Hawaii Energy, Environment, and Sustainability: Some Efforts at HNEI

1. Hawaii Energy, Environment, and Sustainability: Some Efforts at HNEI Hawaii Island Systems Sciences Conference Rick Rocheleau and Terry Surles Hawaii Natural Energy Institute January 6, 2009

2. Hawaii Is Heavily Dependent on Petroleum for Energy Use

3. Hawaii’s Dependence on Foreign Oil Is Headed in the Wrong Direction

4. Hawaii’s Renewable Energy Sources • Wind (commercially viable on all islands - siting and integration) • Solar (commercial, PV cost) • Geothermal (30MW, permit for 60MW - utility need) • Biomass (potential for transportation and electricity use - land use, crop selection and conversion technology) • Municipal Solid Waste (commercial, limited resource) • Run-of-river hydro (commercial - very limited resource) • Pumped hydro storage (good potential - siting) • Ocean thermal (excellent resource - technology and cost) • Wave (excellent resource - technology and cost) • Current (via tides, limited potential)

5. Energy Challenge for Hawaii How do we reduce dependence on oil while • Keeping electricity and fuel costs competitive • Managing environmental impact and public acceptance • Maintaining reliability • Address greenhouse gas issues Meeting this challenge requires coordination from all stakeholders • Well-conceived policies – grounded by technology • New technology development • Validation and implementation of advanced energy systems • Program continuity Stakeholders want simple solutions but in general the solutions are not simple

6. HNEI Was Established in 1974, in Statute Since 2007 Hydrogen Renewable hydrogen production (biomass, solar) Hawaii Hydrogen Power Park (renewable fueling station) Photovoltaics – Thin film PV, Array Characterization Fuel Cells Novel fuel cells and materials (biocarbons, enzyme) PEM fuel cell testing and modeling Biomass and biotechnology Biomass conversion - solid, liquid and gaseous fuels Bioplastics and specialty products Ocean resources Seabed methane hydrates Energy - Hawaii National Marine Renewable Energy Center Batteries and electric vehicles – testing and modeling Deployment and demonstration of renewable & distributed energy systems. Systems integration and technology assessment 6

7. HNEI Develops Partnerships Critical For Addressing Overarching Issues Facing Electricity Systems Electricity System Issues Environment Quality: Life cycle analyses Grid Modernization: Renewable Technologies Peak Demand Global Climate Change Energy Security: Fuel Supplies, Critical Infrastructure Protection Environment Quality None Of These Issues Can Be Resolved Without Partnerships

8. The Remainder of the Presentation Provides a Snapshot of Some HNEI Programmatic Activities • Hawaii/New Mexico Energy Security Project • Maui Smart Grid • Hawaii Renewable Energy Development Venture (with PICHTR) • Hawaii Hydrogen Venture Fund (in support of Kolohala Partners) and related projects • Ocean Energy Center • State of Hawaii Energy Grant (with DBEDT and EH) • Hawaii PUC RPS goals evaluation • WESTCARB

9. HI/NM Program Unique in Being Able to Address Needs of Four Different End-Users plus the Stakeholders • Meet DOE mission needs – transferability of analytical tools • An understanding of the technical impact of renewable energy deployments as they relate to the mainland • Lessons for mainland systems and analytical tools for mainland grids • Mechanisms for addressing stakeholder needs • Address utility system planning needs – with accurate and usable tools • Mechanism for evaluating new technologies to address system impacts • An understanding of impacts of renewable energy technology deployments • Address state (DBEDT and PUC) initiatives • A methodology and tool for State policymakers to analyze the impacts and tradeoffs of technologies (high penetration renewable energy) and policies (RPS). • An in-state capability to perform further energy analyses – starting with the PUC • Provide information to commercialize clean energy products and respond to concerns of multiple business-environment-consumer stakeholders in Hawaii

10. Existing Partnership Activities in Hawaii as Part of the HI/NM Project • Kauai Energy Roadmap • To develop possible roadmap for increasing the penetration of renewable energy. • Oahu Grid (Big Wind) Study • To develop models that characterize the grid and to address wind projects that could impact the Island • Maui Grid Modernization • Deploy energy storage, generation and demand-side management technologies to reduce peak load and enable further expansion of renewable energy • Maui Grid Study • Develop validated power systems model to address impacts of increased wind and the necessary mitigation technologies • Big Island Energy RoadmapEvaluate scenarios to identify the impacts and benefits of various technology approaches to increase energy security and the penetration of renewable energy

11. Thrust of the Big Island Program Is Based on Sustainability – DOE/State Objective Identify energy choices that are economically, environmentally & socially acceptable

12. Models provide “What-if” capabilityWhat if 1MW of wind power were added to the island? • With no other changes to the system, an increase in wind power offsets fossil fuel generation and reduces emissions and carbon footprint but.. • More spinning reserve will be needed - oil must be burned so utility can respond to rapid changes in wind, often inefficient use of fuel • If wind developer is paid avoided cost, consumer may actually pay more for power

13. Transient Performance Model Validation Significant Wind Fluctuation (04/03/07) PSLF Historical Data Frequency (Hz) Time (seconds) PSLF Historical Data Apollo Windfarm (MW) Time (seconds)

14. Big Island Project Scenario Results and Summary • In the Baseline scenario, 27% of electricity is generated from renewable energy. • Energy efficiency, load control & PHEVs reduced variable cost and reduced wind curtailment. “Enhanced Energy Mgmt” results are additive, albeit not linearly, to the renewable energy scenarios. • “Smart Grid” technologies needed to accommodate substantial penetration of as-available generation. These technologies should reduce variable cost and yield environmental benefits. • New technologies (controls, energy storage, coordinating thermal generation, etc) will be needed to enable substantial increases in the penetration of wind power. • It is not clear how to pay for these technologies. What is the business case and regulatory support that is needed? • Initial analyses have shown that additional geothermal systems could lead to the retirement of oil-fired power plants that could achieve the stakeholder metrics.

