RENEWABLE ENERGY INTEGRATION for ISLANDS May 23

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THEWORLDBANKCLEANENERGYGLOBALSOLUTIONSGROUP ESMAPVARIABLERENWABLEENERGYGRIDINTEGRATIONSUPPORTPROGRAM RENEWABLE ENERGY INTEGRATION FOR ISLANDS May 23 – 27, 2016

The Case of Hawaii MISSION

TheEnergySectorManagementAssistanceProgram(ESMAP)isa globalknowledgeandtechnicalassistanceprogramadministered bytheWorldBank.Itprovidesanalyticalandadvisoryservicesto lowͲandmiddleͲincomecountriestoincreasetheirknowͲhowand institutional capacity to achieve environmentally sustainable energy solutions for poverty reduction and economic growth. ESMAPisfundedbyAustralia,Austria,Denmark,Finland,France, Germany,Iceland,Lithuania,theNetherlands,Norway,Sweden, Switzerland,andtheUnitedKingdom,aswellastheWorld

RENEWABLE ENERGY INTEGRATION FOR ISLANDS THE CASE OF HAWAI’I

TheWorldBankCleanEnergy GlobalSolutionsGroupandthe EnergySectorManagement AssistanceProgram(ESMAP) haveorganizedastudytourto Hawaii,May23–May27,2016. Thestudytourisanopportunity forpolicymakersandtechnical expertsfromclientisland countriestolearnaboutthe experienceofHawaiiin supporting,deploying,and integratingmultiplerenewable energy(RE)andstorage technologiesintolocalgrids. Throughvisitstositesand institutionsonOahuandBig Island,theparticipantswillhave anopportunitytointeractwith localexpertsandlearnaboutthe regulatory/policysideofrenewabledeploymentaswellasabouttechnologiessuitablefor deploymentinanislandenvironment.TheobjectiveistofamiliarizeclientcountrieswithstateͲ ofͲartrenewableenergyandstoragetechnologiessuitableforanislandenvironment,their integrationintoislandgrids,andenablingregulatoryandpolicyenvironmentnecessaryfor achievingsuccessfulintegration. CONTENTS ITINERARY...... 3 CONTACTINFORMATION...... 7 THEHAWAIIANCONTEXT...... 8 QuickFacts...... 8 RecentEconomicDevelopments...... 9 EnergySectorinHawaii...... 9

Electricity...... 10 RenewableEnergy...... 10

HONOLULU,OAHU...... 12 StudyTourVisits...... 12

TheHawaiiPublicUtilitiesCommission...... 12 HawaiiElectricCompany...... 12 TheHawaiiNaturalEnergyInstitute...... 13 DBEDTͲHawaiiStateEnergyOffice...... 13 TheCleanEnergySolutionsCenter...... 14 SolarCityHQinHawaii...... 14 CovantaͲHͲPower...... 14

KONA,BIGISLAND...... 15 StudyTourVisits...... 15

NaturalEnergyLaboratoryofHawaii(NELHA)...... 15 BluePlanetFoundationRanch...... 16 PunaGeothermalVenture(PGV)...... 16

LISTOFPARTICIPANTS(BYCOUNTRY)...... 17 TOURATAGLANCE...... 18

2||THEWORLDBANKCLEANENERGYGLOBALSOLUTIONSGROUP&THEENERGYSECTORMANAGEMENTASSISTANCEPROGRAM ITINERARY

Day 1: Monday, May 23 – Oahu

TIME Session VENUE Ͳ Breakfastatplaceofchoice 9:00 Welcome,Logistics,andDay1Briefing LobbyofAstonattheExecutiveCentreHotel 1088BishopSt,Honolulu,HI96813

10:00 VisittotheHawaiiPublicUtilitiesCommission 465SouthKingStreet,#103 x Introductions Honolulu,HI96813 x Commissionoverview o Commissionroleandkeystakeholders o Hawaii’scurrentenergydevelopments o Planningforfuture–processandpolicies x Opendiscussion o Currentenergydevelopmentsandissuesin visitornations o Regulatorystructure(s)comparison x Lessonslearnedandanykeytakeaways 13:30 Lunch

15:00 VisittoHawaiiElectricCompany ASBTower x Welcome 1001BishopSt. x HawaiianElectricOverviewPresentation 8thFloorConferenceRoom x SystemOperationsOverviewPresentation Honolulu,HI96813 x IntegrationofRenewables o HawaiianElectricProgram&Policies o Issues,Opportunities&LessonsLearned o TechnicalTools&Partnerships MicroplanetLVRegulators VarentecPilotProjects x GroupDiscussion/AudienceQ&A 18:00 ReturntoAstonattheExecutiveCentreHotel 19:00 Dinneratplaceofownchoice

RENEWABLEENERGYINTEGRATIONFORISLANDS||STUDYTOUR:HONOLULU&KONA||MAY23Ͳ27,2016||3 Day 2: Tuesday, May 24, 2016 – Oahu

TIME SESSION VENUE Breakfastatplaceofownchoice 09:00 Day2Briefing LobbyofAstonattheExecutiveCentreHotel 1088BishopSt,Honolulu,HI96813

09:30 VisittotheHawaiiNaturalEnergyInstitute 1680EastͲWestRd x Welcome Honolulu,HI96822 x HNEIoverview x GridStartProgram x UtilityAssetsOwnershipmodels x Q&A 13:00 Lunch 14:00 VisittoDBEDTͲHawaiiStateEnergyOffice DepartmentofBusiness,Economic x IntroductiontoDBEDTandHSEO Development&Tourism x GuidingPolicyDirectives HawaiiStateEnergyOffice x Holisticapproachestoplanning Honolulu,HI96804 x ModernizingtheGrid x Q&A 16:00 SessionwithCleanEnergySolutionsCentre DepartmentofBusiness,Economic x ServicesprovidedbytheCleanEnergySolutionscenter Development&Tourism (CESC) HawaiiStateEnergyOffice x ExperiencewithCESCinSIDSandCARICOM Honolulu,HI96804 x Opendiscussion 18:30 ReturntoAstonattheExecutiveCentreHotel 19:30 Dinneratplaceofownchoice

