantage, while protecting the human rights of his people for future generations.

The price of oil is four times higher than it was ten years ago and the price of everything is through the roof (and still going up). More and people people cannot afford to live here; in fact, more Hawaiians live outside Hawai‘i than on these islands. Isn't that the same as losing our land?

How are you addressing that? How is trying to shut down our geothermal resource (which will substantially reduce our electricity costs), trying to outlaw our biotech options (which will substantially reduce our food costs), and trying to keep out the TMT (which will open up all sorts of new options), helping our people?

The world is changing. There is more and more homelessness. More than half of all Hawaiians no longer live in Hawai‘i. Young folks cannot find jobs. Farmers are getting older and older, because young people are not going into farming.

What will happen to the rubbah slippah folks in the face of finite resources? Those who aspire to be ali‘i, remember this: "You cannot be ali’i if you cannot feed the people."

  • Geothermal is a gift from Pele that will protect us from electricity and other costs that are spiraling out of control. Why would anyone aspiring to be ali’i want to take away this gift in the face of declining resources?
  • The Thirty Meter Telescope brings our young people great opportunity and inspiration, and it brings the island economic gain, jobs, and more than $50 million in cash to a fund for the education of our keiki. Why would anyone aspiring to be ali’i take these opportunities away from our future generations?
  • Biotechnology is a tool that will safely feed our people. Why would anyone aspiring to be ali’i take  this tool away from farmers trying to feed the people? Farmers representing ninety percent of the farm sales on the Big Island favor using biotech tools. Why look to outsiders for advice when Big Island farmers are telling you what you need to know?

If it wasn't used in pre-contact time, it's bad? Is that really your thinking? Would Kamehameha agree?

Lowering Electric Rates, Peak Oil, Renewable Energy Sources

Learning From Germany & Others’ Energy Plans: No Free Lunch

Richard Ha writes:

Germany attempted to transition to a green electricity generation more than ten years ago. Today, some of its electricity rates are the highest in Europe, and it is using coal for 45 percent of its electricity. The lesson here is that there really isn’t any “free lunch.”

From Bloomberg.com today:

Merkel’s Taste for Coal to Upset $130 Billion Green Drive

By Julia Mengewein – Sep 22, 2014

When Germany kicked off its journey toward a system harnessing energy from wind and sun back in 2000, the goal was to protect the environment and build out climate-friendly power generation.

More than a decade later, Europe’s biggest economy is on course to miss its 2020 climate targets and greenhouse-gas emissions from power plants are virtually unchanged. Germany used coal, the dirtiest fuel, to generate 45 percent of its power last year, its highest level since 2007, as Chancellor Angela Merkel is phasing out nuclear in the wake of the Fukushima atomic accident in Japan three years ago.

The transition, dubbed the Energiewende, has so far added more than 100 billion euros ($134 billion) to the power bills of households, shop owners and small factories as renewable energy met a record 25 percent of demand last year. RWE AG (RWE), the nation’s biggest power producer, last year reported its first loss since 1949 as utility margins are getting squeezed because laws give green power priority to the grids….  Read the rest

How is HECO going to both lower our electricity rates and increase intermittent power into the grid? Seems we are going to bet everything on natural gas. At $4/thousand cubic feet (mcf), it is very cheap. In Asia and Europe, it’s more than $11/mcf.

What happens when its price rises in 10 and 20 years? Where will we be then? Will we have a competitive advantage to the rest of the world? Or will we be struggling, like Germany is today?

Where will we be 10 and 20 years from now? We should be paying attention to what people like Marco Mangelsdorf, president of ProVision Solar, and others are saying about the PUC’s request for an energy action plan for the state of Hawai‘i.

HECO’s Response to the PUC’s Orders: Is the Media Right? With Marco Mangelsdorf

Mauna Kea, Peak Oil

OHA Will Not File Contested Case Hearing

Richard Ha writes:

The Office of Hawaiian Affairs trustees decided against filing a contested case hearing about the Thirty Meter Telescope.

Five of us flew over from the Big Island to testify at the OHA meeting. We were all concerned about the possibility of losing the education and employment opportunities that the TMT will bring to future generations. 

I was very impressed at the power of the testimony of the group from the Big Island. Wally, Nani, Herring and Bill’s testimony was eloquent, from the heart, powerful, and simple. I was very proud to be a part of this group of strong, community-minded people.

