Role of Energy in Hawaii s Economic Development Asia-Pacific Business Symposium November 10, 2011 Presented by Richard Lim, Director Hawaii State Department of Business, Economic Development & Tourism http://energy.hawaii.gov
Admission to US: 1959 50 th, last state to join the United States Total Land Area: 10,931sq mi 43 rd in Nation About Hawaii Population: 1.3 million 40 th in Nation, 12.3% increase in past decade Median Household Income: $63,741 5 th in Nation Hawaii Is the Only State in the Nation: Not geographically located in North America That grows coffee and tea Has a royal palace 2
Most Isolated Population Center on Earth Russia: 5,312 mi Alaska: 3,022 mi Canada: 3,550 mi China: 5,251 mi Japan: 4,036 mi U.S. Mainland: 2,471 mi Taiwan: 5,285 mi Indonesia: 6,276 mi Papua New Guinea: 4,492 mi Hawaii Mexico: 3,397 mi Costa Rica: 4,822 mi Colombia: 5,551 mi Ecuador: 5,450 mi Fiji: 3,157 mi Australia: 5,205 mi Chile: 6,698 mi New Zealand: 4,613 mi 3
Overview Hawaii s Energy Landscape Hawaii Clean Energy Initiative A Future of Clean Energy Innovation 4
Hawaii s Energy Landscape The State s unique energy situation Vulnerability and opportunity 5
Dependence on Imported Fossil Fuels Over 90% of Hawaii s electricity is generated from imported fossil fuels Over 99% of Hawaii s transportation fuel is fossil based Electric Generation Transportation Hydroelectric Hybrid & 1% Electric Other 1% Renewables 8% Coal Oil 77% Oil 99% 14% 6
High Gasoline Prices State regular gasoline prices are approximately 63 cents higher than US average Regular Gasoline Price ($/Gal) $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 State U.S. $3.59 $2.99 $1.50 $1.00 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 7
High Electricity Prices State electricity prices are currently approximately 20 cents higher than US average Retail Electricity Prices-All Sectors ( /kwh) 35 30 25 20 15 10 5 0 Hawaii US 31.2 9.8 8
Average Electricity Prices 2010 /kwh Hawaii U.S. China Commercial 23.8 10.3 12.0 Industrial 23.8 6.8 11.3 Residential 28.1 11.6 7.0 Average 25.1 9.9 8.4 9
Energy Costs as a Percent of GDP Unpredictable energy costs greatly impact Hawaii s economy 9% 8% 7% 6% 6.8% 7.4% 7.8% 8.0% 5% 4% 4.5% 4.4% 4.2% 4.8% 5.5% 5.2% 3% 2% 1% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 10
Hawaii Renewable Energy Potential (GWh) Kauai Demand RE Potential Oahu Demand Molokai Lanai Maui Hawaii RE Potential Demand RE Potential Demand RE Potential Demand RE Potential Demand RE Potential Biomass Wind Geothermal Hydro Solar MSW Ocean Annual Use, GWh 0 2000 4000 6000 8000 11
Hawaii Clean Energy Initiative Maximizing Hawaii s clean energy potential for economic development and energy security through policies and incentives 12
Progress Compared to Other US States 1 st Solar Water Heaters per Capita 2 nd RPS Levels (%) 2 nd 11.80% 18.75% 17.72% Cumulative Installed PV Capacity per Capita 15.78% 13.83% Power Purchase Agreements per Capita 20.32% 2 nd Energy Savings Performance Contracting per Capita 3 rd Clean Energy Economy Job Growth 2005 2006 2007 2008 2009 2010 13
Solar-Related Construction Expenditures Solar-related construction expenditures reached 15% in 2010 16 14 14.9 Percent 12 10 8 6 4 2 0 6.8 3.5 2.1 2.4 0.6 0.6 2004 2005 2006 2007 2008 2009 2010 14
A Future of Clean Energy Innovation Reaching the next milestones through innovation and research 15
Clean Energy Transformation Commercial Energy Development Local Innovation 16
Various Demonstration Projects Projects Kona Algae Demonstration Facility Maui Smart Grid (NEDO) Ocean Power Technologies Demonstration Island: Hawaii Maui Oahu Technology: Biofuels Smart Grid Wave Potential Generation: Project Status: Demonstration Demonstration Demonstration Active/Ongoing Development Active/Ongoing 17
Partnerships Creating Innovation Utilities in partnership with local innovators Utility Needed: Grid system visualization Historic system performance report generation Additional renewable energy assets integration Referentia Developed: T-REX: Time Series Rapid Exploration for Knowledge Discovery Visualization and decision support tools for renewable energy integration 18
Partnerships Creating Innovation Energy developers in partnership with local innovators General Atomics Needed: Kuehnle Provided: Local algae for Kauai project Dependable algae supply Local algae strains optimized for biofuel development Regular delivery to Kauai 19
Partnerships Creating Innovation General developers in partnership with local innovators Forest City Needed: Reduction in energy use Reduction in energy costs Assistance in managing residents energy use Concentris & Oceanit Developed: e-miser (Meshed Intelligent System for Energy-use Reduction) Remote monitoring and control of energy use with smart phones & laptops 20
Clean Energy Future Hawaii is one of the world s leading clean energy test beds 21
Mahalo Hawaii State Department of Business Economic Development & Tourism http://energy.hawaii.gov