Day 3: Wednesday, May 25, 2016 – Oahu

TIME SESSION VENUE Ͳ Breakfastatplaceofownchoice 09:00 Day3Briefing LobbyofAstonattheExecutiveCentreHotel DeparturefromAston 1088BishopSt,Honolulu,HI96813 09:30 VisittoSolarCityHQinHawaii SolarCityHQ x IntroductiontoSolarCity 599KaheluAvenue x SmartEnergyHome Mililani,HI96789 x KIUCDispatchableSolarPVͲStoragePlant x OpenDiscussion 12:30 LunchatSolarCityHQ 14:30 VisittoHͲPower(Covanta) CampbellIndustrialPark x Touroffacilitiesanddiscussionswithtechnicalstaff 91Ͳ174HanuaStreet,Kapolei,HI96707 16:00 Returntohotel

19:00 Dinneratplaceofownchoice

4||THEWORLDBANKCLEANENERGYGLOBALSOLUTIONSGROUP&THEENERGYSECTORMANAGEMENTASSISTANCEPROGRAM Day 4: Thursday, May 26, 2016, Oahu - Big Island

TIME SESSION VENUE Breakfastatplaceofownchoice 08:00 HotelCheckoutandDepartureforOahuAirportbytaxi LobbyofAstonattheExecutiveCentreHotel 1088BishopStreet,Honolulu,HI96813 09:10 Hotelcheckin LobbyofMarriottCourtyardKing DeparturefromMarriottCourtyard Kamehameha 75Ͳ5660PalaniRoad,KailuaͲKona,HI96740 12:00 VisittoNaturalEnergyLaboratoryofHawaii(NELHA) HawaiiOceanScience&Technology(HOST) x MeetingswithNELHAcompanies Park o DewpointSystems 73Ͳ987MakakoBayDrive o TheOceanThermalEnergyConversionFacility KailuaKona,HI96740 o TheAquionBattery/SolarStorageTestArray (Cellana) 13:30 Lunch 15:00 VisittoBluePlanetFoundationRanch Pu'uWa'awa'aRanch x ArrivalandintroductionsͲBriefoverviewofBluePlanet KailuaͲKona,HI96740 Foundationandtheranchmicrogrid x Tourofthemicrogridandlab o Primarygeneration(solarandwind;controls) o Storage(batteries;hydrolyzer) o Hydrogen(storage,electricity,andotheruses)b o TechnicalQ&Aanddiscussion x PresentationonBluePlanetFoundationanddiscussionof Hawaiienergylandscapeandsolutions o HowandwhyHawaiiadoptedthe100% renewableenergytargetandotherkeyevolving energypolicies o Highlighteffectiveandineffectivepast/current programs o Discussionofpendingsolutionsandbarriers o PolicyQ&Aanddiscussion x Introductionanddiscussionre:RenewableIslandsproject o Conceptandgenesis o Statusupdateonparticipationbyotherislands 19:00 EveningOff MarriottCourtyardKingKamehameha 75Ͳ5660PalaniRoad,KailuaͲKona,HI96740

RENEWABLEENERGYINTEGRATIONFORISLANDS||STUDYTOUR:HONOLULU&KONA||MAY23Ͳ27,2016||5 Day 5: Friday May 27, 2016 - Big Island

TIME SESSION VENUE 08:00 Breakfastatplaceofchoice&Day5Briefing MarriottCourtyardKingKamehameha 75Ͳ5660PalaniRoad,KailuaͲKona,HI96740 09:00 BusdeparturetoPunaGeothermalVenture MarriottCourtyardKingKamehameha [2hourstransport] 75Ͳ5660PalaniRoadd,KailuaͲKona,HI96740 11:00 VisittoPunaGeothermalVenture(PGV) 14Ͳ3860PohoikiRoad x Touroffacilitiesanddiscussionwithmanagementand PĈhoa,Hawaii96778 technicalstaffongeothermalpowergeneration 13:00 LunchinPunaatplaceofchoice 15:00 Optional:VisittoHawai॒iVolcanoesNaƟonalPark Hawai॒iVolcanoesNaƟonalPark 1CraterRimDrive,Volcano,HI96785 19:00 Returntohotel&ReflectionsonLessonsLearned MarriottCourtyardKingKamehameha 75Ͳ5660PalaniRoad,KailuaͲKona,HI96740 20:00 Dinneratplaceofchoice MarriottCourtyardKingKamehameha 75Ͳ5660PalaniRoad,KailuaͲKona,HI96740

