Energy in Hawaii
Energy in Hawaii is a mixture of fossil fuel and renewable resources. It is complicated by the state's isolated location and lack of fossil fuel resources. The state relies heavily on imports of petroleum and coal for power. Renewable energy production is increasing. Hawaii has the highest share of petroleum use in the United States, with about 62% of electricity coming from oil in 2017. As of 2016, 26.6% of electricity was from renewable sources, including solar, wind, hydro and geothermal. By 2021 Hawaiian Electric (which supplies 95% of electricity through the state) announced that it  had reached 34.5% renewable. Hawaii has the highest electricity prices in the United States. As of 2016 the average cost of electricity was $0.24 per kilowatt-hour, followed by Alaska at $0.19. The U.S. average was $0.10. Consumption. Hawaii's energy consumption is dominated by oil, which in 2016 provided 83% (down from 85.0% in 2008 and 99.7% in 1960). Other sources in 2016 included coal (5.6%) and renewable energy (11.2%). In 2017, sources of renewable power were: Government Support. Legislation. Hawaii allows solar energy facilities to be located on less-productive agricultural lands. HB 3179 made  it easier for biofuel producers to lease state lands. SB 3190 and HB 2168 authorized special purpose revenue bonds to help finance a solar energy facility on Oahu and hydrogen generation and conversion facilities at the Natural Energy Laboratory of Hawaii Authority, located on Hawaii island. In 2010 SB644 mandated solar water heaters for new construction. The bill excluded homes located in areas with poor solar energy resources, homes using other renewable energy sources, and homes employing on-demand gas-fired water heaters. The bill eliminated solar thermal energy tax credits for homes. SB988 allowed the Hawaii Public Utility Commission  to establish a rebate for photovoltaic systems, and HB2550 encouraged net metering for residential and small commercial customers. In 2008 HB 2863 provided streamlined permitting for new renewable energy facilities of at least 200 megawatts capacity. HB 2505 created a full-time renewable energy facilitator to help the state expedite permits. HB 2261 provided loans of up to $1.5 million and up to 85% of the cost of renewable energy projects at farms and aquaculture facilities. HRS 235 established an income tax credit for photovoltaic systems of the lesser of 35% of the cost or $5,0000. Hawaii Clean  Energy Initiative. On January 28, 2008, the State of Hawaii and the US Department of Energy announced the Hawaii Clean Energy Initiative, which intends to develop renewable energy to supply 70 percent or more of Hawaii's energy needs by 2030. The Initiative will work with public and private partners on renewable energy projects including: designing cost-effective approaches for 100 percent use of renewable energy on smaller islands, improve grid stability while incorporating variable generating sources and expanding Hawaii's capability to use locally grown crops for producing fuel and electricity. Partners include United States Department of Energy - EERE , the state of Hawaii, Hawaiian Electric Company, Phoenix Motorcars. Natural Energy Laboratory of Hawaii Authority. The Natural Energy Laboratory of Hawaii Authority is a test site for experimental renewable energy generation methods and pilot plants. Originally built to test Ocean thermal energy conversion (OTEC), it later added research into other sustainable uses of natural energy sources such as aquaculture, biofuel from algae, solar thermal energy, concentrating solar and wind power. Energy use by sector. Transportation. The electric Honolulu Rail Transit network, originally expected to begin operation in late 2020, as of 2019 was scheduled for 2025 at the earliest. Electricity . 95% of the population in Hawaii is supplied by Hawaiian Electric Industries. Kauai is supplied by consumer-owned Kauai Island Utility Cooperative. As of 2018, the total dispatchable capacity is 1,727 MW, and the intermittent generation capacity is 588 MW. Each island generates its own power. Oil. Oil is the primary energy source. Solar power. Solar power in Hawaii grew quickly, putting household energy generation below the cost of purchased electricity. As of 2013, Hawaii was second only to Arizona in per capita solar power. About 10% of Oahu customers had solar panels. Several utility-scale solar farms operated alongside  distributed household generation. In 2017, solar power produced 38.4% of the state's electricity.. Kauai installed batteries to permit renewable energy to be used at night. As of March 2020, 916 MW of solar generating capacity was installed. Wind power. Hawaii has strong, relatively consistent winds. Wind power in Hawaii generated 6.4% of total electricity in 2015. Hawaii began research into wind power in the mid-1980s with a 340 kW turbine on Maui, the 2.3MW Lalamilo Wells wind farm on Oahu and the 9 MW Kamaoa wind farm on Hawaii Island. The MOD-5B, a 3.2 MW wind turbine, on Oahu  was the largest in the world in 1987. These early examples were all out of service by 2010. As of 2017 Hawaii had 114 commercial wind turbines in the state with a total capacity of 206 MW. Biomass. Hawaii has several biomass electric plants including the 10 MW Honolulu International Airport Emergency Power Facility, the 6.7 MW Green Energy Agricultural Biomass-to-Energy Facility on Kauai, and the 6.6 MW waste-to-energy Honua Power Project on Oahu. The 21.5 MW Hu Honua plant has been in litigation for 12 years and is not on line. Life of the Land  won a Hawai`i Supreme Court appeal that remanded the proceeding back to the Public Utilities Commission. Wärtsilä sold Hawaii Electric to be installed at Schofield Barracks Army Base on Oahu in 2017. The plant can run on solid or gas fuels including biomass. Pacific Biodiesel operates a biodiesel production facility on Hawaii Island. It provides fuel to Hawaiian Electric Industries, the City and County of Honolulu and marine company Extended Horizons. Coal. Hawaii has banned new coal plants. One plant operates in the state, AES Hawaii Power Plant, which generates 180 MWe. The plant is expected to close by September  2022. Wave power. The U.S. Navy and the University of Hawaii operate a Wave Energy Test Site in Kaneohe Bay. A pilot wave energy project Azura concluded a six week test in the north shore of Kaneohe Bay, Oahu in 2012. Geothermal. The Puna Geothermal Venture was constructed on the island of Hawaii between 1989 and 1993. It operated until May 2018 when it was shut down due to the 2018 lower Puna eruption, and resumed power generation in November 2020. Algae fuel. Cellana produces oil from algae at a research site at Kailua-Kona on Hawaii island. Microalgae have  significant potential as an energy crop, with the levels of oil production per acre potentially far exceeding that of vegetable oil crops. Cellana (previously called HR BioPetroleum) worked with Royal Dutch Shell on a pilot facility to grow algae on land leased from the Natural Energy Laboratory of Hawaii Authority, on the west shore of Hawaii island.