Solar Energy-Plus-Storage Park

The sunny state of Hawaii could be saving $3 to $7 billion by accelerating its transition to the solar energy goal. It’s been confirmed by the experience of Kauai, where a new storage park reduces the island’s electricity rates. A new law in Hawaii commits to pursuing solar energy rapidly.

Goals

Hawaii’s legislature aim of 100 percent clean energy by 2045 and Hawaiian Electric Industries is chasing a state-approved plan to fulfill this aim. Studies have shown that moving faster towards this aim could save Hawaii $3 to $7 billion between 2020 and 2045.

The savings range from $3 to $7 billion, reflects two points: 1) moderate renewables costs combined with low oil prices (for $3 billion in savings); and 2) low prices with high oil prices (for $7 billion in savings). Kauai has shed light on by depending on battery storage and to store solar energy for later release onto the network.

Kauai is a co-op utility giving power showing how to adopt to clean energy quicker. It’s advanced from 8 percent clean energy in 2011 to 44 percent now, which is 27 percent above for the rest of Hawaii. The island wants to create 50 percent of its electricity from solar energy by 2023, and 70 percent by 2030. The cost of solar energy from a new solar-plus-storage system on Kauai will be 11 cents per kilowatt-hour.

Designing Metrics​​​​​​​
Hawaii’s governor signed a law stating that by 2020, the utilities commission must create performance incentives and penalties to tie the utility’s profit to its achievement on performance metrics. This breaks the link between investment levels and allowed revenues.

Two of the key performance measures affordability of electric bills and quick integration of renewable energy. In response, Hawaiian Electric has been working with the National Renewable Energy Laboratory to research methods to modernize its island network to incorporate economical solar. The answer for Hawaiian Electric is to run the Rhodium Group’s numbers through its own utility model.

This would assist with creating its own estimate of the price reduction from a fast renewable energy ramp. If the public utility doesn’t have a planning model for this purpose, the utility may need to first upgrade its planning model then re-run the Rhodium Group’s analysis. Assuming that Hawaiian Electric validates the Rhodium study’s results then it should roll out an aggressive solar ramp.

They’ve been working with the National Renewable Energy Laboratory to understand how it can modernize its island network to incorporate economical solar to quicken its pace to accelerate its renewable energy transition.

These steps lead to its happier customers receiving lower electric rates while Hawaiian Electric could receive performance incentives under Hawaii’s new state law. If you’d like further information, click here.

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