6||THEWORLDBANKCLEANENERGYGLOBALSOLUTIONSGROUP&THEENERGYSECTORMANAGEMENTASSISTANCEPROGRAM CONTACT INFORMATION

COMPANY ADDRESS CONTACT AstonattheExecutiveCenterHotel 1088BishopStreet (808)539Ͳ3000 (HotelinHonolulu,Oahu) Honolulu,HI96813 CourtyardKingMahemahela 75Ͳ5660PalaniRoad (808)329Ͳ2911 (HotelinKona,BigIsland) KailuaͲKona,HI96740 HawaiiPublicUtilitiesCommission 465SouthKingStreet,#103 GermaineSalim,UtilityAnalyst Honolulu,Hawaii96813 Phone:(808)586Ͳ3757 [email protected] HawaiiElectricCompany 1001BishopSt#2900 RobbTanaka Honolulu,Hawaii96813 [email protected] HawaiiNaturalEnergyInstitute 1680EastͲWestRd RichardRocheleau,Director Honolulu,Hawaii96822 Office:808956Ͳ8346 Cell:808389Ͳ9944 [email protected] DepartmentofBusiness,Economic HawaiiStateEnergyOffice MaryAliceEvans Development&Tourism(DBEDTͲ Honolulu,Hawaii96804 [email protected] HawaiiStateEnergyOffice) KeiralynJ.Pease [email protected] CleanEnergySolutionsCentre NA MikeCallahan,PE,CEM NationalRenewableEnergyLaboratory Office:808Ͳ473Ͳ0605 Cell:303Ͳ305Ͳ9619 [email protected] SolarCityHQinHawaii 599KaheluAvenue BobRudd,VP,ProjectDevelopment,Energy Mililani,Hawaii96789 Storage&Microgrids Office:650.963.5100,x55508 Cell:415.827.5653 [email protected] CovantaͲHͲPOWER CampbellIndustrialPark IrisLoui,AdministrativeAssistant 91Ͳ174HanuaStreet Office:808Ͳ682Ͳ0227 Kapolei,HI96707 Fax:808Ͳ682Ͳ5203 [email protected] NaturalEnergyLaboratoryofHawaii HawaiiOceanScience& LaurenceSombardier,ChiefMarketingOfficer (NELHA) Technology(HOST)Park 808Ͳ327Ͳ9585,x244 73Ͳ987MakakoBayDrive [email protected] KailuaKona,Hawaii96740 BluePlanetFoundation Pu'uWa'awa'aRanch RayaSalter KailuaͲKona,HI96740 Phone:808.954.6144 [email protected] PunaGeothermalVenture(PGV) 14Ͳ3860PohoikiRd, MikeKaleikini PĈhoa,Hawaii96778 [email protected] Hawai॒iVolcanoesNaƟonalPark Hawai॒iVolcanoesNaƟonalPark Phone:(808)985Ͳ6000 1CraterRimDrive Volcano,HI96785

RENEWABLEENERGYINTEGRATIONFORISLANDS||STUDYTOUR:HONOLULU&KONA||MAY23Ͳ27,2016||7 THE HAWAIIAN CONTEXT

QUICK FACTS x Withitsmildtropicalclimate,HawaiihadthethirdͲlowestpercapitaenergyuseinthenationin 2013.ThetransportationsectoraccountedforabouthalfofHawaii'senergydemandin2013, ledbycommercialandmilitaryaviationfueluse. x In2013,Hawaiiimported91%oftheenergyitconsumedand,in2014,thestatehadthehighest electricitypricesinthenation. x Hawaiiisoneofsevenstateswithinstalledgeothermalcapacity.In2014,19%ofHawaii's renewablenetelectricitygenerationcamefromgeothermalenergy. x Hawaii'sutilityͲscaleelectricitygenerationfromsolarenergymorethandoubledin2014. Hawaiigenerated29%ofitsrenewableelectricityfrombothutilityͲscaleresourcesandsmallͲ scalesolarphotovoltaicpanelsinstalledonrooftopsacrosstheislands. x Hawaiiisthefirststatetosetagoalofproducing100%ofitselectricityfromrenewableenergy sources.Thestateplanstoreachthatgoalby2045.

8||THEWORLDBANKCLEANENERGYGLOBALSOLUTIONSGROUP&THEENERGYSECTORMANAGEMENTASSISTANCEPROGRAM RECENT ECONOMIC DEVELOPMENTS x Hawaii’seconomyisexpectedtocontinuepositivegrowthfortherestof2016andinto2017. Thisoutlookisbasedonthemostrecentdevelopmentsinthenationalandglobaleconomies, theperformanceofHawaii’stourismindustry,labormarketconditions,andthegrowthof personalincomeandtaxrevenues. x Hawaii’seconomydependssignificantlyonconditionsintheU.S.economyandkey internationaleconomies,especiallyJapan.AccordingtotheJanuary2016BlueChipEconomic ConsensusForecasts,U.S.realGDPisexpectedtoincreaseby2.5%in2016,0.1ofapercentage pointlowerthanthe2.6%growthrateprojectedintheNovember2015forecast.For2017,the consensusforecastpredictsanoverall2.5%growthinU.S.realGDP. x Overall,Hawaii’seconomy,asmeasuredbyrealGDP,isprojectedtoshowa2.3%increasein 2016;thesameasthegrowthrateforecastedlastquarter.TherealGDPgrowthforecastin2017 is2.4%,alsosameasthegrowthrateforecastedlastquarter. x Hawaii’sunemploymentrateisprojectedtobe3.5%in2016,0.2ofapercentagepointlower thanthepreviousforecast.Theunemploymentratein2017isnowprojectedtobe3.3%,also 0.2ofapercentagepointlowerthanthepreviousforecast. x Beyond2017,theeconomyisexpectedtocontinueitsexpansionpath,withjobgrowth projectedtobe1.1%in2018and2019.Visitorarrivalsareexpectedtoincrease1.8%inboth 2018and2019.Visitorexpendituresareexpectedtoincrease4.1%in2018and2019.Real personalincomeisprojectedtoincrease3.0%in2018and2019.Hawaii’srealGDPgrowthis expectedtoincrease2.4%in2018and2.2%in2019.Theunemploymentrateisexpectedto decreaseto3.1%in2018and2019. ENERGY SECTOR IN HAWAII IsolatedbythePacificOcean,HawaiiisthemostpetroleumͲdependentstateinthenation. Hawaii'sislandsstretchmorethan1,500milesacrossthecentralPacificOcean,fromtheBigIslandof HawaiiinthesoutheasttotheKureAtollinthenorthwest.Theeightmainislands,andthemorethan 100uninhabitedreefs,shoals,andatolls,arefartherfromamajorlandmassthananyotherislandgroup onearth.Located1,800milesnorthoftheequator,Hawaiiistropical,butitsclimateismoderatedby steadytradewindsandthesurroundingocean.Extremesofheat,cold,andrainfalloccurinthe mountains,butweatheratlowaltitudesisgenerallymild,withlittlevariationyearͲround.Mostofthe state'spopulationlivesonOahu.OnalltheHawaiianislands,residentsareclusteredinthecoastalareas. Hawaii'sgeographicisolationmakesitsenergyinfrastructureuniqueamongthestates.Inrecentyears, morethanoneͲtenthofthestate'sgrossdomesticproducthasbeenspentonenergy,mostofthatfor importedcrudeoilandpetroleumproducts.MorethanfourͲfifthsofHawaii'senergycomesfrom petroleum,makingitthemostpetroleumͲdependentstateinthenation.ThestateofHawaiiandthe U.S.DepartmentofEnergyenteredapartnershipin2008calledtheHawaiiCleanEnergyInitiative (HCEI),aimedatreducingthestate'sdependenceonpetroleumandoptimizinguseofsustainablelocal energysources.In2015,Hawaiibecamethefirststatetosetagoalofobtaining100%ofitselectricity fromsustainablerenewablesources.Thestateplanstoreachthisgoalby2045. Hawaii'slargestindustryistourism.MajoreconomicsectorsalsoincludetheU.S.militaryand agriculture.Transportationaccountsforabouthalfofallenergyconsumed.Overall,Hawaii'seconomyis notenergyintensiveandpercapitaenergyconsumptionisamongthelowestinthenation.

