Megawatt Mania

Hawaii is closing in on plans for what I’m calling “Megawatt Mania”.

Between a 200 mW RFP for PV, Tier 3 FIT- which is up to 5mW per system, Castle and Cooke’s 20 mW farm in Mililani, Sempra’s planned 300 mW farm at Pearl Harbor, we have quite a show of solar force in the pipeline!

So, what does all of this mean to Hawaii, consumers, the utility and the PUC?

For Hawaii- its the incremental steps towards a renewable energy future. We know intuitively that this is the place to do it. Abundant natural resources and high energy prices creates an equation for it to flourish here, if anywhere, right? Not necessarily.

We have an old and small grid on an island chain in the Pacific. Determining whether or not we can add more non firm distributed generation is open to interpretation and being questioned right now.

Would the consumers be happy?

Short answer is a resounding yes! With PPA’s or FIT structures, being able to have a fixed rate for electricity over time, is a long time coming. Unless you want to buy your own diesel in days of past and run your own generator, this was not an option for the average folks. Now with falling solar module pricing, lenders that are comfy with the economics, the consumer is becoming equally inured into the game plan.

How will the utilities position play out?

Hard to postulate but a few thoughts- their business model is changing rapidly, as the ability to sell kW’s is declining, as self generation is climbing across all sectors- retail, wholesale- commercial, industrial etc.

Will they end up being toll booth operators and manage the transmission and distribution? Yes and no. Yes, this I believe will still be their domain for some time and perhaps retiring some of their old assets will be part of the future.

The PUC has to juggle more non firm energy with ensuring a highly reliable grid. They have their work cut out for themselves.

Finding the storage mechanism will be the holy grail, looking down the oil pipeline of time for this isolated archipelago.

Perhaps we will figure it out first and carry this technology to the rest of the country?

We are moving forward with a clean energy future, the only question will be at what speed.

Aloha,

Keith