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Energy Case Study.Indd Energy Sustainability in the Pacific Basin: Case History of the State of Hawai‘i and the Island of O‘ahu as an Example Michael W. Guidry and Fred T. Mackenzie School of Ocean & Earth Science & Technology Department of Oceanography University of Hawai‘i at Mänoa Honolulu, HI 96822 Energy Sustainability in the Pacific Basin: Case History of the State of Hawai‘i and the Island of O‘ahu as an Example Michael W. Guidry and Fred T. Mackenzie School of Ocean & Earth Science & Technology Department of Oceanography University of Hawai‘i at Mänoa Honolulu, HI 96822 Publication of this manual was funded in part by a grant/ cooperative agreement from NOAA, Project E/ET-49, which is sponsored by the University of Hawai‘i Sea Grant College Program, School of Ocean and Earth Science and Technology (SOEST), under Institutional Grant Number NA09OAR4171048 from the NOAA Office of Sea Grant, Department of Commerce. The views expressed herein are those of the authors and do not necessarily reflect the views of NOAA or any of its sub-agencies. UNIHI-SEAGRANT- BB-09-01 TABLE OF CONTENTS Preface: Energy and Small Pacific Island States IPAT Equation Importance of Energy to Small Pacific Island States Future Energy Concerns for Small Pacific Island States Case Study Overview Figures Tables Appendices Terms and Acronyms I. Introduction – Overview of Human Population History, Resource and Energy Usage 18 A. Human History and Resource Use 18 B. Population Growth 20 C. Energy Resources and Use 21 1. Energy Resources 22 2. Nonrenewable Resources 22 a. Fossil Fuels 23 b. Nuclear Energy 26 3. Renewable Resources 26 a. Solar Power 26 b. Geothermal and Wind 27 c. Hydropower 27 d. Biofuels 27 D. Conclusions 28 II. Hawai‘i – Population, Energy, Economy, and Environment 29 A. Population History 29 B. The Need for Energy 30 C. Energy and Hawai‘i’s Economy – Renewables, Efficiency, and Risks 30 D. The Links Between Hawai‘i’s Energy Use, the Economy, and the Environment 31 1. Energy Use and Air and Water Quality 31 2. Energy Use, Greenhouse Gas Emissions, and Climate Change 31 3. Climate Change and Hawai‘i 32 E. Meeting Hawai‘i’s Energy Needs 32 1. Hawai‘i’s Energy Requirements 32 2. Crude Oil and Refined Product Imports 34 1 3. Oil Products Refined in Hawai‘i 35 4. Synthetic Natural Gas Production 35 5. Coal Supply 35 6. Hawai‘i’s Renewable Energy Sources 36 F. Balancing Energy Needs, Economic Growth, and Environmental Protection to Create a Sustainable Energy System 36 G. Conclusions 36 III. Sustainability Indicators for Hawai‘i’s Energy System 37 A. Uses of the Energy Indicators for Sustainable Development 37 B. The Energy Indicators for Sustainable Development 38 1. The Social Energy Indicators for Sustainable Development 39 2. The Economic Energy Indicators for Sustainable Development 39 3. The Environmental Energy Indicators for Sustainable Development 39 C. Conclusions 40 1. Indicators of Major Concern 41 a. ENV1 Greenhouse Gas Emissions from Energy Use 41 b. ENV4 Contaminant Discharges from Liquid Effluents from Energy Systems Including Oil Discharges 41 c. ECO11 Fuel Shares in Energy and Electricity 41 d. ECO13 Renewable Energy Shares in Energy and Electricity 41 e. ECO14 End-Use Energy Prices by Fuel and by Sector 41 f. ECO14 Net Energy Import Dependency 41 2. Indicators of Concern 42 a. SOC2 Share of Household Income Spent on Fuel and Electricity 42 b. SOC4 Fatal Accidents Produced in Energy Fuel Chain 42 c. ECO3 Efficiency of Conversion and Distribution 42 d. ENV2 Ambient Concentrations of Air Pollutants in Urban Areas and ENV3 Air Pollution Emissions from Energy Systems 42 3. General Course of Action to Reduce Major Concerns and to Enhance Hawai‘i’s Energy Sustainability 42 IV. Electricity for Hawai‘i 43 A. Introduction 43 B. Hawai‘i’s Electric Utilities: Current Status and Challenges for the Future 44 C. The Hawai‘i Electric Company (HECO) 44 1. The Current HECO System 44 2. HECO's Market 45 D. The Hawai‘i Electric Light Company (HELCO) 46 1. The Current HELCO System 46 2 E. Kaua‘i Island Utility Cooperative (KIUC) 47 F. Maui Electric Company (MECO) 48 1. The Current MECO System 48 a. Maui Division 48 b. Läna‘i Division 49 c. Moloka‘i Division 49 2. Electricity Generation for MECO Customers 49 3. The MECO Market Portfolio 49 G. Utility Integrated Resource Plans (IRP) for the Future 50 H. Conclusions 50 V. Improving End-Use Efficiency in Hawai‘i’s Electricity Sector 51 A. Introduction 51 B. Hawai‘i and Energy Efficiency 52 C. Government Energy Policies 54 1. Energy Codes – The Hawai‘i Model Energy Code 54 2. Renewable Energy Portfolio Standard (RPS) 55 3. Facilitating Energy Efficiency in State Government 55 4. Performance Contracting 56 5. National Energy Policy 57 6. Federal Policy Initiatives Directed by the Energy Policy Act of 2005 58 D. Tax and Other