RENEWABLEENERGYINTEGRATIONFORISLANDS||STUDYTOUR:HONOLULU&KONA||MAY23Ͳ27,2016||9 Electricity PetroleumͲfiredpowerplantshavesuppliedmorethanthreeͲfourthsofHawaii'snetelectricity generationinthepast20years.In2014,forthefirsttime,netgenerationfrompetroleumslippedbelow 70%,andrenewablesources—mainlywind,biomass,andgeothermalgenerators—supplied13%ofthe state'selectricityfromutilityͲscalegenerators.Coalsuppliedmostoftheremainingelectricity.Useof smallͲscaledistributedrenewables,likerooftopsolarpanels,hasincreased,andifnetgenerationfrom distributedsourcesisincluded,Hawaiigeneratedmorethan21%ofitselectricityfromrenewable sourcesin2014. Hawaii'sdependenceonpetroleumanditsisolatedislandgridsresultinthehighestelectricitypricesin thenation. Hawaii'selectricutilityisexploringthefeasibilityofconvertingsomeorallofitspetroleumͲfired generatingunitstoLNG,bothtoreducecostsandtocomplywithtighteningfederalemissions standards.Hawaii'sislandshavesixseparateelectricitygridsthatarenotconnectedbyunderseaelectric transmissioncables.Eachislandmustgenerateitsownpower.Hawaiiisencouraginginitiativesto interconnecttheislandgridstoenablemoreefficientpowergenerationandtosupportincreased developmentofrenewableenergyresources. Thestate'sheavydependenceonimportedpetroleumandtheisolatedislandgridsresultinHawaii's havingthehighestretailelectricitypricesofanystateinthenation.Hawaii'selectricitydemandis amongthelowestinthenation,bothintotalamountconsumedandinpercapitaconsumption.About3 in10householdsinHawaiiuseelectricityastheirprimaryenergysourceforhomeheating,but,withthe mildtropicalclimate,heatingisrarelyneeded,andnearlytwoͲthirdsofhouseholdshavenoheating systematall. Renewable Energy Hawaiiisthefirststatetosetagoalofproducingallitselectricityfromrenewablesources. Hawaii'srenewableportfoliostandard(RPS),asamendedbythelegislaturein2009,requires40%of electricitytobegeneratedbyrenewablesourcesby2030.InJune2015,thelegislatureextendedthe RPSto2045andrequired100%ofelectricitytocomefromrenewableresourcesbythatyear,making Hawaiithefirststateinthenationtosetatargetof100%renewableelectricity.Stateregulatorsalsoset separateenergyefficiencyportfoliostandards,whichareaimedatreducinganticipatedelectricity consumption30%by2030.Theoverallstategoalis70%cleanenergy,countingbothrenewablesources andefficiency,by2030,and100%cleanenergyby2045.TechnologiesrecognizedintheRPSinclude: wind;solarthermalandphotovoltaic(PV);geothermal;biogas,includinglandfillmethane;biomass, includingmunicipalsolidwastes;hydroelectricity;seawaterͲchilledairconditioning;andwave,tidal,and oceanenergy. Hawaiihassubstantialrenewableresourcesthroughouttheislandchain.UtilityͲscalewindpotentialis foundbothonshoreandoffshore.Thestate'ssixcommercialwindfarmsareonOahu,Maui,andtheBig IslandofHawaii.Smallerwindprojectspowerawatertreatmentplantandanirrigationsystemonthe BigIsland.A400MWwindprojecthasbeenproposedforfederalwatersoffOahu. Hawaiihassignificantsolarresourcesandisgeneratingincreasingamountsofelectricityfrom distributedsolarPVinstallationsonalltheinhabitedislands.Hawaii'scapital,Honolulu,hasmoresolar capacityinstalledpercapitathananyotherU.S.city,andthestateisaleaderinsolarinstallationsper capita.Attheendof2014,Hawaiihad381MWofsmallͲscalesolarcapacityinstalledonmorethan 51,000residentialandcommercialpropertiesand33MWinstalledatnineutilityͲscalefacilitieson