People

Left to right: Bill Brown, Herring Kalua, Wallace Ishibashi, Nani Kahea, and myself

After we testified, the OHA Trustees went into deliberations, and a few hours later we received word that the Trustees decided not to file a request for a contested case hearing.

Here is the testimony I gave:

Aloha trustees.

Please do not initiate a contested case hearing. Several things happened recently that could have a strong bearing on your decision.

My name is Richard Ha. I am a farmer on the Big Island and our family and our workers have produced more than a hundred million pounds of fruits and vegetables over the last 35 years. My family is Kamahele from lower Puna.

I was the only person from Hawai‘i to have attended five Association for the Study of Peak Oil (ASPO) conferences. I went because I wanted to learn about oil and how we could adapt to a world of rising oil costs.

Albert Bartlett, a professor of physics and a member of ASPO, said the greatest failing of humankind is its inability to understand the exponential function.

If someone stood in the middle of Yankee Stadium at 12:00 noon with an eye dropper, and started a drop of water and doubled it every minute and you were handcuffed to a chair at the top, how many minutes woukd you have to escape? The answer is 50 minutes. At what time would the stadium still be 93 percent empty? 12:45! At that point, the water would only be 5 feet high and hardly anyone would be aware that there was a serious problem ahead in just five minutes. That is the nature of compound growth.

Several weeks ago, the Energy Information Agency, the government agency that keeps track of energy information, said the Monterey Shale, consisting of two-thirds of the nation's oil reserves, was downgraded to just four percent of its previous estimation. The nation's total oil reserve supply before the announcement was estimated to be 100 years.  This means that our oil reserves is estimated to last somewhere around 34 years, and only if the price is high enough can we get all of it. So, if oil supply is limited, the price will eventually rise. 

The problem is that at $150 per barrel oil, our tourism industry will be hit hard. At $200 per barrel oil, an IMF economic team modeling that situation could not model any further because they were in uncharted waters. I heard the team leader, Michael Kumhoff say at the last ASPO conference that the results would be utterly improbable. Utterly improbable??? Scary words coming from an economist. 

My good friend Robert Rapier, a well-respected chemical engineer who has been on 60 Minutes and many news and magazines, gave his take on British Petroleum's recent annual report. He basically said that if it wasn't for the shale oil and gas boom in the U.S., the world would already be going down the backside of the oil supply curve. And if not for that, we could already have been seeing $150 to $200 per barrel oil.  That was just last week!

Will the shale gas and oil boom last? In the data from 19,000 oil and gas wells, we see that the average shale oil and gas well lasts only five years. Clearly that is not sustainable. In contrast, the Saudi old oil finds have lasted for more than 50 years. Things have clearly changed.

So, what happens if China, India and other countries start to become worried that we have economic trouble ahead? The Chinese know that you cannot be king if you cannot feed the people. Would they cut funding for the TMT? There is a strong possibility they and other countries would. The TMT represents money going out and no money coming in.

I was on the TMT subcommittee of the Hawaii Island Economic Development Board, so I was involved from the start. I volunteered because I was determined that if it was going to be done, it should be done right. Henry Yang, the new president of the TMT, was a good guy that you could do business on a handshake. He flew in to the Big Island 15 times and never talked to the press. He met with the people on the ground. The last trip he asked me where they should  go since they had a couple of hours. I suggested we go to Kupuna Day at Keaukaha. When we got there, the people were so used to him and Jean Lou Chameau, president of Cal Tech, visiting them, they just said, Come, come, come, go eat, where you guys going?

From meeting with the people, Henry Yang came to find out that the lowest common denominator that folks on all sides of the issue could agree ok was Keiki education. That is how the THINK $1 million annual education fund was born.

One of the most important principles I learned came from Kumu Lehua Veincent, former principal of Keaukaha Elementary school. When I first got involved, I suggested to him that we could ask the TMT folks to give his students five full-ride scholarships to the best schools in the nation. He thought about it a few minutes and then he said these profound words. He said simply: "What about the rest?"

And that is what this decision is all about. What about the rest?

Aloha

Peak Oil, Sustainability

What’s Happening in the Middle East: An Easy Analysis

Richard Ha writes:

The Middle East is on everyone’s mind: How will it affect oil prices? Will traders or oil companies just jack up the prices on every hint of bad news?

