1. Short answer to the first part: No. It is difficult, given current circumstances, to imagine any scenario that would justify new fossil fuel capacity for KIUC. There are numerous opportunities for new, renewable, firm power production facilities and for
1. Short answer to the first part: No. It is difficult, given current circumstances, to imagine any scenario that would justify new fossil fuel capacity for KIUC. There are numerous opportunities for new, renewable, firm power production facilities and for a range of intermittent power sources, including ones that are capable of limited storage, like the solar plant proposed for Kekaha. Several non-fossil fuel generating plants are in various stages of development on Kaua’i.
To the second part of the question, KIUC is already working on the transition, and needs to continue to aggressively seek out renewable energy projects. These must meet our community’s requirements and address our need for clean, reliable power at a reasonable price. For guidance, we have the Hawai’i Clean Energy Initiative and the Hawai’i Renewable Portfolio Standard, as well as the KIUC Strategic Plan. Unfortunately, these programs are not well integrated. The HRPS calls for 20 percent renewables by 2020. The KIUC Strategic Plan calls for 50 percent renewable generation by 2023. HCEI envisions 70 percent by 2030.
We must let the alternative energy community know that they have a committed potential partner on Kaua‘i, and that we are anxious to exceed the timetables established in all three of these programs.
2. Rates are a complex issue, and will be made more complicated with KIUC’s planned installation of smart meters islandwide. But with complexity comes flexibility. Among the many opportunities available with are different rates at different times of the day, which will allow the utility to shift demand away from peak times — reducing the need for new generation capacity. This will also allow consumers to more cost-effectively manage their energy consumption. Feed-in tariffs, which set special rates for renewable energy added the grid, are a powerful tool to encourage private investment. They have not yet been used on Kaua’i, and should be considered.
Subscription programs have been proposed in which low-income families apply for special rate consideration. But these run the risk that those most critically in need will fail to participate or fail to qualify due to communication challenges, high property values or because they are not the listed rate payers. One concept: Identify those families and provide them with extraordinary assistance in conservation and efficiency — and let those measures be a guide for other families seeking more control over their electrical demand.
All that said, the social justice issue has not been adequately addressed at any Hawai’i utility and needs more attention.
3. This is unlikely to become a significant issue. Efficiency measures will take time, and during this period. New economic growth and the developments such as an electric vehicle infrastructure are likely to soak up any reductions in overall power demand from efficiency.
The larger issue of reduced demand may come from the increasing movement of residents and businesses to produce significant amounts their own power.
One part of the problem: If a large segment of the customer base installs solar photovoltaics and still relies on KIUC for power during the evening hours, it could erode our utility’s cash flow while requiring KIUC to maintain an unsustainably large generation capacity to meet evening demand peaks.
Another part of the problem: If many residential consumers and a few very large consumers (read: hotels, PMRF) begin generating their own power, it could indeed depress the utility’s demand and its financial health. KIUC’s pending adoption of advanced metering infrastructure is one approach that should provide the utility with more flexibility in managing its power and customers with fewer incentives to abandon the utility.