10||THEWORLDBANKCLEANENERGYGLOBALSOLUTIONSGROUP&THEENERGYSECTORMANAGEMENTASSISTANCEPROGRAM Oahu,Kauai,andLanai.Solarpowerprovided29%ofHawaii'srenewableelectricitygeneration.Hawaii hasusednetmeteringandtaxincentivestoencourageinstallationofmoredistributedsolarfacilities, andstateregulatorsandgridoperatorsarebalancingincreasingnumbersofsolarconnectionrequests withgridstabilityrequirements. Withtheislands'smallgrids,somelargerprojectsusingvariablewindandsolartechnologiesare incorporatingenergystorageorcontinuousvoltageregulationtosmoothoutvariability.The6ͲMWPort AllenprojectonKauaiincludesa3ͲMWbatteryenergystoragesystem.Governmentagenciesand privatesectorfirmsaredevelopingenergystoragetechnologies,includingbatteriesandhydrogenfuel cells,tosupportincreasedrenewableenergypenetration.Since2010,statebuildingcodesrequireall waterheatersinnewsingleͲfamilyhomestobesolarpowered.Onesmallsolarthermalpowerplanton theBigIslandclosedin2014.Solarthermaltechnologiesforseawaterdesalinationarealsoin development. Biomass,mainlyagriculturalwastessuchasbagassefromsugarcane,haslongbeenusedinHawaiito generateheatandelectricity.Thestate'sagriculturalsectorisshrinking,andmorebiomassiscoming frommunicipalsolidwaste.TheHͲPOWERplantprovides10%ofOahu'selectricityfrommunicipalsolid wasteandtheplantisbeingexpandedfrom46to73MW.AformercoalͲfiredplantnorthofHiloonthe BigIslandisbeingrefurbishedtorunonlocalplantbiomass,andotherbiomasselectricitygenerators areoperatingorbeingdevelopedonOahu,Kauai,andMaui.Hawaiialsoaimstosubstitutesustainably producedbiofuelsforsomepetroleumͲbasedfuelsatutilitygeneratingplants.The110ͲMWCampbell IndustrialParkGeneratingStation,believedtobetheworld'slargestcommercialelectricitygenerator fueledexclusivelywithsustainablebiofuel,wasbroughtintoserviceonOahuin2010.TheHCEIsays moreuseofbiomassandbiofuelscanalsohelpboostthestate'sagriculturalsector. In2014,HawaiiwasoneofsevenstateswithoperatingcommercialͲscalegeothermalpowerproduction. ItssinglegeothermalgeneratingplantislocatedontheKilaueaVolcanoontheBigIslandandsupplied aboutoneͲfourthoftheisland'selectricityin2014.Stateutilitiesareseekingmoreprojectstotapthe earth'sheatontheBigIsland,Maui,andOahu. Hawaiidoesnothaveriversappropriateforhydroelectricdams.Ahandfulofsmallhydroelectric turbinesuserunͲofͲriverflowatsitesonMauiandtheBigIsland,andstudieshaveidentifiednearly50 sitesforadditionalsmallͲscaleprojects.Kauai'selectriccooperativeisexploringraisingtheisland's hydropowergenerationfrom8–20%ofconsumption.Thestateisalsolookingtothesurrounding oceanforrenewableenergy.TheU.S.Navyhasbeentestingwaveenergytechnologiestosupplypower toitsislandbases.StudiesindicatewaveenergycouldprovideanywherefromaboutoneͲthirdtoallof theelectricityHawaiiansuse,dependingontechnologicaladvances.Oceanthermalenergytechnology, whichgenerateselectricitythroughtemperaturedifferencesbetweenwarm,shallowwatersandcool, deepwaters,isbeingexplored.Districtcooling,drawingupcolddeepseawatertochillairͲconditioning units,isbeingcommerciallydevelopedinHonolulu.

RENEWABLEENERGYINTEGRATIONFORISLANDS||STUDYTOUR:HONOLULU&KONA||MAY23Ͳ27,2016||11 HONOLULU, OAHU

Honolulu,ontheislandofOahu,isthecapitalandlargestcityofthestateofHawaii.Itisthecenterof government,transportation,andcommerceforthestate;hometoapopulationofnearly1million peopleinthemetroarea(80%ofthestate'spopulation)andHawaii'sbestknowntouristdestination, WaikikiBeach.In2015,HonoluluwasrankedasoneofthesafestcitiesintheUnitedStates. IncentralHonolulu,thetwomainstreetsareKingStreetandBeretaniaStreet.Thetwostreetsareone wayformostoftheirroute;KingStreetrunsfrom'EwatoDiamondHead,andBeretaniaStreetfrom DiamondHeadto'Ewa.BothstreetsrunparallelthroughdowntownHonolulu. STUDY TOUR VISITS The Hawaii Public Utilities Commission TheStateofHawaiiPublicUtilitiesCommission(PUC)regulatesallfranchisedorcertificatedpublic servicecompaniesoperatingintheState;prescribesrates,tariffs,charges,andfees;determinesthe allowablerateofearningsinestablishingrates;issuesguidelinesconcerningthegeneralmanagementof franchisedorcertificatedutilitybusinesses;andactsonrequestsfortheacquisition,sale,disposition,or otherexchangeofutilityproperties,includingmergersandconsolidations. TheCommissionregulatesfourelectricutilitycompaniesorentitiesengagedintheproduction, purchase,transmission,distribution,andsaleofelectricenergyintheState:HawaiianElectricCompany (HECO),servingtheislandofOahu;MauiElectricCompany(MECO),servingtheislandsofMaui,Lanai, andMolokai;HawaiiElectricLightCompany(HELCO),servingtheislandofHawaii(collectively,theHECO Companies);andKauaiIslandUtilityCooperative(KIUC),servingtheislandofKauai.MECOandHELCO arewhollyownedsubsidiariesofHECO,whichis,inturn,awhollyownedsubsidiaryofHawaiianElectric Industries,Inc. Hawaii Electric Company HawaiianElectricCompanyanditssubsidiariesprovideelectricityandservicesto95percentofthe State's1.4millionresidents.ThecompanyisalsooneoftheState'sleadingemployersandamajor contributorandsupporterofcommunityandeducationalprograms.