Robert Rapier explains what is going on in a way that we can all understand easily. This is the first part of a series that should be very interesting.

Here in Hawai‘i, let’s get busy working on solutions to our problems of food security and rising oil and gas prices.

From Energy Trends Insider: 

The Oil Markets as a Thanksgiving Turkey

       BY ROBERT RAPIER ON JUN 17, 2014 WITH 9 RESPONSES

This week BP (NYSE: BP) released their Statistical Review of World Energy 2014. This is always a big event for energy wonks, and as always I will break it down in a series of articles. My goal is always to flesh out important tidbits that were perhaps overlooked by the media. Here are some of the major findings from this year’s release that have been reported. In 2013:

  • US oil production had the largest increase in the country’s history
  • US oil demand grew at a faster pace last year than China’s, although China’s overall energy demand grew faster
  • Asia increased solar output last year more than Europe for the first time ever
  • Emerging economies accounted for 80% of energy consumption growth
  • Global oil production rose to a new all-time high

In one of those overlooked tidbits I like to point out, while global oil production did indeed set a new record — rising in 2013 by 557,000 barrels per day (bpd) over 2012 — without the US increase of 1.1 million bpd, global production would have declined by 554,000 bpd. But I will take a deeper dive into that starting next week. Today I want to talk about Iraq.

Or, more precisely the impact the unfolding events in Iraq have had on the global oil markets, and more specifically how those oil markets actually work. I had an interesting discussion with someone last week, after a remark was made about oil companies using any excuse — like potential supply disruptions in Iraq — to immediately jack up oil prices.

Read the rest

Big Island, Current Affairs, Food Safety Certification, Food Security, Geothermal, Government, Hydroelectric, Hydrogen, Peak Oil, Renewable Energy Sources, Science, Sustainability

Preparing for Climate Change, The Overview

Richard Ha writes:

I was asked to talk this morning at the Hawai‘i State Association of Counties 2014 Annual Conference, which was held in Waikiki. I spoke on the panel called Preparing for Climate Change. Here’s what I said.

***

Aloha everyone. Thanks for inviting me.

Food security has to do with farmers farming. If the farmers make money, the farmers will farm!

The Hawaiian side of our family is Kamahele, from lower Puna. All the Kamaheles are related. The Okinawa side of our family is Higa. The Korean side of our family is the Ha name. It’s about all of us in Hawaii. Not just a few of us!

I write an ag and energy blog Hahaha.hamakuasprings.com. It stands for three generations of us.

What is the difference between climate and weather? Neil DeGrasse Tyson, on Cosmos, describes it like the guy strolling down the beach with his dog. The dog running back and forth is the weather. The guy walking along the beach is climate.

Background: 35 years farming, more than 100 million pounds of fruits and vegetables. We farm 600 fee-simple acres which the family and 70 workers farm. Not having any money, we started out by trading chicken manure for banana keiki and went on to become the largest banana farm in the U.S. We were green farmers early. In 1992, we were first banana farm in the world certified Eco-OK by the Rainforest Alliance. In 2008, we were one of six national finalists for the Patrick Madden SARE award. We were one of the first farms in Hawai‘i to be food-safety certified.

When we needed to find a solution for a disease problem, we took a class in tissue culture and tried to culture the plants in our back bedroom. But there was too much contamination, from cat hair maybe. So we made our own tissue culture lab. We have our own hydroelectric plant, which provides all our electricity. Our trucks and tractors operate with fuel from Hawai‘i biodiesel.

My pop told me that, “Get a thousand reasons why no can.” I’m only looking for the one reason why CAN.

As we stroll along the climate change beach, there are two things that we notice.

The first is energy. Without energy, work stops. Petroleum products are finite and costs will rise. Farmers’ costs will rise and farmers’ customers’ costs will rise. How can we dodge the bullet?

I attended five Peak Oil conferences. The world has been using twice and three times as much oil as we have been finding. So the price is going to keep on going up. It will increase farmers’ costs and will increase the farmers’ customers’ costs. We need to do something that will help all of us, not just a few of us. Something that can help future generations cope.

