Honolulu Star-Advertiser

Thursday, May 2, 2024 73° Today's Paper


Consider greater decentralization for power utility

Hawaii’s outside-the-box notion of becoming wholly supplied by renewable energy gained some outside-the-state support last week from a national expert, who sees a lot of potential in revolutionizing how we handle our electrical power.

Advocates see this as a healthy injection of new ideas in an energy market that will need them. And while prudence should always have the upper hand, the state’s utility regulators, facing a monumental decision over the future of Hawaiian Electric Co., will need to consider outside-the-box ideas to meet the state’s ambitious goals.

The expert, Jon Wellinghoff, offered one of those ideas. Speaking before last week’s two-day Maui Energy Conference, Wellinghoff proposed turning over management of Hawaii’s power grid to an independent third party that doesn’t answer to shareholders.

Wellinghoff, former chairman of the Federal Energy Regulatory Commission, said that what’s known in the industry as an independent system operator (ISO) would be a private, not-for-profit entity. That, he said, would be the most effective model for enabling competition among energy producers and ensuring that they have access to the grid.

This would not be an easy process, Wellinghoff acknowledged. There are undoubtedly technical issues to reckon with, and some system-wide investment in overall modernization.

Progress toward the reorganization would be marked off in years, not months. And any changes must be designed to save ratepayers money, not impose new cost burdens.

But in the end, Hawaii could have a less centralized system of grids and satellite micro-grids that could more nimbly accommodate energy from a range of sources.

The Public Utilities Commission, which regulates the electric companies, should remain open to such concepts.

The PUC has just finished lengthy hearings on the proposed merger of Hawaiian Electric Industries, the state’s largest utility group, with NextEra Energy Inc. A lot of industry observers have been watching the deliberations with some concern that the players are clinging too steadfastly to the legacy model of centralized energy production and distribution.

Among them: Blue Planet Foundation, which describes itself as a local nonprofit organization “committed to ending the use of fossil fuels on Earth, starting in Hawaii.” It supports the 100 percent renewable energy target date of 2045 and applauds Gov. David Ige, an outspoken critic of the NextEra merger plan, for championing it.

So far, the organization has lobbied for more breakthrough planning from Hawaiian Electric, which has had various resource plans rejected by the PUC as supporting the status quo.

Blue Planet consulted with another expert, Matthias Fripp, University of Hawaii assistant professor in electrical engineering, who believes the 100 percent renewable goal is doable. The model assumes that the busiest consumption periods could be matched with peaks in the daytime production of renewable energy, primarily solar.

He proposes to meet the challenge primarily by shifting when people tap energy through various means, by pricing off-peak rates attractively or encouraging electric vehicles recharging during the peak times.

There are various hurdles to overcome — electric vehicles, storage batteries and many “smart” technologies are still priced beyond the reach of most people.

However, those factors can change, and policymakers should move boldly toward what are too easily dismissed as lofty goals.

NextEra has not yet made commitments equal to the need for change. It would have been interesting to gauge the company’s reactions to Wellinghoff’s ideas, for example. But, as many noted with raised eyebrows, NextEra representatives did not participate in the Maui conference.

One strength NextEra offers is the capacity to make big changes. Without a doubt, the grid will need capital, and the Florida company has that in abundance.

But the grid will need innovation, too. In the final analysis, whoever runs Hawaii’s utilities may need a push to embrace a new way of doing business.

5 responses to “Consider greater decentralization for power utility”

  1. manakuke says:

    Long over due!

  2. BluesBreaker says:

    Hopefully, Randy Iwase and the PUC won’t be swayed by Wellinghoff’s off-the-wall ideas, which show his lack of understanding when it comes to the nation’s only energy market that is not connected to the nationwide grid. They Guernsey Report commissioned by Maui County suffered from the same ignorance of the differences between the situation facing local utilities and those on the mainland.

  3. Olopala says:

    Large scale electrical charging demand in terms of vehicles complicates progress toward renewable goals, both in volume and peak timing. That’s why Toyota’s bet on fuel cell vehicles makes sense with the hydrogen produced by solar power. The company is planning a hydrogen fueling station at Mapunapuna and hopes to start retail sales here late this year.

  4. localguy says:

    So laughable how so many “self appointed energy experts” like Ige, Blue Planet, Matthias Fripp, all say 100% renewable energy by 2045 is doable. Then when asked how, not one of them has a clue, a solid blueprint how to get their. Typical for bureaucrats.

    Nei would do well to reduce energy consumption by replacing all energy guzzling High Pressure Sodium (HPS) light bulbs with LEDs. Same for CFLs. Remove the mercury issue they have, replace with LEDs. Requiring all businesses and homes to convert would save energy big time. Push for more solar water or equally energy efficient installations.

    Next go with making Energy Star appliances Nei standard. All others would have an energy guzzling tax. Increase home energy efficiency standards, better insulation, double pane windows in hotter areas, use “Cool Roof” technology. All applicable to our school’s aircon issues.

    Use of home fuel cells powered by natural gas, methane, etc, would be energy efficient. Already in use in Japan, home unit sells for around $14k. http://www.bloomberg.com/news/articles/2015-01-15/fuel-cells-for-homes-japanese-companies-pitch-clean-energy

    Let’s be realistic. Technology to reach this goal does not yet exist at a price comparable or less than current power production processes. No reason for ratepayers to pay more. Let technology mature, lower energy usage, get there the best we can.

Leave a Reply