12||THEWORLDBANKCLEANENERGYGLOBALSOLUTIONSGROUP&THEENERGYSECTORMANAGEMENTASSISTANCEPROGRAM ThedemandforpowerthathasfueledthegrowthoftheHawaiianIslandshasbeenmetbyHawaiian Electricforwelloveracentury.Andasthenextmillenniumunfolds,thecompanyiscommittedto providingqualityserviceandseekingcleanlocalenergysourcestopowergenerationsofHawaiian familiesandbusinessestocome. x FirstWind's30ͲMWwindfarminKahukuwentintooperationinearly2011. x HawaiianElectricandMauiElectricCompanyarehonoredforSolarEnergyAdoptionbythe SolarElectricPowerAssociationin2012. x In2012,criticalinvestmentstoupgradeandmodernizeelectricalsystemsincludereplacing 210,000feetofundergroundpowercableonOahu(upfrom97,000in2011),1300utilitypoles (1,000in2011),and24transmissionstructures(1in2011). x Comparedto2008,whennewcleanenergytargetswerefirstset,500,000barrelsofoilhave beeneliminatedfromannualuse,theequivalentof$69millionin2012. x In2012,GoingSolar,onlinesolarresourcecenter,waslaunchedtoprovidecustomers informationonchoosingacontractor,financing,siting,andsizingphotovoltaicandmore. x Alsoin2012,aphotovoltaicsystemwasaddedtothe120ͲMWbiofueledgenerationstationat CampbellIndustrialParktohelppowerthefacilityandruntwoelectricvehiclechargers. x AstheportfolioofrenewableenergycontinuestogrowandHawaiiresidentsuseelectricity moreefficiently,lessoilisusedand,indoingso,strengtheningHawaii'seconomyandenergy securitywhilehelpingtoprotecttheenvironmentofHawai’I’sislandsandtheworld. The Hawaii Natural Energy Institute HawaiiNaturalEnergyInstitute(HNEI)conductsessentialenergyresearchrelevanttoHawaiiandthe world.Programsfocusonidentifyingtechnicallysound,costeffectivesolutionsandpracticalstrategies thatcanbeimplementedtodelivercommerciallyviablerenewableenergy.Theultimategoalisto achieveastableandcostͲeffectiveenergymixforHawaii,whilereducingtheState’sdependenceonoil andotherfossilfuelresources. TheGridSTARTprogramempowersislandedgridsandremotecommunitiestooptimizepowersystems andreliablyintegrategreaterlevelsofrenewables.Itfocusesonresearch,development,test,and evaluation(RDT&E)ofadvancedgridcontrolarchitectures,enablingpolicies,andnewtechnologiesand methodsforeffectiveintegrationofrenewableenergyresourcesandpowersystemoptimization(e.g., demonstrationprojectofasmartgridsystemonaportionoftheMauiElectricCompanyelectricgridat WaileaonMaui).HNEIisalsoactiveinthefieldsofalternativefuels,renewableenergy,energystorage, energyefficiency,andtransport. DBEDT - Hawaii State Energy Office TheHawaiiStateEnergyOfficeisleadingthestate’schargetowardcleanenergyindependence.Witha goaltoachieve100%renewableenergygenerationby2045,theHawaiiStateEnergyOfficeis committedtodevelopinganddeployinghighimpactsolutionsthatwillmaximizeHawaii’srenewable energyresourcesandimproveefficiencyandtransportationstandards.Througheffectivepoliciesand innovativeprograms,theHawaiiStateEnergyOfficehaspositionedHawaiiasaprovinggroundforclean energyinnovation,whichwillgeneratequalityjobs,attractinvestmentopportunities,andaccelerate economicgrowth.

RENEWABLEENERGYINTEGRATIONFORISLANDS||STUDYTOUR:HONOLULU&KONA||MAY23Ͳ27,2016||13 The Clean Energy Solutions Center TheCleanEnergySolutionsCenteroffersnoͲcostexpertpolicyassistance,webinarsandtrainingforums, cleanenergypolicyreports,data,andtoolsprovidedinpartnershipwithmorethan35leading internationalandregionalcleanenergyorganizations. The“AskanExpert”serviceprovidesnoͲcostcleanenergypolicyassistancethroughaglobalnetworkof over30expertsforgovernmentagencyrepresentativesandthetechnicalinstitutesassistingthem.To date,thisservicehassupportedmorethan120requestsforassistancefromover60countries.TheAsk anExpertservicemakesiteasytorequesttargeted,firstͲrateexpertassistanceandreceiveinͲdepth answersandsupportforyourpolicyquestions. Webinarsaredesignedincollaborationwithglobalpartnerinstitutions,andengagediverseglobal audiencesininteractivediscussionsonimportantcleanenergypolicytopicscoveringenergyefficiency, renewableenergy,energyaccess,andtransportissues.EͲlearningcourses,podcastsandvideosarealso offered. TheSolutionsCenterfeaturesanextensivecollectionofalmost3,000cleanenergyresources,including reportsonbestͲpracticepolicies,data,andanalysistoolsforthebenefitofpolicymakers.Aspartofthis resourcelibrary,theSolutionsCentercollaborateswithBloombergNewEnergyFinancetoprovide biannualnewsletterssummarizingglobalcleanenergyinvestmenttrends. SolarCity HQ in Hawaii SolarCityisAmerica'slargestsolarpowerprovidermakingcleanenergyavailabletohomeowners, businesses,schools,nonͲprofits,andgovernmentorganizationsatalowercostthantheypayforenergy generatedbyburningfossilfuelslikecoal,oil,andnaturalgas.SolarCity'scustomersincludetensof thousandsofhomeowners,morethan400schools(incl.StanfordUniversity),governmentagencies(i.e., U.S.ArmedForces,DepartmentofHomelandSecurity),andwellͲknowncorporateclients(incl.eBay,HP, Intel,Walgreens,andWalmart). In2016,KIUCwilldevelopa17ͲMWsolarPVpowerplanttobebuiltbySolarCity.Thepackagewillcome witha52ͲMWhbatteryenergystoragesystem.KIUChassignedaprivatepurchaseagreementwith SolarCitytobuypowerfromtheprojectfor20years.The52ͲMWhbatterysystemwillfeedupto13 MWofelectricityontothegridtoreducetheeveningpeak,whichlastsfrom5:00pmto10:00pm. City and County of Honolulu - H-Power TheHonoluluProgramofWasteandEnergyRecovery(HͲPOWER)isaoneͲofͲaͲkindpowerplantin CampbellIndustrialParkonOahu,turningmunicipalsolidwastetopower.Itistheonlyoperatingplant intheUnitedStatesthatcombinesthebestofrefuseͲderivedfuel(RDF)technologyandmassburn (MBN)technology,allowingtheplanttomanagemoretypesofwastefortheCityandCountyof Honolulu(City).Theoriginalfacilitybeganoperationsin1990andconsistsoftwo100Ͳtphwaste processingtrains(thedailyprocessingcapacity=2,160tpdinasingleshift). HͲPOWER,ownedbytheCity&CountyofHonoluluandoperatedbyCovanta,expandedbyaddinga thirdboilerandotherequipmentin2012,whichshouldbringitscapacitytoabout73MW.

