Over the past two years it has become abundantly clear that the energy transition will not be a straight line leading directly to abundant carbon-free energy and a net-zero world. All sorts of obstacles have appeared, indicating that the energy industry’s trilemma of availability, reliability and affordability not only clash with each other, but may also conflict with environmental priorities. The challenge is now felt in Hawaii, where the commitment to expand energy production from renewable sources and reduce the use of fossil fuels while keeping prices under control and reducing pollution is no easy task. In today’s RBN blog, we look at Hawaii’s recent efforts to phase out coal and oil-fired power generation, why it’s been easier said than done, and what it all means for environmental performance and energy prices.
In many ways, Hawaii exemplifies both the ambitions and pitfalls of today’s energy landscape. The stark contrast between the state’s environmental bounty and its energy needs is vividly exemplified at a place called Kahe Point on the west side of Oahu, the most populous of the Hawaiian islands. Nicknamed “Electric Beach” (yellow star in Figure 1), the area’s abundant marine life, including reef fish, sea turtles, eagle rays, and even pods of spinner dolphins, attracts numerous divers and snorkelers, but much of this underwater beauty is a result of warm water flowing from cooling pipes that extend from a nearby fuel oil-fired power plant. So why does a state with such a strong environmental drive perpetuate the plant on the pristine coast?
Let’s start with a look at where things currently stand in the Aloha State, where transitioning away from fossil fuels for power generation has long been a priority for environmental and economic reasons. In many ways, the energy landscape there remains an extreme state. Although Hawaii has the third-lowest per capita energy consumption of any state, according to Energy Information Administration (EIA) data, it uses nearly seven times more energy than it produces, a result of its small size and the lack of resources. (It has no oil, gas or coal reserves. Renewables are responsible for about 15% of utility-scale power generation, with imported oil responsible for almost all the rest.) general electricity needs, which places it 10th Generally in this category, but petroleum products account for about 80% of the state’s total energy consumption (including transportation), which is the highest in the US. And then there’s the bottom line number that resonates with residential consumers, businesses and politicians. equal: Highest electricity prices among the 50 states.
