Energy storage adoption continues to ramp up in Hawaii
December 4, 2015
In 2014, Hawaii Electric Co. responded to an impending grid crisis by making a major push for energy storage adoption in an effort to manage an overabundance of solar energy. According to Greentech Media, the utility submitted requests for proposals for 60 to 200 megawatts of storage, in hopes that energy storage projects would give the HECO the flexibility needed to efficiently store and distribute an overabundance of solar and wind energy without offending solar supporters or increasing costs at the state's oil-fired power plants.
"Hawaii is positioned as one of the nation's energy storage frontiers."
This utility-side push for energy storage, along with a recent Decision and Order issued by the state's Public Utilities Commission streamlining technical standards for customers adopting energy storage systems that help support the local grid, has positioned Hawaii as one of the nation's energy storage frontiers. Hawaii is aiming for 100% energy renewables and such lofty goals will be predicated on adoption of more distributed energy storage to maintain grid reliability and control consumer electricity expenses. Furthermore, legislative pressure from corporations with pro-storage interests, widespread voluntary time-of-use rate options and the success of existing energy storage projects could pave the way for even more storage adoption in the Aloha State. A closer look at these developments underscores just how explosive the potential for energy storage is in Hawaii.
Newly formed Distributed Energy Resources Council aims to support storage and smart meters
A new U.S. trade association, the Distributed Energy Resources Council of Hawaii (DERC), was founded in 2015 by six distributed energy corporations in support of behind-the-meter innovations. This came about as a direct response to the Hawaii Public Utility Commission's October Order, which DERC argued was not sufficient to create a sufficient foundation for the future of renewables in the state, according to Utility Dive.
"It is not just about solar anymore," argued Chris DeBone, CEO of the Hawaii Energy Connection, one the six co-founding members of DERC. "The like-minded group of participants in this new coalition did not see proper representation in what was called the DER docket."
Ultimately, the coalition hopes to encourage the introduction of new policies that put the state in a favorable position to meet its 2045 renewables mandate. According to DeBone, "There has to be an advanced grid if the state is going to get to 100 percent renewables." If DERC has a say in the matter, energy storage will play a large role in bridging the technology gap.
Utilities encourage time-of-use models to stoke storage adoption and manage renewable generation
Three major Hawaiian utilities - HECO, Hawaii Electric Light Company and Maui Electric - recently created new opportunities for energy storage as well by introducing voluntary time-of-use models to their residential customers. According to Pacific Business Journal, the new rates were designed to work in tandem with other modifications to electric rates occurring across the state. Jim Alberts, one of HECO's senior vice presidents, said that these voluntary price shifts would provide customers with more control over their energy bills and the ability to use renewable energy more cost-effectively.
Of course, commercial customers already have pricing structures in place that allow for more control over energy bills. Hawaiian electric rates for example, include priority peak demand charges of $18/kW and priority peak period costs of $36/kWhr. Electricity costs can be dramatically lowered by reducing overall energy demand and avoiding electricity use during peak hours by relying on distributed energy storage during the utility's most expensive periods.
Considering that energy storage has been identified as a potential solution for other states with problems created by an over-abundance of renewable energy, in particular California's battle with the "duck curve" and an overabundance of wind energy in Texas, it is likely the technology can serve a similar purpose in Hawaii. Phase 2 of the state's energy Decision and Order will also aim to further development opportunities for energy storage resources, increasing the likelihood that greater adoption statewide is imminent.
Commercial applications display the versatility of storage
Another factor contributing to the swelling support for energy storage deployment in Hawaii is the long-term benefits afforded to businesses and organizations that have invested in behind-the-meter storage projects for their campuses and facilities. A shining example of this trend is the adoption of thermal energy storage by the Kapiolani Medical Center.
The medical center's original chilled water system was installed in 1971 and badly in need of an upgrade. Operational and maintenance problems began to peak and energy storage proved to be vital to the solution. The hospital's new chillers were installed in conjunction with CALMAC IceBank energy storage tanks. This installation expanded Kapiolani Medical Center's ability to manage its sizable electric bills by shifting peak from daytime to nighttime, when demand-influenced energy rates are at their lowest. By doing so, the medical center estimates it will save millions of dollars over the projected lifetime of the cooling system.
According to the Department of Energy, Nordstrom deployed the same technology atop its Honolulu department store in 2013. Much like the Kapiolani Medical Center, Nordstrom integrated thermal energy storage in order to allow its facility to save electricity generated at night, when energy rates are least expensive. This energy, stored in the form of 43 tons of ice, is then used to cool the building throughout the day and negate the need for operating cooling systems when energy rates are higher.