14||THEWORLDBANKCLEANENERGYGLOBALSOLUTIONSGROUP&THEENERGYSECTORMANAGEMENTASSISTANCEPROGRAM KONA, BIG ISLAND

KailuaKona,oftenreferredtoas"Kona"bythelocals,isthemainwesterncity,population34,000 (2012),oftheBigIslandofHawaii.ItisnestledonthewesterncoastoftheHualalaiVolcano.Because themountainsblockthenortheasterlytradewinds,Konagetsverylittlerainandenjoysmorethan300 daysofsunshineayear. STUDY TOUR VISITS Natural Energy Laboratory of Hawaii (NELHA) Hawaii’sinnovativeeconomicdevelopmentparkplaysasignificantroleinHawaii’sgrowthinocean energytechnologiesandsustainabledevelopment.HawaiiOceanScience&Technology(HOST)Park’s appliedenergyzonehousesenterprisesthattestrenewableenergytechnologiesonthecuspof commercialization.Activitiesattheparkfulfillstatewideprioritiesandcomplementthevisitorindustry inWestHawaii.NELHA’smissionistodevelopanddiversifytheHawaiieconomybyprovidingresources andfacilitiesforenergyandoceanͲrelatedresearch,education,andcommercialactivitiesinan environmentallysoundandculturallysensitivemanner. x HOSTPark’senergyportfolioconsistsofOTECandamicroalgaebiofuelsdemonstrationplant, solarPVandCSPtechnologies,seaͲwaterairͲconditioningsystem,andanenergystoragefacility foraminiͲgridarelocatedinthePark. x OCEANTHERMALENERGYCONVERSION(OTEC).HOSTParkhasestablisheditselfasaleading testfacilityforOTECtechnologysince1974.Closedandopencyclesystems,aswellasonshore andoffshoresystems,whichaimtoproduceelectricityusingthetemperaturedifference betweencooldeepandwarmshallowseawater,havebeenbuiltandtestedbyvariousgroups. x CONCENTRATEDSOLARPOWER(CSP)concentratessolarthermalenergyintoasmallareato heataworkingfluid,which then,inturn,candriveaheatenginetoproducepower.HOSTPark’s highinsolationandwarmyearͲroundclimatemakeitanidealsiteforthedemonstrationofnew CSPtechnology.KeaholeSolarPowerestablisheditsfirstpilotplantatHOSTParkin2007to demonstratenovelconcentratingsolarpanelsthatcouldwithstandstormsandthermalenergy storagesystems. x PHOTOVOLTAICS(PV).VarioussolarcompanieshavetakenadvantageofHOSTPark’sprime locationandtestedinnovativePVsystems.Concentratingphotovoltaicpioneer,Solfocus examinedtheeffectofmarineenvironmentsontheirCPVsystems.HOSTParkisthesiteofa

RENEWABLEENERGYINTEGRATIONFORISLANDS||STUDYTOUR:HONOLULU&KONA||MAY23Ͳ27,2016||15 newsolartestbedfundedbytheNationalRenewableEnergyLaboratory(NREL).Thetestbed willallowtocomparevarioussolarmodules’powergeneration,energystoragesystemsand theirincorporationintoarealworldelectricalgridwithstateoftheartpowermonitors.Many HOSTParkclientstakeadvantageoftheidealinsolationandcloseto1.5MWofcommercialPV iseitherinstalledorwillbeoperationalintheverynearfuture. x BIOFUELS.HOSTParkisoneofthebestplacesintheworldtogrowmicroalgaeand consequentlyishometoleadersinthefieldofmicroalgaeproductionandbiofuelsR&D.Over US$100millionhasbeeninvestedinCellanaLLC‘s6Ͳacrestateoftheartdemonstrationplantat HOSTPark. x SEAWATERAIRCONDITIONING(SWAC)usescold,deepseawatertocoolbuildings.In general,theseawaterispassedthroughaheatexchangerandtheresultingcooledairis deliveredtothebuildings.TheveryfirstrealͲworldSWACsystemwasdevelopedatHOSTPark. ButthetechnologyisnowusedthroughouttheworldincludingSweden,Netherlands,Canada, andNewYork.AllofNELHA’sadministrativebuildingsarecooledbyseawater.ManyofNELHA’s clientsalsotakeadvantageofthesignificantsavingsprovidedbyaSWACsystemandhave installedtheirown. Blue Planet Foundation Ranch TheBluePlanetFoundationisanonͲprofitorganizationcreatedtochangeourworld'senergyculture,to raiseglobalawarenessinordertodevelopandadoptpracticalprogramstoimplementclean,efficient, andrenewableenergyandtocreateaglobalresponsetoclimateissues. OnthePu’uWa’awa’aRanchontheBigIsland,BluePlanetFoundationisexperimentingwithanumber oftechnologiesforproducingandstoringenergy.TheyaretestingsevendifferentsolarPVtechnologies, aswellasvariousenergystorageandfuelcelltechnologies.Theroofoverthelabishostto360solarPV panelswithacapacityof85kW—enoughtopowerabout17averagehomesinHawaii–whilealso usingtheelectricityfromthesolarpanelstoproducehydrogen,whichthensuppliestheonlyhydrogen refuelingstationontheBigIsland. Puna Geothermal Venture (PGV) LocatedinthePunadistrictontheBigIslandinHawaii,PunaGeothermalVenture(PGV)istheonly geothermalpowerplantinthestate.PGViscomprisedoftwoairͲcooledpowerplants,acombinedcycle systemandabinarysystemwithatotaloriginalgeneratingcapacityof30MW.PGVhasimprovedthe plantbyaddingcapacityof8MWbyutilizingtheheatcontainedinthehotwaterthatiscurrentlyreͲ injected.Thefacilityincludesseveralfeaturesthatmakeitenvironmentallyfriendlyincluding:noise reductionenclosuresalowͲprofile,smallͲfootprintdesign;nearͲzeroemissions;100%geothermalfluid reinjection;and,continualmonitoringmeasures.ThePGVpowerplantsellsitselectricaloutputto HawaiiElectricLightCompanyunderthreelongͲtermpowerpurchaseagreements. PGVcommencedcommercialoperationin1993.ItwasacquiredbyOrmatTechnologies,Inc.inJune 2004.Ormatistheonlyverticallyintegratedcompanyprimarilyengagedinthegeothermaland recoveredenergypowerbusiness.TheCompanydesigns,develops,ownsandoperatesgeothermaland recoveredenergyͲbasedpowerplantsaroundtheworld.Additionally,theCompanydesigns, manufactures,andsellsgeothermalandrecoveredenergypowerunitsandotherpowerͲgenerating equipment,andprovidesrelatedservices.TheCompanyhasmorethanfourdecadesofexperiencein thedevelopmentofenvironmentallysoundpower,primarilyingeothermalandrecoveredͲenergy generation.Ormatproductsandsystemsarecoveredby75U.S.patents.Ormathasengineeredand builtpowerplantsthatitcurrentlyownsorhassuppliedtoutilitiesanddevelopersworldwide,totaling approximately1,300MWofgrosscapacity.