That something is hydrogen. The geothermal plant can be curtailed at 70 MW per day. That’s throwing away 70 MW of electricity every night. The new eucalyptus chip plant Hu Honua can be curtailed by 10 MW for ten hours per night. The key to hydrogen is electricity cost. On the mainland it is made from natural gas. Here it can be made from running electricity through water. We are throwing away lots of electricity at night. We know that oil and gas prices will be steadily going up in the future. Hydrogen from our renewable resources will become more and more attractive as oil and gas prices rise. At some point we will have an advantage to the rest of the world. And as a bonus, hydrogen combined with nitrogen in the air will produce nitrogen fertilizer.

You may be interested to know the inside scoop about the lawsuit that Big Island farmers brought against the County.

Why? Clarity: Farmers are law-abiding citizens and we play by the rules. We thought that the Feds and the State had jurisdiction. We want clarity about the rules of the game.

Equal treatment: Only Big Island farmers are prohibited from using biotech solutions that all our competitors can use. How is that equal? It’s discriminatory against local farmers.

When the law was first proposed, they wanted to ban all GMOs. We asked what are papaya farmers supposed to do? They said, we can help them get new jobs, to transition. We were speechless. It was as if they were just another commodity. So farmers and ranchers got together and ran a convoy around the County building in protest. Then they said they would give the Rainbow papaya farmers a break. I was there when the papaya farmers had a vote to accept the grandfather clause for Rainbow papayas. There were a lot of young, second- and third-generation farmers there in the room.

In the end, the papaya farmers said, We are not going to abandon our friends who supported us when we needed help. That is not who we are. Then they voted unanimously to reject the offer. I was there and being a Vietnam vet, where the unspoken rule was we all come back or no one comes back, I could not have been prouder of the papaya farmers. That explains why the Big Island farmers are tight. Old-fashioned values. The rubbah slippah folks absolutely get all of this.

So who are these farmers? I am one. I don’t grow GMOs. It isn’t about me. I’ll make 70 this year and, like almost all the farmers, have never sued anyone. But there comes a time when you have to stand up for what is right.

The group we formed, Hawaii Farmers and Ranchers United, grows more than 90 percent of the farm value on the Big Island.

This is about food security. The GMO portion of food security is small. This is not about large corporations. It is about local farmers. It is not about organics; we need everybody. But organics only supply 4 percent of the national food supply and maybe 1 percent of Hawai‘i’s. Our organic farmers are not threatened by modern farming. Hawaii organic farmers are threatened by mainland, industrial-scale organic farms. That is why there are hardly any locally grown organics in the retail stores. It’s about cost of production. Also, on the mainland winter kills off the bad bugs and weeds and the organic farmers can outrun the bugs through the early part of summer. Hawai‘i farmers don’t have winter to help us.

Most importantly, this is about pro-science and anti-science. That is why farmers are stepping up. We know that science is self-correcting. It gives us a solid frame of reference. You don’t end up fooling yourself. In all of Hawai‘i’s history, now is no time to be fooling ourselves.

My pop told me that there were a thousand reasons why No Can. He said, look for the one reason why Can! He said to look for two solutions to every problem and one more, just in case.

He would pound the dinner table and dishes would bounce in the air and he would point in the air and say, “Not no can. CAN!”

We can have a better world for future generations. It’s all common sense and attitude.

***

Current Affairs, Geothermal, Peak Oil, Renewable Energy Sources, Sustainability

What Monterey Shale Oil?

Richard Ha writes:

The U.S. Energy Information Administration (EIA) made a dramatic announcement recently: it is revising its estimate of the Monterey Shale Oil supply downward by 96 percent.

Ninety-six percent is a lot.

Especially when you consider that the Monterey Shale Oil supply presented two-thirds of the United States’s oil reserves. It was estimated that we had 100 years of oil reserves left in this country altogether, but now that we know 66 percent of it doesn’t exist, there must be only 34 percent, or 34 years, of oil reserves remaining in the U.S.

However, the cost we would have to pay for oil companies to retrieve it would exceed what it would cost them to do so. In other words, if we consumers were willing to pay $1 million/barrel, all of those 34 years’ worth of oil could probably be recovered. But if we the people can only pay $150/barrel, we might only see ten years’ worth drilled. Hmm.

