Recently, Gov. David Ige spoke about his energy policy, emphasizing the need for diverse solutions to break Hawaii’s dependence on imported oil.
At Hawaiian Electric, we couldn’t agree more. Electric customers want more options, better service and lower bills. Hawaii needs a diverse portfolio of renewable resources, and we remain committed to meeting these important energy goals by 2030:
» Tripling the amount of distributed solar, largely rooftop photovoltaic (PV);
» Achieving at least 65 percent renewable energy use; and
» Lowering customer bills by 20 percent.
More than 51,000 of our customers are benefitting from rooftop PV. On Oahu, 12 percent of customers have rooftop solar systems, compared to the national average of less than 1 percent, and Hawaii continues to extend its position as the undisputed national leader in this area.
As the governor noted, energy storage will be an important factor in Hawaii’s future. We are implementing these systems, including batteries, to increase our ability to add renewable energy, while mitigating potential disruptions to electric grids as more energy comes from variable solar and wind sources.
Smart grid technology, now being test deployed, is already helping customers monitor and control their energy use. We’re installing more automated relays and other equipment to detect and restore outages faster. Our increasingly smarter grids will expand customer service options, deliver more reliable service and improve integration of renewable energy. New voluntary "demand response" programs will provide customers financial incentives for helping manage the flow of energy on the grid.
And soon, customers who don’t have access to install PV or choose not to install it will be able to receive the benefits by participating in planned community solar facilities.
As we develop new options for customers, we also remain committed to rooftop PV. Contrary to some reports, our companies never stopped approving solar applications. So far this year, we have already approved over 4,000 applications, and that number grows every day. To ensure service remains reliable, all applications must still go through a technical review process approved by the Public Utilities Commission. This reduces the risk of damage to customer appliances and the grid and protects the safety of the public and our crews.
To address these issues and reach higher levels of solar, we recently completed a collaborative initiative with SolarCity, the Electric Power Research Institute and the National Renewable Energy Laboratory. This work has helped identify new technical requirements that now make it possible to more than double the threshold for interconnecting PV on high-use circuits.
Although this may be a surprise to some, our companies don’t lose money when customers install rooftop PV. The amount of PV on our grid has no effect on our revenue, but it has a big impact on the 88 percent of our customers who don’t have PV systems.
The costs of operating and maintaining the electric grid should be shared equitably by every customer who uses it. Customers with PV use the grid every day, relying on it in after the sun sets, when it’s rainy or cloudy, or when problems occur with their PV systems. However, they pay only a fraction of their share of the cost to operate and maintain the electric system.
Those costs are shifted to customers who don’t have PV, and the amount grows each year. At the end of 2013, that cost shift was approximately $38 million; by the end of last year, it had grown to $53 million.
It’s important to transition to a system that supports the continued growth of PV while ensuring everyone is treated fairly. By continuing to work with our customers and partners in the energy community, we will achieve the energy future we all want for Hawaii.