16||THEWORLDBANKCLEANENERGYGLOBALSOLUTIONSGROUP&THEENERGYSECTORMANAGEMENTASSISTANCEPROGRAM LIST OF PARTICIPANTS (BY COUNTRY)

NAME TITLE ORGANIZATION COUNTRY DevonGardner ProgramManager,Energy CARICOM Regional FitzroyVidal PrincipalDirectorforEnergy MinistryofScienceEnergy&Technology Jamaica KireuaBureimoa HeadEnergyPlanningUnit MinistryofPublicWorksandUtilities Kiribati TenikoriaKataua ActingPowerEngineeringManager PublicUtilitiesBoard Kiribati AhmedSaif SeniorEngineer StateElectricityCompanyLtd(STELCO) Maldives AkramWaheed ProjectCoordinator MinistryofEnvironmentandEnergy Maldives Dr.JawaharlallLallchand Chairman NationalOceanCouncil Mauritius Dr.ArjoonSuddhoo Chairman NationalResearchCouncil Mauritius SylvesterClauzel PermanentSecretary MinistryofSustainableDevelopment,Energy,Science&Technology SaintLucia BarrymoreFelicien ChiefUtilitiesOfficerandHeadofEnergyUnit MinistryofSustainableDevelopment,Energy,Science&Technology SaintLucia BethiaThomas ScienceandTechnologyOfficer MinistryofSustainableDevelopment,Energy,Science&Technology SaintLucia SallyaneCotter LegalOfficer MinistryofSustainableDevelopment,Energy,Science&Technology SaintLucia BeniseJoseph EnergyOfficer MinistryofSustainableDevelopment,Energy,Science&Technology SaintLucia CharlinBodley EnergyOfficer MinistryofSustainableDevelopment,Energy,Science&Technology SaintLucia AloysiusBarthelmy GeothermalTechnicalCoordinator MinistryofSustainableDevelopment,Energy,Science&Technology SaintLucia MartinSam ChiefEngineer SolomonIslandsElectricityAuthority SolomonIslands Dr.BMSBatagoda Secretary MinistryofPowerandRenewableEnergy SriLanka Dr.AjithP.Perera DeputyMinister MinistryofPowerandRenewableEnergy SriLanka MafaluLotolua ManagingDirector TuvaluElectricityCorporation Tuvalu LeithVeremaito ProgramManager VanuatuRuralElectrificationProgram Vanuatu ChristopherSimelum ActingDirector DepartmentofEnergy Vanuatu KaranCapoor SeniorEnergySpecialist WorldBank SilviaMartinezRomero SeniorEnergySpecialist WorldBank MartinSchroeder JPO WorldBank GunjanGautam Consultant WorldBank HeatherAustin Communications WorldBank

RENEWABLEENERGYINTEGRATIONFORISLANDS||STUDYTOUR:HONOLULU&KONA||MAY23Ͳ27,2016||17 TOUR AT A GLANCE

DAYS 1 – 3 || Honolulu on Oahu TIME VENUE LOCATION Monday Welcome LobbyofAstonattheExecutiveCentreHotel 23May 1088BishopStreet Honolulu,HI96813 HawaiiPublicUtilities 465SouthKingStreet,#103 Commission Honolulu,HI96813 HawaiiElectricCompany ASBTower 1001BishopSt. 8thFloorConferenceRoom Honolulu,HI96813 Tuesday HawaiiNaturalEnergyInstitute 1680EastͲWestRd 24May Honolulu,HI96822 DBEDTͲHawaiiStateEnergy DepartmentofBusiness,EconomicDevelopment&Tourism Office HawaiiStateEnergyOffice Honolulu,HI96804 CleanEnergySolutionsCentre DepartmentofBusiness,EconomicDevelopment&Tourism HawaiiStateEnergyOffice Honolulu,HI96804 Wednesday SolarCityHQinHawaii SolarCityHQ 25May 599KaheluAvenue,Mililani,HI96789 HͲPower(Covanta) CampbellIndustrialPark 91Ͳ174HanuaStreet,Kapolei,HI96707

DAYS 4 – 5 || Kona on Big Island

TIME VENUE LOCATION Thursday MorningFlighttoKona 26May NaturalEnergyLaboratoryof HawaiiOceanScience&Technology(HOST)Park Hawaii(NELHA) 73Ͳ987MakakoBayDrive KailuaKona,HI96740 BluePlanetFoundationRanch Pu'uWa'awa'aRanch KailuaͲKona,HI96740 Friday PunaGeothermalVenture 14Ͳ3860PohoikiRoad 27May PĈhoa,HI96778 Optional:Hawai॒iVolcanoes Hawai॒iVolcanoesNaƟonalPark NationalPark 1CraterRimDrive,Volcano,HI96785 ReflectionsonLessonsLearned MarriottCourtyardKingKamehameha 75Ͳ5660PalaniRoad,KailuaͲKona,HI96740