15. RD&D, Testing, Evaluation, and Validation of Distributed Energy Resource Technologies • Evaluate and demonstrate emerging technologies with industrial and national laboratory partners • Energy storage: flow batteries, ultra-capacitors • Monitoring, measurement, verification for “Smart Grid” systems • Hydrogen energy systems • Renewable resource utilization: biomass, PV, wind • Deployment of technologies to address transmission congestion, peak demand, grid stability, and renewable intermittency • Low opportunity costs for industry and DOE

16. “Maui Smart Grid Project” Is Designed to Meet Federal, State, and Utility Needs • “Overarching objective is to develop and demonstrate a distributed automation system that aggregates DG, energy storage, and demand response technologies in a distribution system to achieve both T&D level benefits.” • Focus is on “reduction of peak demand by at least 15%” using a diverse mix of DG, storage, renewable energy, demand response • Additional effort to provide solutions for mitigating the effects of as-available renewable energy • Funded at $14M over three fiscal years • Just under $7M from DOE • 20% cost share in first two years, 50% cost share in last budget period (FY2010 funding, to cover 10/10 through 9/12) • Real “iron in the ground” and utility cooperation in a project to achieve some of their primary goals for the energy sector

17. Proposed Architecture Addresses Both Goals of the Project

18. HNEI Is Supporting the Hawaii Renewable Energy Development Venture • The Pacific International Center for High Technology Research is leading HREDV • Funded by DOE/EE • HNEI is providing support for development of • Metrics for selection • Additional selection criteria • Draft metrics have been developed for review • Draw from experience of other state R&D programs

19. Selection Criteria Are Based on Unique State of Hawaii Needs • Projected caps on available per project funding • Need to take advantage of collaborative funding • Commercial readiness • Specific technology areas • Utilization of indigenous renewable resources • Separate categories for transportation and electricity generation • Enabling technologies for greater utilization of renewable resources • End use efficiency and demand response technologies • Linkage to state and federal policies • Corporate qualifications

20. Demonstrations Integration of Project’s Results Can Lead to New Regulations and Policies and Provide Incentives to Accelerate Commercial Readiness New Energy Idea Proof of Concept Self Sustaining Market Technology Development International Market Valley of Death

21. HNEI Provides Technical Support to the Hawaii Hydrogen Venture Fund • Led by Kolohala Partners • Similar to the HREDV project in terms of technology timelines • Builds upon other HNEI projects involving the advancement of hydrogen technologies • Fuel Cell Test Facility • Hawaii Hydrogen Power Parkand related, newer activities

22. Big Island Power Park Sites Kahua Ranch – Small-scale Integrated PV-Wind-Hydrogen Test Bed 7.5 kW wind turbine + 5 kW PV 2kW Pressurized PEM electrolyzer 5 kW PEM Fuel Cell Hawaii Volcanoes National Park (HAVO) Up to 6 plug-in hybrid - hydrogen shuttle buses Renewable powered electrolysis Multi-agency partnership involving USDOE, State of Hawaii, DOT, DOI, DOD 1 1 2 2 22

23. Hawaii Hydrogen Power Park - Kahua Ranch PV-Wind-Hydrogen System • Integrates PV, wind, batteries, electrolyzer, and fuel cell with remote operation via internet. • Test bed for validation of emerging hydrogen and renewable technologies • Proposed as focal point for renewable energy outreach and education • Partners include Kahua Ranch, PICHTR, Plug Power, and EH.

24. HAVO Renewable Hydrogen Fueling Station Hydrogen Fueling Infrastructure funded by USDOE ($1.2 million) and State of Hawaii($1.2 million) Renewable electricity including geothermal from PGV at special rate delivered over HELCO grid to HAVO at the Kilauea Military Camp Partner with Hawaii Center for Advanced Transportation Technologies (HCATT) Hydrogen production 12 to 20 kg/day Up to six (6) vehicles; (2) Battery-dominant H2 ICE PHEV - Budget $986K and One (1) Ford H2 ICE shuttle - DOE supplied Station to be supplied on a “turn-key” basis – production, compression, storage & dispenser to be operational by 9/09 24

25. Hawaii National Marine Renewable Energy Test Center One of two ocean energy test centers announced by USDOE fall 2008 Objectives: Wave: Facilitate development & implementation of commercial wave energy systems for use in Hawaii and elsewhere - one or more of these systems to supply energy to grid at >50% availability within 5 years Ocean Thermal Energy Conversion: Conduct long-term testing and help move OTEC to pre-commercialization

26. Test Sites 26

27. OTEC Challenges: Technical challenges Large diameter and long pipelines Low cost, efficient heat exchangers Large, stable platform and mooring design Dynamic power cable to shore Cost Challenge: Low cost must be achieved with new materials, better engineering, innovative designs, while taking advantage of economy of scale and current offshore technology. 27 Makai Ocean Engineering

28. Basic Research & Development Collaborative Technology Development Integration Application Technology Commercialization National Laboratories Universities Industry R&D Suppliers Vendors End Users Reprise: HNEI Creates Partnerships to Link R&D and Public Policy to Technology Commercialization Institutional Issues Regulations Incentives Government

29. A Sustainable and Secure Future:Hawaii Can be a Leader • Environment • Energy • Economics • Equity • Education