Those of us who attend Association for the Study of Peak Oil conferences (I’ve attended five now, the only person from the Big Island to do so) have known that the claim that the U.S. has a 100-year supply of oil was way overestimated. We are never going to be Saudi America.

Kurt Cobb writes about this at Resource Insights:

The great imaginary California oil boom: Over before it started

Sunday, May 25, 2014

It turns out that the oil industry has been pulling our collective leg. 

The pending 96 percent reduction in estimated deep shale oil resources in California revealed last week in the Los Angeles Times calls into question the oil industry's premise of a decades-long revival in U.S. oil production and the already implausible predictions of American energy independence. The reduction also appears to bolster the view of long-time skeptics that the U.S. shale oil boom–now centered in North Dakota and Texas–will likely be short-lived, petering out by the end of this decade. (I've been expressing my skepticism in writing about resource claims made for both shale gas and oil since 2008.)

California has been abuzz for the past couple of years about the prospect of vast new oil wealth supposedly ready for the taking in the Monterey Shale thousands of feet below the state. The U.S. Energy Information Administration (EIA) had previously estimated that 15.4 billion barrels were technically recoverable, basing the number on a report from a contractor who relied heavily on oil industry presentations rather than independent data.

The California economy was supposed to benefit from 2.8 million new jobs by 2020. The state was also supposed to gain $220 billion in additional income and $24 billion in additional tax revenues in that year alone, according to a study from the University of Southern California that relied heavily on industry funding.

But that was before the revelation by the Times that the EIA will reduce its estimate of technically recoverable oil in California's Monterey Shale by 96 percent–almost a complete wipeout–after taking a close look at actual data for wells drilled there already. The agency now believes that only about 600 million barrels are recoverable using existing technology. The 600 million barrels still sound like a lot, but those barrels would last the United States all of 40 days at the current rate of consumption….

Read the rest

We need to take a step back and reevaluate where we are and what we need to do. As I’ve been saying for years now, we need to get on with geothermal. For the Big Island, the path we need to take is clear.

A byproduct of the oil operations is natural gas, and it would be helpful if natural gas prices rose to help with the costs of development.

It’s kind of like curtailed electricity. If it could be sold at any price, it would help lower the bid price of geothermal and wind operations and would result in lower electricity costs for the rubbah slippah folks.

If curtailed electricity could be bought at a cheap enough price, it could also enable a hydrogen storage option. Then we could get a hydrogen fuel cell option for various motors. And we could look at converting hydrogen to ammonia, so we would have nitrogen fertilizer to help with our food security. 

Geothermal, Iceland, Peak Oil, Renewable Energy Sources

HECO Needs to Match Output to Customer Needs

Richard Ha writes:

Our electric utility needs to match up its output with customer needs. Renewable sources of electricity such as wind and solar have short- and long-term problems with fluctuation. That’s why the utility needs to have electricity generation units on standby.

We are so fortunate here to have geothermal electricity, which is not only stable but is also cheaper than wind and solar, all things considered.

And we know that geothermal works in Iceland. In spite of that country’s recent economic crash caused by irresponsible bankers, Iceland is one of the highest-rated countries in the world in terms of quality of life issues.

From the Christian Science Monitor:

Hawaii confronts ‘green’ energy’s bugaboo: batteries

Hawaii and California utilities are moving to add storage on their grids to accommodate ‘green’ energy and better match production energy production and consumption. But storage is still expensive. 

By Ken Silverstein, Contributor / May 11, 2014

Hawaii Electric Co. – no stranger to solar power – has a problem with the sun.

When it shines, so much energy from utility and home-based solar panels comes surging in that it can overload some circuits in the grid and, potentially, cause a power surge that damages home and office equipment. When the sun goes into hiding, the utility has to generate power from somewhere else. That’s why the utility is casting a net to find vendors that could supply it with the technology to store electricity….

Read the rest

Geothermal, Lowering Electric Rates, Peak Oil, Renewable Energy Sources

‘Behind the Plug & Beyond the Barrel’

Richard Ha writes:

I spoke on behalf of the Big Island Community Coalition (BICC) at the Hawai‘i Island Renewable Energy Solutions Summit 2014 on April 30th, which was titled “Behind the Plug and Beyond the Barrel," and here's what I said: 

BICC mission

Good morning. Thanks for the introduction. I will use just this one slide, and you can read our mission statement on it, which is to lower the cost of electricity. “To make Big Island electricity rates the lowest in the state by emphasizing the use of local resources.”

