Tag Archives: Renewable Energy

A Visit to Kauai Island Utility Cooperative

I was invited to visit the Kauai Island Utility Cooperative (KIUC) by its Board Chairman Phil Tacbian. He and Dennis Esaki, who is Vice President of the founding Board, gave me an orientation.

Kauai Island Utility Cooperative (KIUC) is a not-for-profit generation, transmission and distribution cooperative owned and controlled by the members it serves. Headquartered in Lihue, Kauai, Hawaii, the cooperative currently serves more than 32,000 electric accounts throughout Kauai. Committed to reinventing how Kauai is powered, KIUC is aggressively pursuing diversification of its energy portfolio to include a growing percentage of hydropower, photovoltaic, bio-fuel, and biomass.

It was my first visit and I had a very favorable impression of their corporate culture. This is a model that aligns the interest of the people with the interest of the utility. It’s evident that the employees are proud of their organization. They are coming up on their 10th anniversary celebration.

I toured the Kapaia Power Station. It includes a General Electric LM2500PH steam-injected combustion turbine. The unit can burn either naphtha or No. 2 fuel oil. Steam is injected at approximately 10,000#/hr for NOx control and 56,000#/hr for power augmentation. It appeared to me to be unique in its use of steam injection to enhance power generation. A small part of the CO2 was transported next door to an open raceway algae farm.

Back in 2002, KIUC agreed to pay Citizens Communications of Connecticut $215 million for Kauai Electric’s assets. The National Rural Utilities Cooperative Finance Corporation (CFC) had approved loans to KIUC for up to the total purchase price, plus they had a $25 million secured line of credit and a $60 million disaster recovery line of credit, which was from FEMA following Hurricane Iniki, which had happened 10 years earlier.

The combination of having a very willing seller, plus a line of credit from FEMA, was very helpful.

It did not appear there was much funding for infrastructure upgrades.

It’s clear to me that it took countless hours of volunteer time, plus careful analysis and implementation, to bring KIUC to this place it is at 10 years later. It was certainly not easy then, nor now, and the work continues. I was very impressed.

Are Undersea Cables to Transmit Electricity Feasible?

As I continue to look at ways to decrease our reliance on fossil fuels for our electricity generation so we will be free from the volatility of oil prices – particularly in this time where we know most of the “cheap oil” has already been found and processed, and global demand for oil exceeds its supply – I keep bumping up against the idea of undersea cables.

People are always questioning whether undersea cables are technologically feasible, and I thought you’d be interested to know that there at least 14 such undersea cables in operation today, transmitting electricity.

Some were built as far back as 1965, such as the Cook Strait submarine cables in New Zealand, which transmit electricity between the North and South Islands.

There is a very interesting history of the debate that went on in New Zealand before the cables were installed. What struck me is that the debate was in the 1950s and 1960s.

Some very modern cables have just been commissioned, such as the BritNed cable that connects the United Kingdom to the Netherlands and can transmit up to 1000MW. A short video on the BritNed web site details the making and laying of this cable.

Cables are currently being manufactured to be laid at depths up to 2000 meters, which is deeper than our Alenuihaha Channel (1900 meters) between the Big Island and Maui.

People used to believe that undersea cables couldn’t work in Hawai‘i because our channels are too deep. Undersea cables are clearly not the whole answer to Hawai‘i getting off of fossil fuels, but perhaps they can be part of a broad solution.

I am glad to know that the technology exists today, should we, the people of Hawai‘i, decide we want to share the robust renewable resources we have on each of our islands to create a reliable, stable, statewide electric grid that is not dependent on fossil fuels for its electricity generation.

What the Geothermal Working Group Found

Advantages of geothermal:

  • It is an indigenous resource
  • It generates revenue for the state
  • It generates community benefits
  • It provides stable power
  • It is less than half the cost of any of the renewable energy alternatives.
  • The Big Island will be over the geothermal “hot spot” for 500,000 to 1 million years

I want to share some highlights of the Geothermal Working Group’s final report.

