Enhance Quality of Life

Improve Employment, Education & Investment Opportunities

Upgrade Infrastructure and Review Our Master Planning Process
:Land Transportation Improvements
:Cost Effective Energy Solultions
:Sustainable Water Availability

EMC Recommendations

Summary of Recommendations

2005 Final Report

 

Cost Effective Energy Solultions

Energy: Hawaii rankings vs. other states

Data Sources:  State of Hawaii-DBEDT; U.S. Energy Information Administration. 2004 Annual Average Unless Otherwise Noted

CATEGORY

HawaiiRank*

Hawaii#s

U.S.#s

Oil Dependency – All Energy  (PPreliminary)

50th

89%

68%

Oil Dependency – Electricity Generation from Oil

50th

76%

2.5%

Electricity Prices (Revenues¢/kWh)

50th

15.7¢

7.6¢

% change in electricity prices, 1990-2004

50th

75%

15%

Gasoline Prices ($/gallon-Regular) 2004

Weekly Average as of 7/15/05

50th

$2.45

$2.62

$1.83

$2.32

Diesel Prices ($/gallon-Highway) 2004

Weekly Average as of 7/15/05

50th

$2.35

$2.92

$1.86

$2.46

Utility Gas – Residential ($/Thousand Cu. Ft.)

50th

$27.15

$10.74

Electricity from Renewable Energy

(Excludes Large Hydroelectric)

3rd

8%

2.5%

Annual Per Capita Electricity Use (kWh)

4th

8,294

12,090

Annual Per Capita Gasoline Use (gallons)

Not available

362.24

473.13

Annual Per Capita Use – All Energy (2003) (million Btu)

Not available

256.57

339.61

*Note:        "Rank" order is in value-based terms of more or less supportive of energy sustainability.

 

CHALLENGE: The availability of a reliable energy source is critical to a health economy and society. However, Hawaii has not and cannot expect to be self-sufficient for energy. Hawaii is presently facing the highest energy costs in the nation, adding to the cost of doing business. In order to meet consistently increasing energy demand, a variety of energy supply sources need to continue to be explored. All energy sources have environmental impacts and difficult choices need to be made. As such, every business and consumer in Hawaii will feel the effects of rising energy costs. Key challenges are summarized below:

  • Oil-dependence for energy supply. Hawaii lacks other dependable fuel sources such as natural gas or hydropower. As a result, Hawaii’s energy supply depends heavily on imported oil. Hawaii’s dependence on oil-based energy is problematic, especially as oil prices rise, and leaves Hawaii vulnerable to the world petroleum marketplace.
    Imported oil is used to produce fuel for transportation - jets, cars and ships (61% in 2001) – and electricity (32%).[1] In addition, because electricity production utilizes residual low sulfur fuel oil that is leftover after gasoline and jet fuel are refined from crude oil, reducing oil dependence for electricity production alone will not necessarily reduce the amount of oil imported.
    Today’s oil market presents a particularly critical challenge for Hawaii. Experts indicate that oil prices have reached a new plateau due to fundamental market and industry changes. Low prices of the past are unlikely to return.
  • Alternate fuels (ethanol and other bio-fuels, such as biodiesel) and renewable energy (Photo Voltaics, solar and wind power).
    Hawaii has generally been progressive in its use of alternate energies. Additional technological developments in energy may make alternate energy sources more cost effective and reliable. As the costs associated with such alternatives drop or the cost of oil-based energy increases, there may be more demand for alternate, renewable energy sources. For example, increased use of ethanol and other bio-fuels, coupled with increased use of hybrid vehicles could reduce dependence on traditional, oil-based fuels for transportation.
  • Energy demand management. While data indicate that energy utilization per capita in Hawaii is among the lowest in the nation, additional work to reduce energy demand can reduce strain on existing energy resources. Energy saving efforts (e.g., motion-activated thermostats, energy efficient cooling systems, solar water heating, utilizing compact fluorescent light bulbs, etc.) can reduce demand for energy.

Integrated planning. Because of the multiple parties involved and interwoven nature of Hawaii’s energy infrastructure, the public and private sectors need to work together to increase the robustness of Hawaii’s energy system through integrated energy planning and development of sustainable energy technologies such as renewable energy, energy efficiency, and advanced energy technologies like hydrogen.



[1] DBEDT, Energy Division.