I would like to spend some time talking about who makes up the BICC.

Dave DeLuz, Jr. – President of Big Island Toyota.

John Dill – Contractors Association, and Chair of the Ethics Commission

Rockne Freitas – Former Chancellor Hawai‘i Community College

Michelle Galimba – Rancher, Board of Agriculture

Richard Ha – Farmer

Wallace Ishibashi – Royal Order of Kamehameha, DHHL Commissioner

Kuulei Kealoha Cooper- Trustee, Jimmy Kealoha and Miulan Kealoha Trust.

Noe Kalipi – Former staffer for Sen Akaka, helped write the Akaka Bill, energy consultant

Kai'u Kimura- Executive Director of ‘Imiloa.

Bobby Lindsey – OHA Trustee

Monty Richards – Kahua Ranch

Marcia Sakai – Vice Chancellor for Administrative Affairs, former Dean of UH Hilo, College of Business

Bill Walter- President of Shipman, Ltd., which is the largest landowner in Puna.

These folks are all operating in their private capacities. I'm chair of the BICC, and the only person from Hawai‘i to have attended five Peak Oil conferences. I've visited Iceland and the Philippines with Mayor Kenoi's exploratory group.

As you can imagine, the BICC has strong support all across political parties and socioeconomic strata. People get it in five minutes.

Oil and gas are finite resources, and prices will rise.  One note about natural gas: the decline rate of the average gas well is very high. Ninety percent of the production comes out in five years. This is worrisome.

Hawai‘i Island relies on oil for sixty percent of its electricity generation; the U.S. mainland only two percent.

As the price of oil rises, our food manufacturers and producers become less competitive, as we all know. Food security involves farmers farming. And if the farmers make money, the farmers will farm.

What can we do?  By driving the cost of electricity down, the Big Island can have a competitive edge to the rest of the world.

Since rising electricity rates act like a giant regressive tax, lowering electricity rates would do just the opposite. And since two-thirds of the economy is made up of consumer spending, this would be like "trickle up" economics. If the rubbah slippah folks had extra money, they would spend and everyone would benefit.

 The lowest-hanging fruit:

1. Geothermal. Allows us to dodge the finite resource bullet. It is the lowest-cost base power. The Big Island will be over the hot spot for 500,000 to a million years.

2. We throw away many lots of MW of electricity every night. Hu Honua will probably throw away 10 MW for ten hours every night. PGV, maybe 7 MW for ten hours.

3. Wind, too.

Maybe HELCO will allow us to move the excess electricity free. They don't make any money on the throwaway power now, anyway. What if we used it for something that won't compete with them? Then people could bid for the excess, throwaway power for hydrogen fueling stations, to make ammonia fertilizer, and to attract data centers. Hawaii could become the renewable energy capital of the world. People would love to come here and look at that. As airline ticket costs rise, the walk around cost in Hawai‘i would not.

The BICC call for lowering electricity costs could leave future generations a better Hawai‘i.  And that is what we all want.

Big Island, Geothermal, Hydrogen, Peak Oil, Renewable Energy Sources, Sustainability

‘Triple Bottom Line’ Approach to Renewable Energy

Richard Ha writes:

We need a “triple bottom line” approach to renewable energy options. They need to be socially sustainable, environmentally sustainable, and economically sustainable.

World-renowned economist, Nobel laureate, and New York Times best-selling author Joseph Stiglitz spoke on this at UH Manoa. His lecture, “Where long-term and short-term goals converge: Using sustainability as an impetus for economic growth,” starts at the 21:30 mark of this video.

Social sustainability has largely been ignored in many approaches to renewable energy solutions. The Big Island has the lowest median family income in the state, and that is not socially sustainable. Hawaiians leaving their ancestral lands in greater and greater numbers in order to look for work is not socially sustainable.

We need to pay more attention to this. Finding solutions that give folks on the lowest rungs of the economic ladder more spending money will benefit all of us, because two-thirds of our economy is made up of consumer spending.

Energy and agriculture are inextricably tied together, and the agricultural industry is vulnerable because of its dependency on energy. Nitrogen fertilizer, plastics, chemicals, etc., are all byproducts of petroleum.