Page 10, Revenues derives from geothermal:

Screen shot 2012-01-11 at 8.47.26 AM

Page 12:

IV. Recommended Steps for Hawaii State Legislators

– Make the allocation of geothermal royalties more transparent to show how benefits come back to the community. Designate the records of the allocations to be public domain.

– Establish a community advisory board to offer suggestions to the DLNR about how royalties generated by geothermal power plants are spent. The advisory board should be members of the communities that host existing or future geothermal power plants and/or those who are most impacted by the development of geothermal energy.

– Encourage the DLNR to use geothermal royalties to identify promising geothermal sites and to further develop the resource.

– In light of the probability that oil will reach $200 per barrel (Lloyds of London), the legislature is requested to commission a study to show the economic impact of various prices of oil.

– Facilitate development of geothermal with a critical review of the geothermal permitting process, regulatory capabilities, and possible investment incentives.

Page 5:

The Geothermal Working Group’s principal findings

– Geothermal is a renewable resource indigenous to the island of Hawaii that is dissociated from the price volatility of petroleum fuels.

– Geothermal can be a key component in a diversified energy portfolio for Hawaii County, both for the electrical grid and for transportation.

– In Hawaii, geothermal is a firm-energy resource at lower cost than fossil fuel. – Developing multiple geothermal plants is the most prudent approach.

– Geothermal has the potential to supply baseload electricity; long term reliability and the ability to supply grid management services (currently supplied by conventional fossil-fueled power plants) must be demonstrated in order to consider geothermal as the primary energy resource.

– With geothermal power plants, agricultural fertilizers, hydrogen, oxygen, and business-enterprise power can be produced for off-peak rates during the hours of curtailed electrical demand.

Page 9:

Overview

Geothermal energy can be developed to become the cheapest form of baseload power for Hawaii County. There are no importation or storage costs. Using geothermal as the primary source of baseload power will permit the county’s businesses to be more competitive with the rest of the world. Using geothermal as the primary source of baseload power will also help folks on the lowest rungs of the economic ladder—those who struggle with the cost of services.

In addition to stability and affordability, geothermal can leave less of an environmental impact than the commercially-available baseload power sources of electricity. There are no greenhouse gases, emissions and no oil spill risks.

The lower rates of off-peak geothermal electricity encourage the production of ammonia locally. Ammonia is an efficient hydrogen carrier that can be used to power internal combustion engines and as an aid to local agriculture as fertilizer. Light-industry business parks constructed near geothermal energy plants can use excess heat as a resource for heating vegetable and tropical flower hothouses, drying wood, and drying fish.

Benefits of geothermal energy to the community include sharing in geothermal royalties. In accordance with state law, the geothermal royalties are paid directly to the Department of Land and Natural Resources who allocate the royalties in three ways:

1. Department of Land and Natural Resources receives 50% 2. County of Hawaii receives 30% 3. Office of Hawaiian Affairs (OHA) receives 20%

Potential adverse impacts are listed below:

– Interference with worship of the Goddess Pele – Interference with certain Native Hawaiian practices – Rainforest destruction – Possible health and safety impacts – Disruption of the way of life for nearby residents – Hydrogen sulfide and other air quality issues – Noise – Increased strain on an inadequate infrastructure – Impact on native fauna and flora

Mayor Kenoi Announces Hawaii County Will Use 100% Renewable Energy by 2015

At the press conference announcing the Geothermal Working Group’s final report, Mayor Billy Kenoi announced that Hawai‘i County will use 100 percent renewable energy by 2015. That was significant.

Mayor Kenoi emphasized geothermal’s primary role as that of base load and he said we are lucky to have an array of options available, such as wind, solar and biomass. He mentioned that the County would be converting some of its passenger vehicle fleet to electrical. He said that we will need the help of the Federal, State and County governments, as well as that of the community.

He has already touched bases with Lieutenant Governor Shatz, and will be speaking with our congressional delegation next week. Senator Kahele and Representative Nakashima both reiterated the importance of enabling geothermal for base power.