Governmental Financial Incentives 58 E. Utility Demand-Side Management (DSM) Programs to Enhance Efficient Use of Electricity 59 1. HECO's Current Residential DSMPrograms 60 2. HECO's Proposed New Residential DSM Programs 60 3. HECO's Current Commercial and Industrial DSM Programs 61 4. Historical and Projected Results of the HECO DSM Programs 62 F. Programs Providing Information and Tools 63 1. Hawai‘i BuiltGreen™ Program 63 2. Guides for Energy Efficiency in Hawai‘i Homes 64 3. The Field Guide for Energy Performance, Comfort, and Value in Hawai‘i Homes 64 4. Hawai‘i Commercial Building Guidelines for Energy Efficiency 64 5. Energy Analysis Tools 64 6. Hawai‘i High-Performance Schools Guidelines 65 7. Energy Efficiency Information on State of Hawai‘i Department of Business, Economic Development, and Tourism Strategic Industries Division (formerly Energy, Resources, and Technology Division) Web Site 65 a. Air Conditioning 65 b. Architectural Design 65 3 c. Cooking 65 d. Laundry 66 e. Lighting 66 f. Performance Contracting 67 g. Refrigerators 67 h. Water Heating 67 8. U.S. Department of Energy's Federal Energy Management Program (FEMP) 67 9. Federal Information Programs Authorized by the Energy Policy Act of 2005 68 G. Appliance and Equipment Standards 68 1. Energy Star Program 68 2. Federal Equipment Efficiency Standards 69 3. Energy Efficiency Resource Standards 69 H. Voluntary Programs – The Rebuild Hawai‘i Consortium 69 I. Additional Energy Efficiency Programs for Consideration 69 J. Future Technologies to Enhance Efficiency and Sustainability 70 K. Conclusions 70 VI. Renewable Energy for Hawai‘i 71 A. Introduction 71 B. Renewable Energy and State of Hawai‘i Energy Objectives and Policies 72 1. The Status of Renewable Energy Generation in Hawai‘i, 2004 72 2. Challenges for Future Renewable Energy 73 3. Hawai‘i’s Renewable Energy Resources 74 a. Municipal Waste 74 b. Electricity from Landfill Gas and Wastewater Treatment Gas 75 c. Biomass from Sugar on Maui and Kaua‘i 75 d. Biodiesel from Used Cooking Oil on Maui, and O‘ahu 75 e. Geothermal Energy in Hawai‘i 75 f. Hydropower 76 g. Ocean Energy 76 h. Solar - Thermal Energy, Desalination, and Drying 76 i. Photovoltaics 77 j. Wind Energy in Hawai‘i 78 C. Renewable Energy and State of Hawai‘i Energy Objectives and Policies 78 D. State of Hawai‘i Legislation Setting Additional Objectives and Policies Favoring Renewable Energies 79 1. Renewable Energy Portfolio Standard (RPS) 79 2. Net Energy Metering 80 3. Hawai‘i Public Utilities Commission Renewable Resource Docket 80 E. State of Hawai‘i Projects to Provide an Analytical Basis for Renewable Energy Policy and to Assist Potential Developers 81 4 1. Energy Planning 81 2. Renewable Energy Resource Assessments 81 3. High Resolution Wind Maps 82 4. State of Hawai‘i-Sponsored Studies on Renewable Energy 82 F. State of Hawai‘i Efforts to Stimulate the Market for Renewable Energy 83 1. RD&D Activity 83 2. State of Hawai‘i Financial Incentives 84 3. Industry Recruitment Tax Breaks for Qualified Research 84 4. State “Enterprise Zone” Incentives 84 5. Contractor Licensing 85 6. Interconnection 85 7. Solar Access Law 85 G. Federal Programs Supporting Renewable Energy 85 H. Electric Utility Programs Supporting Renewable Energy 85 1. Utility DSM Programs Supporting Renewable Energy 86 a. HECO, MECO, HELCO – Energy Solutions Solar Water Heater Rebate 86 b. Kaua‘i Island Utility Cooperative (KIUC) – Solar Water Heating Program 86 2. Utility Activities to Support Renewable Energy 86 a. Renewable Hawai‘i, Inc. 86 b. Hawai‘i Fuel Cell Test Facility 87 c. Electric Power Research Institute (EPRI) Offshore Wave Energy Project 87 d. Assessment of Biofuels for Use in Utility Generators 87 e. Wind Farm Electronic Shock Absorber 87 f. Intermittent Generation Assessment Protocol 87 g. Natural Energy Laboratory of Hawai‘i Authority Gateway Project 87 h. Hydroelectric Resource Assessment 88 i. In-Line Hydroelectric Generator Project 88 j. Bulk Energy Storage System Evaluation 88 k. Study of Distributed Energy Resources Management as Microgrid 88 l. Kona Base Yard Grid-Connected PV System 88 m. Ocean Wave Energy Demonstration 88 I. Other States' Renewable Energy Policies 89 J. Recommendations to Enhance and Increase Renewable Energy in Hawai‘i 89 1. Hawai‘i Energy Strategy 2000 Recommendations 89 2. Projects Recommended in Selected Hawai‘i Renewable Energy Project Cost and Performance Estimates, 2004 89 3. State Commitment to Assist in Renewable Energy Development 90 K. Conclusions 93 5 VII. Improving the Efficiency of Fossil Fueled Electricity Generation 94 A. Improving the Efficiency of Fossil Fueled Electricity Generation 94 B. Supplying Fossil Fuels 94 1. Natural Gas as an Option for Hawai‘i 94 2. USDOE Research and Development to Improve the Sustainability of Fossil Fuel Use 94 a.
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