What can we do to dodge the bullet? We can maximize the resources we have available to us here in a sustainable way.

On the energy side, we have geothermal, which will be available to us, according to the scientists, for 500,000 years. On the ag side, we have a year-long growing season. These are both huge advantages. We need to leverage them so we have a competitive advantage over the rest of the world.

Geothermal electricity puts us on the right side of the cost curve. And as natural gas prices rise, we will be able to competitively make hydrogen. We can use that hydrogen for transportation, as well as to manufacture nitrogen fertilizer.

In the ag industry, we should be maximizing technology to help us with disease and insect control, thereby lessening our dependency on natural gas.

Our tourism industry is also at risk as jet fuel rises in cost. But with the same low-cost electricity that helps our farmers and their customers, we would lower the walk-around cost of the average tourist’s budget. This would both support our tourism industry and bring money into our local economy.

From Peak Oil News:

GEOG Researchers Address Economic Dangers of ‘Peak Oil’

Researchers from the University of Maryland and a leading university in Spain demonstrate in a new study which sectors could put the entire U.S. economy at risk when global oil production peaks (“Peak Oil”). This multi-disciplinary team recommends immediate action by government, private and commercial sectors to reduce the vulnerability of these sectors.

Read the rest

In the final analysis, we can no longer think and act in silence. We need a long-range systems approach, based on the three pillars of sustainability – social sustainability, environmental sustainability, and economic sustainability.

If you’d like to know more, sign up at the Big Island Community Coalition and we’ll send you an occasional email letting you know what we’re doing and how you can help.

[The link is not working from this blog, though the BICC website is up. Please go to www.bigislandcommunitycoalition.com.]

Lowering Electric Rates, Peak Oil, Renewable Energy Sources, Sustainability

Response to Jack Roney’s Response

1 Comment

Richard Ha writes:

Jack Roney wrote an insightful and very well thought-out response to my BICC editorial Cheap Power for Hawaii Island, which ran in the Hawaii Tribune-Herald on April 13th.

We agree with Jack’s point, actually, that reliability should be the first priority of the electric utility. We just come at it in a slightly different way.

The Big Island Community Coalition (BICC) requires that renewable energy options be the best combination of the sustainability’s “triple bottom line:” They must be socially sustainable, environmentally sustainable and economically sustainable.

Presently, what does the best job of meeting the sustainability triple bottom line is the electrical grid. Specifically, it’s the most democratic way to deliver services that we have right now, and therefore it meets the socially sustainable requirement. (This doesn’t preclude something being developed in the future that better serves the sustainability triple bottom line.)

But more Hawaiians live outside of Hawai‘i now than in it, and rising electricity costs are going to cause more and more Hawaiians to leave the state and seek jobs so they are able to support their families. A condition that causes people of the host culture to leave their ancestral lands in greater and greater numbers is not sustainable.

In order for a renewable resource to replace a fossil fuel one, it must perform better on the triple bottom line assessment. It’s not only about the color of the oil – it’s about the cost, and the environmental and social impact of the alternative.

Solar is problematic, as Jack points out, from the standpoint of reliability. And folks who cannot leave the grid will find themselves increasingly paying more for the grid that those who can afford to leave will have left behind. That is not socially sustainable.

Geothermal electricity is by far the lowest cost and it’s available 24/7. It provides the same characteristics as oil but is environmentally friendly, and because of its low cost it’s more socially sustainable than oil. Fewer Hawaiians (and others) will have to leave Hawai‘i. And geothermal’s low stable cost, relative to petroleum oil, will make the Big Island relatively more competitive to the rest of the world regarding electricity. Geothermal satisfies the triple sustainability bottom line.

The PUC gave HELCO a 120-day deadline to explain how their recent 50MW request for geothermal proposals will result in lower costs to the ratepayer, and that deadline is up in a few days. HELCO will need to show a plan that retires oil-fired plants.

The BICC appreciates that the PUC, under Mina Morita’s leadership, has taken a view that ratepayer cost is a top priority. But this is not just a feel-good approach. The triple sustainability bottom line approach is a long term, pono, approach that does the right thing for us as well as future generations. It sets us up to be more competitive to the rest of the world.

Aloha, Jack Roney, for your well thought-out letter to the editor!