More about the Geothermal Working Group’s final report press conference:

Big Island Video News: Geothermal Working Group Report Unveiled in Hilo

Hawaii 24/7: Geothermal Working Group Presents Findings

Although the topic of the press conference was the Geothermal Working Group’s final report, Mayor Kenoi’s announcement about taking the Big Island to 100 percent renewable energy by 2015 was the big news.

He is retaining the Geothermal Working Group, which will continue its work under the County of Hawai‘i.

As I have been saying, we are running out of time. Mahalo, Mayor Kenoi, for leading the Big Island to a safe place for us and future generations.

Following the Mayor’s lead, we can get there. Not, no can. CAN!

Fork in the Road

We are coming to a fork in the road. Which way do we want to go?  

Cost of Electricity Insert1
Cost of Electricity Insert2
If we stay on our present course, represented above by the blue line, electricity costs will keep on rising. The graph assumes a modest doubling of oil prices every 15 years, but it might be even more than double.

If we stay on the present path, we will have an increasingly difficult time paying our bills. Schools will pay more money for electricity, and less for education. Supermarkets will pay more for refrigeration, and farmers will get less for their produce. The hotel industry will be hit with higher electricity bills and fewer tourists. Small businesses will have a tougher time. More people will be homeless. And it will be the folks who can least afford it that will end up getting their lights turned off.

On the other hand, following the Ku‘oko‘a ala kai (path), where we use more geothermal as our primary base power, we can go to a place where we use all the renewable energy available to us and electricity costs stabilize. (See the red line above.) Our schools will be comfortable for our keiki to learn in. People will have more work opportunities and we will have fewer homeless people. Because our energy costs will be stable and reasonably priced, we can become competitive in many different areas of production. People will have more money in their pockets and so they will support local farmers, and more and younger farmers will start to grow things.

And because we helped each other to take this positive, renewable energy fork in the road, we will aloha each other.

In the uncertain future that is fast approaching, we will need to have stronger communities, we’ll need to make more friends and we will need to stay closer to our families. The Ku‘oko‘a path will lead us there.

Video: Renewable Energy Panel Discussion

Click on the link to watch a 4-minute video with Richard, as well as short videos by the others mentioned below.

VIDEO: Energy Common Sense for Hawaii panel discussion

June 1, 2011

Video by David Corrigan

Respected figures in energy philosophy and industry were given several minutes to express their opinions on the direction Hawaii should be headed at a recent Democratic Party convention in Kona.

A panel of experts and noteworthy advocates for renewable energy spoke to an audience at the Hualalai Academy about two weeks ago.

The panel included farmer and geothermal advocate Richard Ha, Representative Denny Coffman, attorney and Innovations Development Group consultant Mililani Trask, HELCO general manager Jose Dizon, and president of H2 Technologies Guy Toyama.

Read the rest and watch the videos here.

Abercrombie, Shatz and Leadership

As I write this, the first Election Day printouts are in and it looks like Neil Abercrombie and Brian Shatz have an insurmountable lead for the Governorship and Lieutenant Governorship of Hawai‘i.

We are truly at a crossroads in human history, and it is going to take real leadership to lead all of us to greener pastures. I have all the confidence in the world in Neil Abercrombie’s leadership abilities. He will take us there!

In terms of renewable energy, we must utilize our natural resources to their maximum potential. What we have here on the Big Island is truly extraordinary. While the rest of the world is fearful of a decline in available energy, we here in Hawai‘i have the most powerful energy source available to us. It is geothermal.

What if we could connect all the islands to this energy? What if we all shared, so everybody on every island pays the same low amount? What if this cost would hardly rise?

And what if this source of energy would last 500,000 to a million years? Wouldn’t we fix whatever it is that’s holding us back?

I feel good about Abercrombie and Shatz being elected, and confident that we will take the right path to the future.

For the sake of future generations: Not, no can. CAN!

I Have Lost Confidence In HECO

I am becoming more and more critical of the Hawaiian Electric Company’s (HECO’s) top-level decision makers, and of their policies. I am sad to say that I have lost confidence in their ability to lead us safely into the future.

A Wall Street Journal article last September noted that Spain – the world leader in solar technology – stopped its generous subsidy to support the solar industry. Basically, ratepayers could not bear the cost of the subsidy.

So I was not surprised recently to hear HECO say it could not accept any more solar. What I was surprised about was that they reversed their direction immediately. Did things change? No. It was a missed opportunity to educate the public about what is truly going on. They chose not to.

Recently, HECO was turned down regarding its attempt to initiate Smart Grid on O‘ahu, Maui and the Big Island. Smart Grid is a developing system, and there was no need to be the first in the world to implement this. At Hawai‘i’s size, it is much smarter to be best in the world at copying the most successful systems. You get a tested system that does not cost the ratepayers as much.

Several years ago, HECO chose the biofuel path, but it did not have a serious conversation about it with farmers. Farmers know that they will not grow anything for 7 cents per pound. They might switch from growing food to growing fuel for 35 cents per pound, but oil prices would have to be $400 per barrel before it would send that price signal.

And small farmers would not be able to grow biofuels on the kind of scale that HECO needs, anyway. More likely, it would be on the scale of redemption of cans and bottles.

When HECO brought the biofuel meeting to Maui, there was
discussion about ultimately importing palm oil from Indonesia. Many of the folks in the audience were distressed at what would happen to animal habitat, especially the orangutan. HECO replied that it would source “green” biofuel. 

We know that biofuels will be more expensive than fossil fuels. Will the rubbah slippah folks be able to afford it?  Can small businesses afford to pay the resultant higher electricity rates?

Is this the solution that will give a continuous, competitive advantage to the islands, relative to the rest of the world?

We should look at the resources available on each individual island before we decide what is best for that particular island. It is the cost of the fuel, not whether it is brown or “green,” that is important.

On the Big Island, we know it must be done right. Geothermal
for base power is: proven technology, a low-cost alternative, has the smallest footprint and gives off no greenhouse gases.

The Oil Age is only 150 years old, and already we are worrying about depletion. According to Jim Kauahikaua, Scientist-in-Charge at the Volcano National Park Observatory, though, the “hot spot” under the Big Island will last for half a million to a million more years.

What about HECO’s general renewable energy strategy? They
say they are for everything – wind, solar, geothermal, ocean thermal, biofuels, biomass, etc. But being “for everything” seems to be a way of not talking about any one thing. HECO does not put any effort into enabling geothermal, so we can only assume that they do not really want it.

On the other hand, they do really want biofuels. “Shameless”
comes to mind. I am not for geothermal exclusively. But I do think there should be a prioritization of the various resources based on many factors, such as: proven technology, relative competitiveness, scalability, net energy, social consequence, geographic appropriateness, etc. 

In other words, what will give us the best chance of surviving since we are living out here in the middle of the Pacific? “We are for everything” falls way short.

I think that the rubbah slippah folks intuitively have it figured out when they say: “One day, the boat not going come.” That is their shorthand way of saying: “One day, things will be too expensive, and the boat might as well not come.” In that scenario, we will be going back to the basics. The most important question one asks all day might be, “I wonder what color malo I going wear tomorrow?”

Two weeks ago, former Chancellor of UH Hilo Rose Tseng invited Bill Steiner, the Dean of the UH Hilo College of Tropical Agriculture and Forestry and myself to attend an REIS retreat put on by the UH Manoa College of Engineering.

I immediately noticed that the Big Island was not a focus and that geothermal was not on the radar. But we were able to express the Big Island’s concerns, and we were welcomed to participate fully. This is very encouraging.

HECO sent many of its people to the retreat because many of
those people work as engineers, and many graduated from the UH College of Engineering. I found HECO’s new Director of Renewable Energy Planning, Dora Nakafuji, impressive because she is willing to discuss alternatives in an inclusive way.

The most recent issue of Hawaii Business magazine describes the restructuring of HECO. I hope the new folks will change HECO’s
corporate culture, and take the time to understand the needs of the rubbah slippah folks. We can take the right path to survival and accommodate everyone’s needs at the same time.

In an ideal reorganization, HECO gains the trust of the community, and because its plan is mutually beneficial we go down to support it at the PUC. Not, no can. CAN!